IPTV Reseller Margin: How to Calculate, Compare and Improve It
Published: 2025-05-21
Understanding your IPTV reseller margin is fundamental to pricing decisions, package selection and growth planning. This guide covers the margin calculation methodology, what affects it and how to optimise it across different business scenarios.
The Margin Formula
Gross Margin % = ((Customer Price − Credit Cost) ÷ Customer Price) × 100
Where "Credit Cost" is: (package price ÷ credits) × credits per subscription duration.
Margin by Credit Package and Customer Price
| Package | /Credit | £6/mo margin | £8/mo margin | £10/mo margin |
|---|---|---|---|---|
| Std 50cr | £2.80 | 53% | 65% | 72% |
| Std 100cr | £2.30 | 62% | 71% | 77% |
| Std 200cr | £1.75 | 71% | 78% | 82% |
| Std 1,000cr | £1.65 | 72% | 79% | 83% |
The Volume-Margin Relationship
Larger credit packages reduce your per-credit cost and therefore improve margin. However, the improvement from 200 credits (£1.75/credit) to 1,000 credits (£1.65/credit) is only 10 pence per credit — at £8/month per customer, that is 1.25% additional margin. The bigger margin gains come from the step between 50 credits (£2.80) and 200 credits (£1.75), a difference of £1.05/credit — equivalent to approximately 13% additional margin at £8/month.
Subscription Duration and Margin
The credit rate is identical across all subscription durations (1 credit = 1 month). Your margin is determined entirely by the ratio of your customer price to your credit cost — the duration does not change the per-month economics. A 12-month subscription at £5/month effective provides the same margin per month as a 1-month subscription at £5 — but the 12-month pre-payment provides cash flow that the 1-month does not.
Improving Margin Practically
The two levers are: increase customer prices (bounded by market rates) and increase credit volume to access lower per-credit rates (bounded by your consumption capacity). The safest margin improvement is moving from Standard 50 credits to Standard 200 credits as your customer base grows — this reduces per-credit cost by 37.5% without any customer-facing change.
For worked profit examples with specific scenarios, see how to calculate IPTV reseller profit. Use the profit calculator to model your specific combination.