7 Key Elements that Propel the Growth of a Video Streaming Business
Published On November 6th, 2024 How To
Today’s digital landscape is engulfed with videos, the most prominent and convincing means to deliver an idea or content. In fact, a recent survey suggests that around 80% of the Internet traffic is contributed by video content.
The viewership being this magnanimous, it is no surprise that people are not just inclined to traditional broadcast mediums, but have moved past conventional pay TV packages.
Video streaming has taken the viewership pattern by storm wherein OTT platform is the driving factor for 41% of the total consumption.
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The Hyper Growth of Video Streaming Over the Years
Audiences’ increased demand over convenience and content variety are the prime reasons why the online streaming economy is climbing at an impressive CAGR of 29.4% from 2021 to 2027. However, this impactful change inclination towards over-the-top services are mainly due to
- Urbanization
- Increased Internet penetration
- The rollout of 5G
- Pay-worthy content
- Fresh and diverse genres
- High-quality videos
- User-friendly interface
- Flexible plans
These attributes have urged businesses, investors, distributors, and even mainstream television channels to set foot into the video streaming ecosystem by means of both on-demand and live content delivery and distribution to global audiences.
Moreover, the recent pandemic that played a rather significant catalyst in steering the limelight on streaming platforms, spiking the global OTT viewership by 10%.
The market needs & expectations being this colossal, the OTT players of today have no choice but to stand out in terms of video quality, security, and delivery, making us club the most essential features that kindle unprecedented online video platform outgrowth in the years to come.
7 Key Factors that Power a High-Performing Video Streaming Business
A video streaming services that aims to span global boundaries ought to strategize its tech infrastructure based on the following attributes.
1. Quality of the Videos Intended for Distribution
With millions of dollars being spent on creating rich content, it comes as meaningless when the output quality is compromised upon.
Expensive equipment, pre-production costs, post-production costs, and a lot other hidden expenses become fruitful only when the end video that a user plays is of superior resolution.
Broadcasting quality videos is what a successful streaming business is all about. Especially, when it comes to enticing global audiences to turn heads towards your app/ website, it is more than necessary to deliver content of utmost quality that offers an ideal viewing experience.
What should a streaming service do?
- Check the quality of your source files
- Integrate an HD/ 4K video player
- Optimize your encoder settings
- Ensure your platform works on adaptive bitrate streaming (240p, 360p, 480p, 720p, 1080p)
- Employ a robust CDN for low-latency/ instant playback
2. Bandwidth & Storage Prerequisites
The competitiveness of OTT platform providers has made streaming players keep acquiring and producing original content. With a constantly growing library, it is also necessary that the service’s storage capacity is taken care of.
And this is exactly why video businesses are opting for cost-effective cloud solutions to store and manage their video repository rather than on-premise servers.
It is vital to note the
- The volume of your current library
- Intended video quality for distribution
- Future plans to upscale
- Size of your audiences
- Type of video distribution (on-demand/ Live)
- Content vertical (Entertainment, E-Learning, Sports, Enterprises, Fitness, Religious Streaming Services)
In most cases, unlimited storage, and bandwidth is what is recommended to ensure high-quality streams to a widening landscape of viewers.
3. A Seamless Video Hosting Infrastructure
When it comes to video streaming, there are two options a publisher can go ahead with.
On-Premise
Raising the complete infrastructure from the ground base (Hardware, Software, Transcoder, Content Delivery Network) is quite an expensive, tedious, and expensive process of setting up your streaming landscape. However, it is great in terms of ownership and security, to say the least.
Cloud
On the other hand is cloud, wherein your infrastructure is completely remote, works on a license fee, and encompasses economical scalability options that is equally secure for your streaming business.
Partnering with a online video platform providers like CONTUS VPlayed that supports both hosting styles is advantageous for an OTT service that seeks to grow since the migration to either of them would be seamless.
Recommended Read: Cloud Vs On-Premise Video Hosting: Which Should Businesses Opt for?
4. The Right Monetization Game Plan
At the core of any successful streaming business lies its efficacy to video monetize wisely. Choosing a platform with varied revenue models is as important as curating great content.
Leverage one of these ways to generate great profits
| Subscription Video on Demand (SVOD) | Best source of passive income using a recurring fee on a weekly/ monthly/ annual basis |
| Advertising Video on Demand (AVOD) | Easy method to deliver free content to your viewers but get paid from advertisers |
| Pay-per-View (PPV) | Works best with seasonal/ original content, also called transactional video on demand |
5. DRM-Backed Video Distribution
One of the major threats that obstructs the growth of a video distribution business is its content being stolen, copied, or duplicated by black market intruders.
In other words, piracy projected to cost the OTT economy a devastating $52 billion by 2022, combating copyright infringement is the priority to propel growth in terms of both a loyal viewer base and revenue.
This is why DRM (Digital Rights Management) should be incorporated into the streaming set up to
- Impose access control restrictions
- Secure video streams from unauthorized access
- Prohibit inadvertent sharing
- Manage digital rights
And, with a DRM-fashioned video distribution architecture, streaming services can make sure they broadcast only to the intended audience confined to the appropriate region, device usage, subscription plan, etc.
6. Expansive Streaming Rights
The global OTT market is spanning at a never-before growth rate with revenue projections surpassing $1039 billion.
And, the urge to distribute content beyond geographical boundaries is the key reason for streaming services to soar in popularity.
By acquiring streaming rights for the most popular pieces of content like movies, TV shows, hit franchises, sports events, etc, across various countries, broadcasters become likable, gaining the trust of viewers both regionally and internationally.
To achieve this feat, a streaming platform should be in partnership with a global CDN that spans across different regions for low-latency video delivery that is efficient in handling network congestion whilst promoting faster and buffer-free playback.
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7. Personalized Look, Feel, & Offerings
Everything from content and UI to the payment process, personalization is something that can make or break the image, likeliness, and eventually the growth of a streaming service.
The more personalized your platform is, higher are the chances the audiences will stick to your service, no matter how many new entrants penetrate the market.
Viewer personalization can be instilled upon
- Video Content
- User Interface
- Recommendations
- Ads
- Retention Plans
Especially, with the soaring advancements in machine learning and artificial intelligence, personalized viewer experiences are easier to offer.
Wrapping up,
Growth means different things to different businesses.
Subscription SVOD platform, and increased user engagement is how a movie platform grows whereas real-to-life viewer experience is what matters in a faith-based streaming app.
No matter what your niche is, only when the most significant factors like video storage, online video hosting platform, monetization, security, personalization, and scalability are considered and incorporated in their best video streaming solution can outperform its competitors and showcase unprecedented growth right from inception.
