Over-the-top (OTT) delivery has grown significantly in recent years, and it is now considered a mainstream delivery platform alongside pay TV and traditional broadcast. However, the competition for subscriber viewing time and wallet share is becoming increasingly fierce ott video business.
So, if you want to launch your own OTT platform, it may seem challenging. However, you can still get a piece of the OTT pie without competing with Amazon Prime or Netflix. With the right content in place, there are no barriers left to OTT distribution. Furthermore, most previous OTT barriers are crumbling, so now is an excellent time to build an OTT platform.
Would you like to get a piece of the OTT pie, or want to know how to start an OTT business? Here are some statistics you should know about OTT Business Model, including growth rates.
- In 2022, revenue in the OTT Video segment will reach US$275.30 billion.
- 65% of video streaming occurs on mobile and TV apps rather than browsers.
- Revenue will grow at an 11.60% annual rate (CAGR 2022-2027), resulting in a market volume of US$476.60 billion by 2027.
- By 2027, the number of users in the OTT Video segment will reach 3,508.0m.
- User penetration will be 35.7% in 2022, rising to 44.1% by 2027.
- By the end of 2022, OTT services will grow by 26%.
- In 2022, the average revenue per user (ARPU) in the OTT Video segment will reach US$101.20.
With this, let’s move on to the reasons to choose OTT business.
Reasons Why Start an OTT Video Business in 2022
So, what makes an OTT business plan superior to a linear TV business plan? Let’s look at the benefits of using OTT platforms.
# More Convenient
VOD is the only service that allows customers to watch their favorite shows and videos at their convenience and in their preferred location. There are no restrictions to watching videos; customers can watch as many videos as they want, whenever and wherever they want. Furthermore, unlike traditional TV operators, which bind you to long-term contracts that are hard to break, VOD streaming services have no such contractual obligation. As a result, you can cancel your subscription any time by clicking on a button.
# Increases Revenue
Ad-based streaming services are rapidly expanding. Global AVOD revenue will nearly triple from $21.9 billion in 2018 to $56 billion in 2024. Therefore, advertisers are switching their budgets from TV to OTT businesses, and this trend will continue in the coming years. Launching your ott platform business plan helps monetize your content in several ways. You can monetize your service with ads, paid ad-free subscriptions, merchandise, or a combination of these three models.
# Increases Customer Base
Millions of people use their phones, computers, and smart TVs to watch videos. Therefore, developing your own OTT service will enable you to tap into this massive user base. Mobile and smart TV devices are undoubtedly here to stay, and launching your OTT business on these platforms will allow you to reach a larger audience.
# Strengthens Relationships with Your Target Audience
When you launch your streaming service, you will gain a better understanding of your target audience. Knowing your target demographic enables you to create more relevant content. If you know the top five videos that users have watched in the last 30 days, you can create relevant videos to increase video views and watch-time.
# Enhances Brand Visibility
When your branded OTT App is available in the app store of a platform, it increases brand visibility among potential subscribers. Being visible in app stores (ott platform types) puts you on the OTT map and increases your brand’s discoverability among end users. For instance, if you release an OTT app for multiple platforms such as Android, iOS, Android TV, Roku, and Apple TV, your customers can immediately download it from the respective app stores and start streaming.
# Source of Passive Income
SVOD is a “subscription model,” so you’ll have the same customer month after month with your subscription package. When people see that you have a collection of video content to inspire them, they can’t help but buy it from you at a premium price. The more money you earn or reinvest in your business, the higher the quality of your content/work. After all, if your goal is to help your customers through your platform, your customers will help you grow your platform as well.
# Insight of Your Content’s Variety
When you build your own VOD platform, you will have complete control over your creative content. Without compromising your creative vision, you are free to create whatever you want, for whomever you want. It is a benefit of the VOD business. People are constantly looking for creative content on the internet, and if you can create that type of content, this is the business for you.
# Unlimited Customers and Accessibility
With a single click, you can access to start OTT platform from any device you’re familiar with, such as a laptop, smartphone, or tablet. When you choose the video business, your customer base is extremely broad because there are no customer limits. Your platform is accessible to anyone from anywhere, and having a large audience means more business or profit.
# Ad-Free Entertainment
We all know that while watching TV channels, advertisements always appear at bad times. You pay for the channels, but you still have to watch the advertisements. Once you pay for a premium membership, you will get access to ad-free entertainment. Customers are drawn to VOD because it saves them time.
Summing Up
OTT is the future of television. So, if you do your homework, develop a marketing strategy, and, most importantly, generate high-quality content for your target audience, starting your OTT service is undoubtedly a viable option. Furthermore, understanding the most recent industry trends will point you in the right direction.
