Expand your business by starting an OTT business. Here are 10 reasons why this model will help your brand grow consistently.
Looking for avenues to expand your business and earn more? You might want to look at how to start an OTT business.
According to sources, the projected revenue for OTT business in 2021 is $171 billion. The USA tops the charts with a revenue projection of $60 billion in 2021.
OTT business is seeing a high demand with many customers moving away from traditional TV. With the pandemic, this number is growing steadily as customers prefer the freedom to choose what they want to watch and where. Netflix alone has over 200 million subscribers this year.
Still not convinced about starting an OTT business plan? Here are 10 reasons why it benefits you:
Reasons to Choose OTT Business:
Gone are the days when customers paid a subscription for cable and satellite TV, just to watch content on the broadcasters’ schedule. Now, they prefer using OTT services, and here’s why:
- Customers have control over what they watch and where they watch video content.
- They are not bound by long-term contracts that are expensive but can unsubscribe anytime they choose.
- With the surge in OTT service providers, customers have an option to subscribe to different OTT channels at an affordable price.
- The booming business also lets customers access content across countries.
The revenue in the OTT business model is expected to have an annual growth rate of 10.4%. That makes the revenue projection jump to $251 billion by 2025.
- There are different monetization models you can explore to earn revenue. Check OTT platform companies that offer dynamic monetization methods for better results. Prominent models are:
■ SVOD (Subscription-based Video-On-Demand)
■ TVOD (Transactional Video-On-Demand or pay-per-view model)
■ AVOD (Advertisement-based Video-On-Demand)
- Amongst all the above models, subscription-based OTT platforms have more interest with 78% of customers in the US using this service in 2020.
- You can also set your own prices based on the quality of your content and customer base.
Grow your audience
If you have loyal followers across social media platforms like Instagram, Facebook, and others, it is easy to market your OTT service. Loyal followers will be eager to see your content and won’t mind paying a premium to access it.
- It is easier to create loyalty by providing unique, original, and high-quality video content.
- OTT platform providers with global servers can stream content across various countries; this helps you expand your customer base.
- Use freemium models by giving free access to content for a limited time to attract customers.
- The user penetration rate for OTT services is at 30.3% in 2021 and they expect it to hit 34.8% by 2025.
Connect with customers
When you launch your OTT platform, keep in mind that your subscribers value quality and personalized experiences.
- An OTT platform allows you to build a direct relationship with fans.
- You can share recommendations suited to each subscriber based on their behavior.
- With an app, easily notify your customers when a new video or series is uploaded on your OTT.
- You will have a ready customer database with contact details to target marketing campaigns.
Improve overall margins
- No don’t have to worry about commissions as there will be no middlemen on your OTT platform
- One of the benefits of the OTT business is that you can set your own prices.
- Only cover the cost of setup and maintenance of your platform without worrying about cuts in profits.
Deliver better UI/UX
The success of a VOD service depends on how well it is designed. The navigation, ease of use, and experience of the app or website play a major role in retaining customers.
- Many platforms let you customize your entire OTT app and website based on your inputs and customers’ preferences.
- Customers value quality and with OTT platforms you can provide the best experience to your audience.
- Make an impact with easy-to-use controls, seamless navigation, and more.
Better brand visibility
A part of building your brand is ensuring you make an impact with your audience. OTT platforms help you achieve this with ease.
- With customization, you can stamp your brand in every aspect of your OTT services whether it is the colors, logos, the look and feel, and other details.
- Increase brand recall by using your OTT platform to enhance visibility with no third-party distractions
- Use referrals to bring in more customers while rewarding your existing customer base.
Source of passive revenue
It is easy to lose focus on your content when you’re actively trying to monetize it. OTT again is a great solution to keep the revenue coming without you worrying about it.
- Subscription-based OTT helps you keep your revenue stream steady.
- With a passive income, you can divert your focus on content creation.
- If your content is unique and original, you’ll have no problem attracting subscribers. Ensure the quality of your content is also high.
Control over content
- With an OTT service, you can be your own boss and decide what to deliver.
- There are no strict guidelines you’ll need to follow for third-party apps.
- This gives you a chance to flare up your creativity and focus on bringing variety to your content plan. You know your audience best, and can focus on creating good videos to suit their needs.
Easy to track the user behavior
OTT platform companies provide analytics for your service that can be accessed in real-time. This makes it easier to make business decisions on the go.
- Know what your customer spends time on. Create content or recommend similar content based on these inputs.
- Understand what is working for your audience and what is not and change your plans accordingly.
- Create marketing strategies backed by data for better success.
If you’re opting for subscription-based OTT, you can give your customers a smooth streaming experience.
- Audiences will enjoy and pay for ad-free content.
- No advertisements will allow your user to enjoy uninterrupted content increasing their on-app time.
- Ad-free content also ensures your content has 100% undivided attention.
To wrap up,
OTT platforms are the next best investment step to monetize your content. It not just gives you control over the user experience and quality but also increases your revenue. For a steady income source, look into starting your own OTT platform.