How does ad monetization work with streaming services platform?

There are three dimensions to this answer

1) Type of monetization:

a) SVOD or subscription video on demand- These are services who charge a monthly subscription to watch content e.g. Netflix, Disney+

b) AVOD- Advertising video on demand- These platforms make a small portion of the content available for free but are embedded with advertisements

c) TVOD- Transaction video on demand- This is similar to Youtube when they want to charge a small fee to watch a movie or a episode

2) How are ads triggered while watching content:

a) When the user hits play on a content, a content manifest that contains source of the content along with ad markers is provided to the users app, The app uses this to find and play the content

b) When the playback hits the ad marker, it contacts the Ad Insertion server. The ad insertion server calls the ad engine that recommends an ad based the customer profile and demography

c) As soon as the ad server gets a response back from the ad engine, it updates the content manifest and sends its back to the users app. The users app plays the ad and then switches back to the content video once the ad playback is complete

3) What are the various types of ads

a) VAST based(Video Ad serving template)- These type of ads are usually non interactive.

b) VPAID based( Video player Ad interface definition) - These type of ads are interactive ads and allow for some interaction between the ad & the user e.g. a survey, a game etc.