What is OTT? How to make money from OTT platforms?- BeCreatives

Streaming is rapidly overtaking traditional cable as the number one option for consumers. In fact, by 2024, more than 46 million homes are expected to "cut the cord" by abandoning cable in favor of streaming and over-the-top (OTT) platforms. Furthermore, watching on mobile devices like smartphones is a big part of that market; 30% of premium content seen on phones in 2020 - up from 23% in 2019. This trend is not slowing down, so now is the time to enter the OTT market. But how does the OTT platform work? We'll go over the basics here, so that you can decide whether you should build your own OTT platform or not.

What is OTT?

Instead of streaming or serving on-demand video via the Internet, over-the-top platforms eschew traditional cable or broadcast infrastructure. Think about Netflix or Disney+, for example. Using an OTT service, content providers can provide us content more efficiently and at a lower cost than traditional broadcasters.

In turn, users can consume content on multiple devices such as tablets, TVs, phones and streaming devices such as Chromecast or Roku. Users can be stream content video-on-demand or tune into live streaming broadcasts.

Creation and Setup

Creating an OTT platform can be as simple as working with a partner who specializes in building OTT platforms like MAZ. Without a partner, there's some work to be done, but it's still not as resource intensive as building a broadcast network. Your development team needs to write an app using an SDK like Android Studio or Xcode, hook up player and video API and choose a hosting platform. This can be an in-house server system or a cloud-based solution.

The fastest and more robust method is to work with a make-your-own-service provider like MAZ.

Once you've got the structure, all you have to do is upload content to your library, tell your audience, and decide how you'll monetize.

Monetizing OTT

How OTT platforms make money largely depends on the business serving them. The flexibility of the medium allows for creativity and lets you decide how to best serve your audience and benefit. That said, there are some common monetization methods for OTT:

• Ad-Based Video On Demand (AVOD) -Great for those customers who want free content. Platform owners make money by selling highly targeted advertising time in-line or as banners.

• Subscription-based Video on Demand (SVOD) -the most common method as it generates the most money per subscriber. Users can get unlimited access for one price, or you can set different price points and offer different tiers of service – even the lower tiers include ads.

• Transactional Video on Demand (TVOD) - aka Pay-Per-View. Using tvOD, platforms charge customers a one-time fee for renting or purchasing content.

 

Of course, you are not limited to one way of earning from your OTT platform. Many OTT providers offer a free tier for users to get free content and get familiar with the platform. They can later buy into a subscription to remove ads or gain access to premium content available in the free version.

Pay-per-view style events may be promoted from time to time to supplement revenue from subscriptions and/or ads, and since you have control over the ads displayed, you may sell products or sell other platforms. Can use that functionality for boost as well.

Step into OTT

If you are considering an OTT platform, there has never been a better time than this. Streaming and video on demand are on the rise, and profitability isn't hard to come by. Not to mention, building your own OTT platform has never been easier.

Benefits of OTT Devices

OTT services are beneficial for both advertisers and consumers. For an example, OTT apps offer more options for payment and advertising strategies than traditional methods. So we can say it is best to make money also.

Other benefits are:

customer segmentation. In traditional advertising, marketers did not know who was listening to their ads on the radio. But with OTT, even podcast apps provide insights including episode retention, device type, and geography.

Increased efficiency. OTT tools have helped to save time and improve delivery by eliminating middlemen, such as in the case of ad space and stock buying.

final thoughts

OTT has disrupted many industries and brings a lot of convenience in our lives. In the marketing world, marketers can now market their products to the target audience. This means higher returns.