A video streaming service is a platform where you publish your content and use monetization functions to generate revenue. Viewers switch to such services to enjoy varied videos and other perks these platforms have.
The video streaming industry is growing. Businesses launch their own OTT platforms and receive a lot of profits.
Let’s talk a bit more about why it is a promising business idea to launch an OTT video streaming service.
Reasons Why You Should Launch a Video Streaming Service
There are millions of reasons to create a video streaming service. Let’s explore some of them.
#1 OTT platforms have everything for revenue-generating
OTT platform is a video monetization platform. OTT companies strive to embed functionality so that you make money straight off.
Companies like Setplex have everything necessary to arrange end-to-end video streaming: OTT server software, middleware, OTT apps, CDN, and rich functionality.
Monetization features are the most straightforward when it comes to generating revenue. There are three main money-making models:
- Advertisements. A content provider runs ads on the videos and earns revenue from this. In this case, access to content is usually free of charge.
- Subscriptions. A content creator sells access to videos for a certain period of time – a month or a year. Viewers purchase unlimited access to the content. At the end of a purchase period, they can cancel or renew the subscription.
- Pay-per-view. Customers purchase every single piece of content on the platform. They can become regular users or never come back after viewing one video.
Also, some OTT streaming platforms allow content creators to use a hybrid monetization model. Providers combine several of the approaches described above. For example, you may offer some videos on a subscription basis and a group of videos available at additional purchase.
Now, another hybrid model makes a lot of buzz due to the huge video streaming corporations using subscriptions as a method to generate revenue. They introduce an additional payment plan at a lower price. It is also a subscription but with advertisements. To remove ads, you have to pay more.
Content Delivery Network (CDN) will help you reach more people around the world.
CDN is a network of geographically distributed servers. It can ensure a smooth viewing experience for users. When a viewer requests a video to play, it is delivered from a server. If the server is located far from the user, the transmission can be slow and with long latencies.
With the help of CDN, the videos are delivered from a server that is closer to the viewer. That’s why the transfer can be faster and with minimum interruptions.
Moreover, CDN protects your platform from DDoS attacks when someone wants to disable your service.
Among the essential functions of a video streaming platform for a business are analytics, customization, and features for user engagement. All of these can help a platform provide a better user experience and generate more money.
Built-in analytics shows you the performance of your video streaming platform. You can understand what is working and what needs adjustments. Also, you can understand your viewers and their interests deeper.
When we say features for user engagement, we mean a recommendation engine, personalization functionality, and similar. The recommendation engine can be handy, especially when you have a plethora of videos on the service. People will receive recommendations based on the videos they have already watched.
#2 People cut the cord and switch to streaming services
Viewers cutting the cable TV cord and turning to video streaming platforms is a tendency. People find OTT streaming platforms to be more flexible and convenient to use.
There is no schedule here. Videos are usually available on-demand and on multiple devices, including smartphones, tablets, and Smart TVs. That’s why they can consume content at any time and anywhere they want.
Moreover, video streaming platforms invest a lot in creating content. People appreciate them for their various and engaging videos. They can binge-watch on video streaming platforms.
As a result of this tendency, video streaming platforms have a higher content consumption rate.
Researchers predict that global OTT revenue will reach $243 billion in 2028. Companies realize the potential of video streaming services and launch their own to generate revenue and build stronger relationships with customers.
People, in turn, appreciate the convenience that video streaming platforms offer them. They don’t need to wait for a video to air. They enter the platform, choose the video they want, and enjoy.