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What is the Best Business Model for Video Publishers: Advertising or Paid Videos?

Video publishing is seen ubiquitously on the internet these days. In the context of promotional videos, it is one of the most effective forms of internet marketing. In the context of making third party video content available to users, revenue can be generated either by advertising or by offering paid videos .

The question for video publishers is which system works better? Is it better to offer free content and make profit by advertising, or to put a payment system in place? There are different payment systems.

Pay walls are commonly used in various web publishing sites. Another way is to offer limited free viewing time. There are some significant issues with pay walls. Pay walls make it necessary to pay for content that users have not seen.

On the other hand, sites that offer a limited free viewing period tend to be more profitable, because people are more likely to pay for content once they have started watching it.

To understand whether it is better to advertise or offer a paid service, one needs to carefully consider sites which are applying both strategies and observe the success of either site.