OTT platforms are widespread platforms now. More businesses realize their potential and launch video streaming services. They share the video content, self-produced or licensed, and make money on them. They sell access to these videos, and users purchase it as content is what people chase. Content is king, and a video streaming platform is a great way to spread it.
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Why is OTT so popular now?
1 OTT platforms offer businesses a lot of opportunities to generate revenue
Companies that develop OTT solutions for video streaming implement many features for video monetization. For example, OTT solutions often have three monetization models implemented:
- Advertising-based model. In this case, a platform generates revenue by allowing other companies to run ads on it. People don’t purchase access. They use the platform for free, but they watch ads during the video. On video streaming platforms, targeting is more accurate. So, people who are really interested in the product or service can see the ad and buy it.
- Subscription-based model. It is well known due to the services like Netflix. A customer purchases monthly or yearly unlimited access to the platform and its video content. When the purchased period ends, the subscription can be renewed or canceled.
- Transactional-based model. It is also known as a pay-per-view model. Consumers pay only for a video they want to watch now, and the rest of the content is inaccessible. A transactional-based platform can allow people to download videos or limit the time a user can access them.
These are three common monetization models that video streaming platforms usually benefit from. Sometimes, they use a hybrid monetization model. They combine two revenue-generating ways. For example, they can offer people to purchase a subscription and watch videos without ads. Or they can create a package available at a lower price, but the videos include ads.
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2 Video streaming platforms are available on different platforms and devices
OTT platform providers usually offer OTT application development for different devices, including smartphones, Smart TVs, tablets, and laptops. So, people can access your service at any time they want. They need to open an application on a smartphone and enjoy videos.
The multi-platform opportunity allows people to watch videos on any platform they want or have. They don’t need to buy additional equipment to access your platform (except set-top boxes that can be required sometimes).
Moreover, the family fights over a remote control are over. Now, each family member can have their own device with an individual profile and watch videos on it.
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3 Video streaming platform providers can reach people worldwide
Videos on streaming platforms can be available from anywhere in the world due to a content delivery network (CDN). Due to the CDN, videos are delivered not from the original server where they are stored but from the server that is located closer to a user.
A content delivery network reduces latencies, and viewers can watch videos without interruptions. By providing a smooth viewing experience in any part of the world, you can increase your revenue as you will reach more people. Don’t forget about adding subtitles and localizing content.
Final Thoughts
OTT video streaming platforms are taking over the market. Traditional television, like cable or satellite, is getting obsolete. They don’t offer so much flexibility and convenience as streaming services. That’s why they are on the rise now, and it seems like they are not going to be dismissed.