What is the Right Way to Grow the Video Business with OTT apps?

by Oct 31, 2020AVOD, OTT, OTT Benefits, Pricing, SVOD, Technology, TVOD0 comments

What is the Right Way to Grow the Video Business with OTT apps

As we are hopping on the bandwagon of the new normal, one of the buzzworthy trends we saw is our increased appetite for OTT content.

OTT apps as we know have been around the block for a long time. They have been creating massive buzz, especially since 2008 when viewers started to ditch the cable. This trend has continued since. A recent report estimates, in the next three years, the number of U.S. households that still use Cable TV subscriptions, will decline from 86.5 million to 72.7 million!

Continuing the buzz of the OTT over time, as of date, 64% of internet users which is roughly 182 million users in the US have at least one OTT subscription. Netflix alone has 152 million subscriptions!

Seeing all the growth this sector has been making, it won’t be an overstatement to say that OTT seems to be on the way to becoming the new mainstream TV. But what does OTT exactly mean? How do they work? When you should start your own OTT? Why should you start it? Let’s understand in detail.

What is OTT?

OTT stands for, Over the Top, it is defined as any kind of content delivered over the internet, without requiring the users to subscribe to a wired cable, or satellite TV service.

It includes various popular streaming services like Netflix, Disney+, Hulu, Roku.

If you are thinking of kickstarting your own OTT app, Let’s understand the basics of why it is a great idea and how to get started.

How do these OTT platforms Work?

Massive numbers of viewers are transitioning to OTT. Some reports suggest that by the end of 2020 this industry will be worth $160 billion!

With so many OTT businesses flourishing in the world today, we can be certain that no one model fits all. There are several unique ways each one of them earns revenue. Here, we will cover the most popular models which are tried and tested by the streaming giants.

1. SVOD (Subscription Video on Demand)

SVOD is a subscription-based model that allows users to access an entire library of videos for a certain subscription fee.

Users have to pay the recurring subscription fee, monthly or annually, according to the business policy. The SVOD is the most popular business model, wherein the OTT screen generates its revenue through user subscriptions. For example, Netflix, Disney+

2. AVOD (Advertising Video on Demand)

It is an ad-based business model in which the user has access to the entire content library without having to pay anything for it. This business makes money by displaying ads, sponsored content. For example, Youtube, Pluto TV

3. TVOD (Transactional Video on Demand)

It is a pay per view business model in which the user pays for specific videos. Although it usually won’t charge the user to sign up for this kind of service, they’ll end up paying for each video watched. For example, UFC Pass, NBA Pass

It is a pay per view business model in which the user pays for specific videos. Although it usually won’t charge the user to sign up for this kind of service, they’ll end up paying for each video watched. For example, UFC Pass, NBA Pass

4. Hybrid Model

Because of the increasing competition and demand, the OTT screen often mixes or uses a certain combination of the above models, known as Hybrid models.

For example, In a hybrid model, the user pays a smaller subscription fee (SVOD) and has access to the entire video library but still sees ads (AVOD) which can be removed at a higher subscription fee.

Or the same user has access to some part of the video library but have to additionally pay for the premium content (TVOD). For example, Prime Video

When to get your own OTT app?

After the incredible surge in demand for OTT, this technology is widely available across to the masses. You can too start your own OTT app.

But before that, here’s a list of points you need to look at:

  1. Start creating or leasing content to have a bank of high-quality videos that are ready to be uploaded, so that the audience has enough content to consume, once the app is up and running.
  2. An OTT app can help you get the audience you have always been looking at. If you have an established YouTube channel is a plus, but if you are looking at users who trust and have faith in your content as they engage more it’s an OTT app and website you are looking for.
  3. Millions of viewers are cutting the cord, there is a surge in the number of new OTT businesses coming up

In such a competitive scenario, having planned investment for a well-structured marketing strategy will never go wrong.

OTT Checklist- Points to check before launching

OTT Checklist

1. A Strong Brand Identity

The business should have a clear brand message and identity to establish a connection with the audience. Having a consistent theme to the content helps to attract the right audience. It’s the feeling of relatability that makes the audience want to interact and engage

2. Proven Engaging Content

As very famously and rightly said by Bill Gates,

“Content is always the king.”

We believe so too! Content is the most important factor which makes the OTT app successful and enables the audience to engage and subscribe.

