OTT platforms are these video streaming platforms like Netflix. They allow viewers to watch many videos that are not generally streamed on traditional television. They bring a lot of revenue and other benefits to companies. There are multiple reasons why OTT platforms are so popular. Let’s dive into details.
Reasons OTT Platforms Are On The Rise
OTT platforms bring a lot of revenue to companies.
Video streaming platforms are created for the sake of bringing revenue to businesses. You can create video content and sell access to it to your audience. There are a lot of elements that contribute to your revenue growth. For example, three common monetization models:
- The AVOD monetization model allows a provider to generate revenue by advertising. So, third-party companies run their ads on the platform and pay a provider for that. They “buy” platform viewers’ attention. In exchange, people are not charged a fee. They can watch videos for free.
- The SVOD monetization model allows users to purchase a subscription once a month or year and receive unlimited access to videos. They can enjoy them whenever they want.
- The TVOD monetization model offers people to purchase only a video they want to watch. The rest of the content is inaccessible. The platform can allow access to a video forever or for several days.
Along with monetization models, OTT platform providers can offer applications and CDN to their customers. Applications can help you cover more devices. And covering more devices can bring you more revenue.
What is CDN? CDN is a Content Delivery Network. It can help you reach viewers across the world. If you are starting your video streaming business in the USA, you can grow and expand your business. With CDN, people from around the world can watch your videos without latencies. As a result, you earn money by going worldwide.
Viewers love OTT platforms for the following reasons:
#1 Video streaming services operate on many platforms and devices.
OTT platform providers work hard to offer a multi-platform opportunity to their customers. They develop applications for different devices, including Smart TVs, smartphones, and tablets.
Having the possibility to access your service on any device allows people to stay in touch with you. Many viewers prefer watching videos on smartphones, but some people love viewing videos on a big screen of a Smart TV.
Consumers can watch your video content while they are sitting in a cafe. Or they can enjoy videos at home. Offering applications for many devices allows people to choose when they want to watch your content.
#2 Video streaming platforms have no schedule.
We should note that video streaming platforms have no schedule if they offer videos available on-demand. It means that people can access them at any minute and enjoy the content. But if you have a lot of live streams, they will have a certain time when you go live.
With no schedule, people don’t need to wait when a video is going to air, as happens with traditional television. They simply visit the service and click on a video they want to watch.
#3 Video streaming platforms offer diverse content.
It is true. Video streaming platforms invest a lot in producing interesting and engaging content despite the sphere. Whether the company focuses on entertaining or educating, it works hard on creating new videos.
The content is more diverse than those that traditional television broadcasts.
Final Thoughts
OTT platforms are on the rise because they offer a lot of benefits to companies and viewers. It is profitable for companies to create content and share it with people, and people appreciate the convenience and usefulness of video streaming platforms. It is a win-win situation.