Glossary · Monetization

What is revenue share in streaming?

Revenue share is an arrangement in which income from a streaming service is split by percentage between parties, for example between a service and its platform vendor, an app store, a payment provider or the owner of the content.

Who takes a share

  • Platform vendors: some charge a percentage of sales, or a fee per subscriber, instead of or on top of a fixed price
  • App stores: a commission on purchases made through store billing
  • Payment providers: a percentage and a fixed amount per transaction
  • Rights holders: a share of what their titles earn, sometimes above a minimum guarantee
  • Ad partners: a share of advertising revenue they sell on your behalf

Revenue share vs flat pricing

A share costs little while a service is small and a great deal once it grows, because the fee rises with every sale. A flat fee is the reverse: it is the same whether the month was good or bad.

To compare, multiply the percentage by the revenue you expect at 12 and 24 months, not by today's. A 10% share of $50,000 a month is $5,000, which is more than most fixed platform plans.

Revenue share with content owners

Licensing deals often pay the rights holder a percentage of each rental, purchase or ticket, or a share of subscription income in proportion to viewing. These deals need accurate reporting per title and per territory, so check that the platform's finance reports can produce it.

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FAQ

Revenue share, answered.

More definitions in the streaming glossary.

Planning a streaming service?
Is a per-subscriber fee a revenue share?

In effect, yes. It is a fixed amount rather than a percentage, but it grows with your audience in the same way and takes a larger part of a low-priced plan.

Is revenue share ever the better deal?

It can be for a very small or uncertain launch, since cost stays low if sales are low. Work out the revenue at which a flat fee becomes cheaper, and how soon you expect to reach it.

How is revenue shared with content owners for subscriptions?

Usually by viewing: a pool of subscription revenue is divided among titles in proportion to the minutes or streams each one received in the period.

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