Your business should have a proven strategy of content creation for which the audience is ready to pay for. The audience should feel that they are benefitted in any way from being able to stream the content.

3. Consistent Design and Branding

We associate a lot of brands just by seeing their color schemes, or logos. That’s because their marketing strategy deliberately creates consistent branding which leads to a strong recall value. Identifying and using the brand’s colors, design aspects, logos, consistently throughout all the devices helps to make the experience more seamless and also makes the OTT service to stand out and leave an impression on the audience.

4. Continued Content Creation

Having a bank of content and continued content creation strategy keeps the business smooth in the long run and helps the business grow seamlessly.

5. Pricing Strategy

An effective pricing strategy is essential when it comes to OTT apps and websites. In today’s increasingly competitive market, with one OTT-business offering cut-throat pricing than the other, it is inevitable to have a strategic and competitive pricing strategy in place. Well-planned pricing and the billing cycle of the payments should be devised in advance. It should make the customer feel that they are getting their money’s worth against the content provided. Which can eventually help in growing and sustaining the audience base

An effective pricing strategy is essential when it comes to OTT apps and websites. In today’s increasingly competitive market, with one OTT-business offering cut-throat pricing than the other, it is inevitable to have a strategic and competitive pricing strategy in place. Well-planned pricing and the billing cycle of the payments should be devised in advance. It should make the customer feel that they are getting their money’s worth against the content provided. Which can eventually help in growing and sustaining the audience base.

Why should you have your own app?: Benefits of OTT for you.

OTT services have changed the way we consume content. The consumers are loving the a la carte way of consuming content at highly competitive prices. But what are the business owners getting? Why should they invest in starting their own OTT app?

Let’s look at how launching the OTT business will benefit your business:

1. Direct to Consumer

Don’t we sometimes just stumble upon some of the content on our Netflix homepage, without actually having to even search for it, or reading the reviews for it?

It has all become possible because of the seamless technology of the OTT apps which can keep a record of each user’s streaming via their accounts and suggests more relevant content as per that.

Launching your own OTT app will enable you to understand the taste and preference of your audience better which would help in creating better and more relevant content for them resulting in increased views and engagement time. As you have direct reach to your consumer, you can also notify them about the new content/merchandise via push notifications or emails.

Don’t we sometimes just stumble upon some of the content on our Netflix homepage, without actually having to even search for it, or reading the reviews for it?

It has all become possible because of the seamless technology of the OTT apps which can keep a record of each user’s streaming via their accounts and suggests more relevant content as per that.

Launching your own OTT app will enable you to understand the taste and preference of your audience better which would help in creating better and more relevant content for them resulting in increased views and engagement time. As you have direct reach to your consumer, you can also notify them about the new content/merchandise via push notifications or emails.

2. Consumer Reach

OTT is very rapidly becoming mainstream, which foresees an exponential increase in audience size as this sector heads towards global expansion.

As per a recent study, OTT services are predicted to reach 650 million subscribers by 2022! By launching your own OTT screen, you can tap into the immensely growing market of consumers looking for more OTT services and ultimately increase your consumer reach in multi-folds

OTT is very rapidly becoming mainstream, which foresees an exponential increase in audience size as this sector heads towards global expansion.

As per a recent study, OTT services are predicted to reach 650 million subscribers by 2022! By launching your own OTT screen, you can tap into the immensely growing market of consumers looking for more OTT services and ultimately increase your consumer reach in multi-folds

3. Monetization

There has been a rapid growth of OTT revenue since the Cord-cutting boom in 2008.

Consumers are now more than willing to pay for good content and to subscribe, not to one but multiple OTT screens.

As per reports, In 2019, consumers spent a whopping $39 billion on OTT app subscriptions.

You can also monetize your content in many ways, by charging the subscribers, ads, or even selling merchandise. Not only that, Starting an OTT business gives you complete freedom over your pricing strategies, leading to consistency in income. Now by looking at all the numbers and facts, we can say that there is no better time than now to start monetizing your content and maximizing your revenues.

Conclusion

OTT apps are the future of how we consume content.

It has grown rapidly over the last few years, And more billions are being invested as we speak. There is no sign of stopping anytime soon.

So, If you’re considering investing in OTT for your business, this is the time. It is a growing, challenging, and ever-changing service, as it adapts to the growing consumer patterns and demands but there is one certain thing, there is no turning back now!

Enveu Team

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