If you’re looking for the future of television and streaming services, look no further than OTT. The powerhouse technology behind power-players like Disney+, HBO Max, and, of course, Netflix, OTT has introduced the world to a new way of accessing movies, shows, and content.
OTT empowers viewers to get the programs they love without the expensive (and often very restrictive) options they receive from cable and satellite TV providers. That’s because OTT allows viewers to get their streaming directly over the internet using their Wi-Fi internet connection.
With OTT, there’s no need for a cable provider and no need for a satellite connection. Users can stream their shows and content directly to their devices, including smartphones, tablets, and smart TVs with Apple TV or a ROKU Box. In short, when you create an OTT platform, you give your video customers an easier, faster, and more affordable way to stream.
How Can OTT Help You Grow Your Video Business?
If you’re in the online streaming service industry or trying to break into it, OTT should be firmly on your radar. It’s one of the best ways, by far, to grow your video audience. OTT video streaming apps for mobile devices and TVs offer a solid, actionable option to get your content out there and connect with millions of potential viewers.
What is OTT, Anyway?
OTT stands for Over The Top. It’s an acronym based on the fact that you go “over the top” of cable streaming and satellite providers when you use an OTT app. The way it’s done is that your video content streams directly over the internet using a primary Wi-Fi network, the same one that delivers the world wide web to billions of users around the world. By going over the top of cable and satellite providers, users can save a lot of money, a significant financial benefit that’s hard to ignore.
Why Should OTT Matter to a Video Content Creator?
Unless you’ve been living under a rock in the desert, you know that streaming on-demand is enormous today. The truth is, consumers today expect to watch their favorite online content whenever they want, wherever they want.
The problem is, watching content on a laptop, mobile phone, or tablet isn’t always ideal, especially if you’re home and have a 55-inch TV nearby. That’s where an OTT app comes in very handy. You can send your video content to your TV and watch it on a much bigger screen.
Now, here’s the thing; over 50% of homes in the United States already use OTT apps through their Wi-Fi connections. The average watching time? One hundred minutes per day per household, which is growing fast. Indeed, it’s predicted the industry will reach $275 million by 2025. As a matter of fact, 40% of the homes using OTT apps are already using them through their ROKU or Apple TV device.
OTT Apps Appeal to the 3 Factors Consumers Demand Most
Considering all the factors, including a tremendous growth rate, it’s easy to see why OTT apps are one of the best ways to grow our video business. OTT video apps appeal to the three factors consumers want most:
- Low cost. Let’s face it, cable and satellite subscriptions are expensive, especially if you have multiple connections. OTT eliminates this expense for viewers, allowing them to access their TV and movies without them.
- Access from anywhere at any time. With OTT apps, your viewers can watch your content from anywhere, at any time, using any device they desire. This easy accessibility is one of the most significant benefits of OTT apps.
- Control. This might be the most significant benefit for users because they can control the programs they want to watch most. Indeed, many consumers are more than willing to pay extra to customize their viewing and get multiple OTT subscriptions to do so. If you’re a video content creator, that’s huge.
The thing is, viewership patterns and behavior are already changing and fast. It won’t be long until OTT apps aren’t just something extra that people enjoy, but something essential that people need. In other words, not having your video content streaming on an OTT app will be a definite downside that could hurt your video business.
The 3 Main OTT App Business Models
There are three main business models that video content creators use to monetize their channels and generate revenues. They are:
TVOD (Transactional Video on Demand)
Straightforward and simple, with TVOD, your customers can either buy or rent videos and shows one at a time. That’s why TVOD is often referred to as pay-per-view (PPV) or pay-per-download (PPD). This is the best OTT app to launch if you want to sell a single video, a one-time sporting event, or a film debut.
SVOD (Subscription Video On Demand)
SVOD is a recurring-fee OTT model that’s similar to a subscription service like Netflix or Disney+. Once a viewer pays, they get unlimited access to any and all content the platform provides and can stream content as many times as they desire. This is the most efficient of the three methods, although it is prone to customers leaving. Also, the higher entry barrier can be problematic for some consumers.
AVOD (Ad-Based Video On Demand)
This OTT business model lets viewers watch for free but forces them to also watch advertising in the form of video ads, sponsored content, and so forth. The benefit is that there’s no barrier to entry with AVOD, allowing new viewers to check out (and hopefully get hooked on) your video content. The downside is that, to generate enough revenue, you need a substantial audience. (And, of course, the average user hates ads more than they hate their mother-in-law.)
Whether you use ready-made solutions or prefer to contact a software development company for creating an OTT platform, it can be a major boon to your video content business. There is almost an unlimited number of ways you can take advantage of OTT apps to generate revenue with your videos.