OTT platforms for video streaming are popular enough today to make many businesses consider the opportunity to launch their own OTT video monetization platforms. It is a profitable business since viewers have a huge demand for video content.
People appreciate the convenience and flexibility that online streaming platforms offer them. They cut the cable cord to become regular users of online streaming services. Let’s explore what else a business should keep in mind about the OTT video streaming business.
OTT: What Should a Business Know About Over-the-Top Platforms?
3 Essential Things About OTT Platforms
1. OTT platforms provide plenty of opportunities for monetization
Your monetization opportunities will partially depend on the OTT solution you obtain to run a video streaming platform. Those available in the market have different functionalities, so it is important to identify your goals and research before paying for a solution.
Generally, there are the following common revenue-generating models implemented in an OTT solution:
- Ad-supported monetization model: viewers don’t purchase a fee but watch content on a free basis. A content provider makes money by playing ads during a video that a user watches.
- Subscription-based monetization model: customers purchase a recurring fee for access to videos on your video streaming service.
- Transactional-based monetization model: unlike subscriptions that give access to all videos, transactional-based platforms charge for every video on the service.
Besides monetization models, you can grow your revenue by providing applications for all devices and utilizing a CDN.
Applications will help you reach more people since they all prefer different gadgets. With the help of apps, you will empower users to stream content on Smart TVs, smartphones, tablets, laptops, and desktop computers. They will be able to choose the device they prefer and not invest in buying additional gadgets.
A CDN (content delivery network) will transmit your video content worldwide, providing a seamless viewing experience. This provides the opportunity to attract audiences from around the world, increasing revenue. Due to it, it is possible to watch, for example, Albanian TV channels in the USA.
2. People seek original content at affordable prices
Online video streaming platforms usually invest in content creation a lot. They want their videos to be of high quality, making unique and engaging content.
Moreover, online streaming services like Netflix services are usually less expensive than traditional television. This is the reason why people cut the cable cord and switch to streaming platforms. While providers charge a fee of $5-$20 a month, cable companies can cost up to $100 a month.
Another significant feature of streaming services is personalized recommendations. Many OTT solutions have advanced algorithms implemented. This mechanism allows you to personalize the user experience based on their viewing history, interests, and other data. After analyzing such information, the recommendation engine provides tailored recommendations to every viewer.
3. Three elements lead OTT platforms to success
As they say, three elements influence the success of OTT video streaming platforms: marketing, content, and technology.
Content is king. It is the first thing people estimate when deciding whether to buy a subscription.
Marketing will help you attract more viewers to your platform and spread your name. Use different marketing channels: SEO, social media services, paid advertising, content marketing, offline advertising, affiliate marketing, and others.
Technology is the OTT solution you use for running your video streaming business. Its functionality and capabilities can influence the experience people get on your platform. For example, suppose the solution supports adaptive bitrate streaming. In that case, there are more chances that your viewers will be satisfied with streaming videos on your platform, as they will get uninterrupted video playback.
Final Thoughts
The convenience, content diversity, flexibility, and personalization make OTT platforms appealing to viewers. For this reason, small businesses are launching their own streaming services to attract audiences and monetize content. They need the right OTT solution to run the service successfully.
