Settlements

Contents

Overview

As partnerships between communications service providers (CSPs) and over-the-top (OTT) providers evolve, settlement models need to be flexible enough to offer a variety of ways for OTTs to get paid according to the agreements made (from large providers like Netflix to smaller long tail OTTs). MarketONE provides end-to-end capabilities around contracts, agreements, and settlements made between the CSP and the OTT allowing them to be applicable for any OTT product, and any size of OTT.

Supported Capabilities

MarketONE supports the ability to create models for partnerships and settlements which can be used across any agreements between a CSP and an OTT. From the time of defining the partnership model, to creating the agreement associated to the product and the generation of the settlement report, all of the functions are fully managed and maintained within MarketONE. CSPs can track their agreements that are in place, and also see the performance of the products purchased across the various partnerships via MarketONE.

Recommended Experience

CSPs have access to the MarketONE Partner Management (PLM) domain as part of MarketONE. CSP administrators can log in to their portals and access their partnerships and make changes. The CSP needs to perform the following steps to manage and maintain their OTT settlements:

  1. Create a Partnership model.
  2. Create a Settlement template.
  3. Create Agreement.
  4. Create an OTT Settlement model.

The first two steps above are performed by a CSP to a model and a template, and are not dependent on any specific OTT. When an OTT is selected by a CSP to launch, the terms of the agreement are created as part of the agreement flow. The OTT settlement model then ties up all the components required for the incoming transactions to be rated and appropriately charged to all parties. While MarketONE supports a variety of settlement models, the two models which are recommended for OTT providers are the following:

  • Wholesale flat rate
  • Revenue share

As part of the wholesale flat rate, the CSP agrees to pay the OTT a fixed amount (for example: $9 per subscription sold to their customers). While there are negotiated open market values of the service, the CSP has the flexibility to charge the customer at any price within those set boundaries.

In case of the revenue share option, the CSP agrees with the OTT to pay a portion of the subscription fees, charged to the customer at the time of purchase or every anniversary day. Unlike the wholesale flat rates, the revenue share models are dictated solely by the amount charged to the end customer. The percentages are set within the agreement and can be tiered if needed.

Revision History

Version Description
2020.03 Added this topic.