Late-Window Monetization: How Library Films Make Money on AVOD and FAST

Most people think movies make money the same way they always have: theaters first, then streaming, then DVD. But that’s not how it works anymore. Today, a film can sit in a studio’s vault for years-never shown in theaters, never on premium streaming-and still earn real money. How? Through late-window monetization on AVOD and FAST channels.

What Exactly Is Late-Window Monetization?

Late-window monetization means selling or licensing films that have already passed their traditional release windows. Think of it like selling last season’s clothes at a discount store-but for movies. These aren’t new releases. They’re older films, often from the 1980s to early 2010s, that studios own but don’t actively promote. They’re called "library films."

Before 2020, these films were mostly ignored. No one wanted to pay for them. But with the explosion of free ad-supported streaming (FAST) and ad-supported video on demand (AVOD), that changed. Now, these forgotten titles are turning into steady income streams. A film that earned $5 million in theaters 15 years ago might now make $200,000 a year just by sitting on Tubi or Pluto TV.

AVOD vs. FAST: What’s the Difference?

People mix up AVOD and FAST all the time. They’re both free, both ad-supported, but they work differently.

AVOD (like YouTube, Peacock Free, or The Roku Channel) lets users choose what to watch. You search for a movie, click play, and it starts. The platform serves ads before and during playback. These platforms care about user behavior-what people search for, how long they watch, what they skip.

FAST (like Tubi, Freevee, or Samsung TV Plus) is more like traditional TV. You tune in to a channel. The content plays automatically. You can’t skip ahead. Ads run every 8 to 12 minutes, like broadcast TV. These channels don’t care if you chose the movie-they just need viewers to stick around.

For library films, FAST is often the better fit. Why? Because viewers don’t need to know the title. They just need to be in the mood for an old action flick or a cozy 90s rom-com. The channel curates the lineup. The film doesn’t have to be famous. It just has to fit the vibe.

How Do Studios Make Money From Old Films?

It’s not about box office. It’s about licensing deals. Studios like Sony, Paramount, and Lionsgate don’t sell the films outright. They license them to AVOD and FAST platforms for a fixed term-usually 2 to 5 years.

The deal structure is simple:

• Flat fee per film: $5,000 to $50,000, depending on age, popularity, and library size
• Revenue share: 10% to 30% of ad revenue generated
• Minimum guarantee: Sometimes $10,000 even if the film doesn’t earn much

For example, in 2024, a deal for 120 films from a mid-sized studio went to Tubi. The studio got $1.2 million upfront-no strings attached. The films had never been on streaming before. Some hadn’t been on TV in 20 years. But Tubi added them to their "90s Action" and "Classic Comedies" channels. Within six months, those films generated 42 million minutes of viewing time.

That’s not a hit. That’s a steady drip. And it adds up.

Why Are These Films Suddenly Valuable?

Three big reasons:

1. Ad revenue is rising: AVOD and FAST ad rates jumped 40% between 2023 and 2025. Advertisers are shifting budgets from cable to free streaming. A 15-second spot during an old action movie now costs $18 on Pluto TV-up from $9 in 2022.
2. Viewers are hungry for nostalgia: A 2024 Nielsen study found that 68% of viewers aged 35-54 watch library films because they "feel familiar." These aren’t just old movies-they’re emotional anchors. People remember watching them on VHS or late-night TV.
3. Content costs are crushing new productions: Producing a new movie costs $50 million on average. Licensing a 1992 comedy for $20,000? That’s a bargain. Platforms can fill 80% of their schedule with library content and still turn a profit.

It’s not about quality. It’s about volume and predictability. A studio with 500 library titles can generate $1 million a year just by licensing them out. That’s pure profit. No marketing. No reshoots. No cast salaries.

Which Films Make the Most Money?

Not all library films are equal. Some sit idle. Others become goldmines. Here’s what works:

• Genre films: Action, horror, and comedy from the 80s-2000s dominate. Think Die Hard, Evil Dead II, Wayne’s World. These have cult followings and high replay value.
• Family-friendly titles: Animated films and live-action kids’ movies from the 90s. The Land Before Time, Beethoven, The Little Mermaid (the original 1989 version) still pull millions of views.
• TV movies and made-for-TV films: These are often overlooked, but they’re perfect for FAST channels. Think Clueless (the 1995 TV version), My Best Friend’s Wedding (the 1997 TV cut), or Home Alone 2 (the version that aired on ABC every Christmas).
• Foreign films with U.S. distribution rights: A Japanese horror film from 2001 or a French comedy from 1998 can become a surprise hit if it fits a theme channel.

What doesn’t work? High-brow dramas, silent films, and documentaries without broad appeal. They don’t get enough viewers to justify the ad load.

How Platforms Decide What to Play

It’s not random. FAST and AVOD platforms use algorithms to group films into "channels" that feel like TV networks.

Examples:

• "90s Teen Movies": Clueless, Scream, Can’t Hardly Wait
• "90s Action Heroes": Terminator 2, Speed, Con Air
• "Holiday Classics": Elf, A Christmas Story, Home Alone

These channels run 24/7. A viewer might stumble into "90s Action Heroes" at 2 a.m. and watch three movies in a row. That’s 3 hours of ads. That’s $1,500 in ad revenue from one viewer’s binge.

Platforms also test new groupings. A few months ago, Tubi launched "Midnight Horror Binges"-a channel of low-budget 80s slashers. It got 12 million views in 30 days. The studio behind those films got a 25% revenue share. That’s $180,000 in 30 days for films that cost $5,000 to license.

What’s the Catch?

It’s not all easy money.

First, licensing deals are shrinking. Platforms are demanding lower fees and higher revenue shares. In 2025, studios are getting 15% revenue share on average, down from 25% in 2022.

Second, not all films are licensed. Some are tied up in rights disputes. A film might have music that’s still under copyright. Or a voice actor’s estate hasn’t signed off. That’s why studios are hiring rights clearance specialists-just to untangle old contracts.

Third, viewership is dropping for films older than 1995. Younger audiences don’t recognize them. The sweet spot is 1990-2010. Anything before 1985? It’s a gamble.

Is This the Future of Film?

Yes-and no.

It’s not replacing theatrical releases or premium streaming. But it’s becoming a critical part of the business model. Studios now treat their film libraries like real estate. They don’t just own them. They rent them out.

Some studios have built entire departments just to manage late-window deals. Sony Pictures alone licensed over 800 titles to FAST and AVOD platforms in 2024. That generated $28 million in revenue-more than what they made from their 2024 theatrical releases.

For indie filmmakers, this is a lifeline. A small film that flopped in theaters can find a second life on Tubi. A documentary that never got distribution can earn $50,000 over three years from ads on Freevee.

The old rule-"if it didn’t make money in theaters, it’s worthless"-is dead. Now, the rule is: "If you own the rights, it’s an asset."

What’s Next?

AI is starting to play a role. Platforms are using machine learning to predict which library films will perform best in which channels. One company, ReelData, now offers studios a "monetization score" for every film in their vault. It looks at genre, cast, director, release year, and even the number of times it was rented on VHS.

More platforms are launching "vintage" channels. Amazon Freevee just rolled out "The 90s Vault." Roku added "Classic Comedy Rewind." These aren’t gimmicks-they’re revenue engines.

And as ad-supported streaming grows, so will the demand for library content. By 2027, experts predict that over 40% of all streaming views will come from films older than 10 years.

That means the next time you see an old movie you haven’t thought about since high school-it’s not just nostalgia. It’s a business.