Why you need to invest in an OTT platform?

OTT is the exact opposite of a wired system that uses a multiservice carrier to distribute audio or video content. Instead, the system uses Internet signals to deliver audio and video services to end users. The main advantages of private OTT channels include the profits that can be earned. As subscribers are switching to these systems, they are dropping their cable subscriptions. The reason for this is that OTT channels offer more variety and customization than using MSO services that try to cater to large numbers of people. You can choose what to watch and when, and even customize playlists.

Why you should invest in your OTT business

If you’re considering launching your own OTT service, the availability of data and related infrastructure is especially important. That’s because today’s consumers are spending more time than ever watching video content on their mobile devices. Consumer data buckets are getting bigger, and data is becoming cheaper than ever before.

By investing in OTT services, you can take advantage of opportunities that pay TV can’t offer and reach your viewers directly. In addition to data, investment and coverage in fixed and mobile infrastructure is increasing with the introduction of 5G networks and the expansion of LTE networks. These developments make data connectivity available for OTT video streaming services in existing and new markets.

Companies with their own OTT services also have the flexibility to customize and brand their content, while maximizing their revenue through customized monetization models.

Monetization models for OTT platforms
There are multiple options when it comes to parsing your video profitability options. Let’s get started.

Subscription Business Models
Typically, the subscription video-on-demand (or SVOD) model is best suited as a baseline monetization strategy for OTT entertainment businesses. SVOD simply means that customers pay a monthly or annual subscription fee for access to your content.

This format is probably the most familiar to your potential customers as it is the model used to build Netflix, Hulu, Disney+, etc. This approach is ideal if you have a large library of content locked, loaded and ready to stream.

Transactional Business Models
If you don’t have a large content library up front, transactional video on demand or TVOD is a better option. TVOD allows your customers to buy video content on demand, and often one at a time – think video rental, digitally. But in most cases, TVOD can be used as a complement to an existing SVOD strategy. In this way, creators can select specific high-value content while allowing viewers to access more of their existing video.

Pay-per-view real-time
Another option for profiting from video content is to use a real-time pay-per-view business model option. In this case, you would charge a one-time fee for an exclusive live event, such as a virtual screening premiere or a Q&A with an actor or director.

Today’s consumers want to have it all and have it immediately. OTT services ensure that consumers can access the content they want, whenever and wherever they want, on whatever device they want.

At Xmediatv, we believe there is a lot of room for OTT services in a growing market. There are many opportunities for you to bypass the operators and monetize your content independently. Ready to build OTT services for your business?