9 Reasons Why You Should Have an OTT Service That Will Benefit Your Business
Thanks to the housebound audience craving entertainment content, the last few years have been great for the worldwide video business. According to eMarketer, the number of digital video viewers in Asia-Pacific region will exceed 2 billion by 2022.
Due to the Covid-19 pandemic, many people have been forced to work or stay at home following the guidelines issued by the government, creating a massive hunger for video consumption. According to a research from SpotX, 70% of consumers across APAC countries consume online video at least once a week. Regarding the increased video streaming, competition has developed in the already crowded territory, with many media companies and new players fighting for space to gain more viewers.
What Exactly Is OTT?
OTT refers to Over-the-top, It is a method of providing video content over the internet instead of the traditional satellite provider or a cable network. OTT content is provided to the user’s device without the need for a cable connection. Here are some examples of common OTT services: on-demand video streaming like Netflix, Viki; Social video platforms like Youtube, Snapchat; Livestreaming broadcast like sports events or live concerts; online chat applications like Skype, Whatsapp. Typically, viewers will require the appropriate device and a stable internet connection to access OTT content.
Why Is OTT Important?
It’s an inevitable shift. Today, media consumers prefer to access content through OTT websites or apps. An interesting study by Forbes shows that a consumer of OTT video owns at least three devices they can use to access OTT content and subscribe to at least three OTT services.
Disruptive technology has changed the way users consume content. They want to have everything they want when they want. They want access to content on whichever device they can access and whenever they feel like it. Convenience is a huge factor in consumer trends and this is what OTT media provides.
Where there are people, there are business opportunities. Traditionally, video streaming services are only considered for media or entertainment domain. However, today, many industries (fitness, education, entertainment, etc.) can experience growth by starting their own OTT service. Businesses with their own branded OTT websites/apps experience significant returns and staggeringly growing user base.
How OTT Can Benefit Your Business ?
OTT platforms can be an excellent business model to reach audience. OTT has been proven to drive real-world results for businesses, and they can do the same for your business. Here are some benefits that OTT services can yield for your business:
Speak directly to your audience
Having your own OTT business means that you can have your dedicated channel to provide content and engage with your audience directly. You have full control over the brand and the style, you can manage your content and make it address the right audience. Unlike Youtube, you can finally deliver ad-free content. If you have a direct sponsorship, it’s also your call to decide how you want to communicate with your audience.
Easy Content Delivery and Management
Video is delivered through an open network in an OTT platform without investing in carriage negotiations and infrastructure investment. Also, it requires only a compatible device to connect to the internet to work. Because of that, OTT services are pretty easy to deploy, maintain, manage, and update than other media services such as cable.
A Wider Reach
According to a research report by Roku projects, by the year 2025, approximately 60 million American households will use OTT services. Only time will tell, but if the prediction is accurate, OTT service providers will have an increasing number of consumers who have switched from traditional TV.
OTT service providers usually have complete ownership to use any video monetization model of their choice for their content. OTT services work on three different types of models:
- Ad-based video on demand (AVOD): The model generates revenue for providers by selling ad opportunities to companies.
- Subscription-based video on demand (SVOD): This allows OTT service providers to offer ad-free entertainment to their consumers and earn through customer subscription. If you want to create content on multiple topics in your business, you could benefit from the SVOD model. Whether episodes of shows or progressive courses, the subscription-based model is a good fit.
- Transactional video on demand (TVOD): TVOD models allow video consumers to pay for specific content instead of a complete channel or service. It’s much the same as a paid-per-view cable offering. The TVOD model is perfect if you want to sell for high value. It also works great to test product ideas to determine if you have the audience for them.
whether it is transaction-based (TVOD), ad-based (AVOD), or subscription-based (SVOD) model. As a provider, you’re free to use the best-suited model for your content to maximize uptake.
Viewing Control and Data Transparency
If you’re still wondering if your direct-to-consumer service is worth it in the current age compared to distributing content online, the truth is both can be a great combination if you’re looking to reach out to a massive audience. However, don’t forget about the difficulty of managing a distributor-consumer service: what control do you have over your brand, content, audience data, or user experience? Truthfully, none.
OTT services are not just about personalized content accessible at any time; it is also about the experience delivered to the consumer based on their consumption data and viewing habits. In fact, according to a survey, about 86% of online video consumers are willing to pay more for an excellent customer experience. The more control you have over customer experience; the more content you can keep providing your audience.
Wide Variety of Content
In most cases, consumers of traditional pay-tv, like satellite, cable, and IPTV, usually lack a variety of content due to limited catalogs. However, OTT services provide a wide range of original and licensed videos, including linear TV channels, VOD titles, and live streams to choose from. Therefore, consumers can access the contents of their choice and preference.
High Consumer Freedom
One thing about video consumers is that they love to choose their media consumption. With OTT services, they can watch the contents they like at whatever time and on any device of their choice. Because of its wider consumer choice, it leads to a broader user gain and content engagement: your consumers are more likely to stick to your service when they can access video contents they like.
Same as the advertisement. Most OTT service providers offer customization options for advertisers and consumers to promote a highly customized ad-viewing experience that keeps users engaged while maintaining a market opportunity for outside companies. OTT media services are generally viewed as less disruptive and more personalized than other media forms. In that case, OTT service providers can benefit from the high levels of customer satisfaction.
Cost-effective way to maximize revenue
Because OTT services require only a device to connect to the internet, the cost of deploying the service is reduced. Plus, with OTT streaming, the same video content can be consumed across different devices such as desktop, mobile app, and tablet. Therefore, the prices for these services tend to be more affordable and attractive for the users, which expedites the growth of the paid users.
- More Interaction with Consumers
Because OTT users can view content on their terms, OTT media allows business owners to interact with consumers across a broad spectrum of places and times.
Hopefully, by now, you have a clear picture of why you should consider having your own OTT platform. There is always an audience actively searching for a product similar to yours, and you have the potential to reach and make income.
Ultimately, OTT media can be a powerful weapon for your business. It can offer a wider customer reach than traditional channels, is less intrusive to your customers’ lives, and has high interactivity levels. That is why you should consider incorporating the video channel into your business strategies. If you need assistance to build your video streaming service, reach out to KKStream for OTT platform service professionals, contact us for information!
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