OTT platforms for video streaming are in demand among viewers and companies. Viewers always have something to watch, thanks to plenty of different video streaming services out there, and companies generate revenue by creating video content. Those who have already launched an OTT video streaming service utilize it for various goals: to educate, to entertain, to inspire, to inform, and many others. But the general purposes are to make money and build strong relationships with viewers.
Let’s delve deeper into the topic and observe the facts about OTT platforms that any business should know.
5 Key Facts About OTT Platforms Any Business Should Know
#1 OTT platforms have multiple monetization capabilities
OTT advertising, subscriptions, and a pay-per-view approach are the most common revenue-generating models in the video streaming industry. When choosing an OTT solution, check if it supports all pricing options. Then, you can test all of them or create a hybrid approach.
There are different combinations. Netflix’s new pricing models made a lot of buzz. They offer two plans to viewers: one is an ad-based subscription at a lower price, and another is an ad-free subscription at a higher price. You can also separate advertisements from subscriptions offering viewers to watch videos with ads for free or pay for a subscription to remove ads.
Some platforms divide content into two categories: one is available on a subscription basis, and the other is Premium videos that require an additional fee.
#2 OTT platforms allow you to reach people around the world
Delivering videos via the Internet requires a particular infrastructure: encoder, transcoder, applications, and CDN. Among all, CDN is what will help you deliver content over long distances.
CDN is a content delivery network – a network of geographically distributed servers. If an origin server is located far away from a viewer, the video delivery will be quite slow. That’s why the video is cached on servers that are located closer to the user. As a result, the content delivery is smooth and interruption-free. People enjoy videos without any latencies.
CDN can help you become a global video streaming service as it can deliver videos anywhere.
#3 OTT video segment is projected to generate a large amount of revenue
According to Statista, the revenue in the OTT video segment is projected to reach $316.10 billion in 2023. By 2027, it is predicted to reach $462.90 billion at a CAGR of 10.01%. The experts forecast that the number of viewers will amount to 4.22 billion users.
#4 Viewers choose online video streaming services for various reasons
For starters, video streaming services stream various content formats: VOD, TV programs, catch-ups, and live streams. The most popular is VOD (video-on-demand) content because it is available at a user’s request. VOD services don’t have a schedule compared to traditional television like cable or satellite.
Usually, VOD service providers share original content that viewers love. They invest a lot in producing unique videos.
Another factor appealing to people is the cost of online video streaming services. While traditional television costs more than $50, a video streaming service usually charges around $10-$20. It means that people can have several subscriptions to various platforms.
Video streaming services are usually available on multiple devices: from smartphones to Smart TVs and tablets. People can watch videos on any device they want. Some customers prefer viewing the content in high quality on a big TV screen, while others use smartphones.
The availability of streaming services on multiple devices allows customers to watch content anywhere they want. They only need an internet connection and a compatible device. Some services even provide the download option to their client. So, a person can take care of content consumption in advance, in case they know that there will be no internet.
To summarize, online video streaming services give people complete control over content consumption. A viewer is to decide what, when, where, and how they watch.
#5 When it comes to OTT video streaming, everything is taken care for you
Developing an OTT service from scratch requires a lot of resources. You need to hire a team of developers, marketers, and designers, manage all employees, and produce content in meanwhile.
The shortest and most cost-effective way to launch a streaming service is to contact a company that specializes in the development of an OTT solution for video streaming, such as Setplex. They have already created everything necessary for smooth video delivery and management.
Final Thoughts
An OTT video streaming service is a popular and money-generating business area today. It is in demand among viewers, which can be beneficial for any company. A video streaming platform can become an effective way to generate revenue and build trust with your customers.