Over the last few decades, people’s viewing habits have completely changed. The tv era has come to an end. Cable companies have gradually lost subscribers to OTT streaming services such as Netflix, Hulu, Disney Plus, YouTube TV, and others, resulting in a dramatic shift in television viewing habits.
OTT Platform Statistics and Development
So, are you interested in a slice of the OTT pie? Here are some statistics on its growth rates and other metrics to consider.
- Global Statistics: When compared globally, the OTT sector in the United States generates the most revenue, estimated to be around US$121,800 million this year. However, the OTT platform’s revenue will reach $2.89 billion this year.
- OTT and Television: OTT will grow by 22-24 percent by the end of the decade, while television content will decline exponentially.
- User Penetration: In the near future, OTT brands will see an increase in viewership. By 2026, the number of users will be around 509.7 million, with a user penetration of about 35.0 percent
Reasons Why Invest in a Branded OTT Platform/App
The face of modern media consumption has changed more than ever before. Streaming services are getting more popular, with more people opting for them over traditional cable television. There are countless benefits to creating OTT platforms. Customers only need high-speed internet access and a connected device that supports apps or browsers to stream OTT.
Here’s how building an OTT platform can help your business:
# Increases Revenue
The revenue in the OTT business model grows at a 10.4 percent annual rate, increasing the revenue forecast to $251 billion by 2025. Advertisers are increasing their budgets for ad-based streaming services year after year. Launching a streaming service allows you to monetize your content in various ways. However, there has never been a better time to launch your OTT streaming service than now to maximize your revenue potential.
# Increases Audience Base
Millions of people use their phones, computers, and smart TVs to watch videos. You can, however, reach a large audience base to build the best OTT platform. It is clear that mobile and smart TV devices are here to stay, and launching your OTT business on these platforms will allow you to reach a larger audience.
# Builds Direct Relationship With Fans
When you launch your streaming service, you can understand your audience better. Knowing your target audience also helps you create more relevant content. Because your apps allow you to interact with your audience directly, you can notify them via push notifications/emails whenever you create new content.
# Improves Overall Margins
There are no middlemen involved, so your margins will be much higher when you start OTT business. Unlike YouTube or traditional tv, you don’t need to share 45% of your revenue, and there are no uplinking and downlinking fees, commissions, or distribution fees to share. The overall cost of launching and maintaining your OTT business will be far less than what you would pay to build OTT platform on your own.
# Manages Content Effectively
When you rely on one of the top OTT platforms, you will have complete control over which one to deliver. It enables you to express your creativity while adhering to your content diversification strategy. You’ll have a better understanding of your target audience and will be able to focus on creating high-quality videos that meet their needs.
# Stream on Multiple Devices
When your branded OTT app is available in a platform’s app store, it increases brand awareness among potential subscribers. App store visibility puts you on the OTT map and increases the discoverability of your brand among end-users. For example, if you release your OTT app for multiple platforms such as Android, iOS, Android TV, Roku, and Apple TV, your users will be able to access your app directly from the respective app stores and start streaming.
# Secure Content Streaming
Millennials are constantly on the move. By launching your own branded OTT apps, you entice your subscribers to watch/listen to your content on their preferred devices while traveling by bus, metro, or car. All you have to do is – open the app, tap on the content, and plug in their headphones. That’s it! Users can also access and navigate your OTT app more quickly, saving time and energy.
# Audience Tracking
Nowadays, it is easier to provide a more personalized experience to end users and track audiences via an OTT app. When you create an OTT app with the help of OTT providers, your end users can set their preferences for which customized content is delivered to them when they launch the app. You own an OTT channel, so you own the data as well. You have complete control over every aspect of your platform. You won’t just see likes and comments, but you’ll also get detailed information.
To sum it up, the future of television is over-the-top (OTT). So, if you do your homework, build a marketing plan, and, most importantly, generate consistent and high-quality content for your target audience, starting your OTT service is a viable solution.
Want to know how to start an ott platform, or you are a content creator looking for an OTT platform provider to help you launch your OTT service in the market? We can help with OTT Platform Development. Reach us to know more!