Why will OTT remain a curious cord cutter in the decades to come?
Published On January 29th, 2024 How To
The number of content creators the past decade have grown in abundance.
With over a hundred new niches belonging to a multitude of verticals, the rising demand for immersive videos are also surging like never before.
Now, this could possibly be one of the major reasons why a large volume of branded OTT apps are making their way into the market.
| Recommended Read: Why are branded OTT apps the future of television? |
And, to derive the big picture of how huge a revolution over-the-top services are making and the impact they have on the rapidly urbanizing audience base, it is vital that we analyze the industry trends and the influence several factors had on the popularity of video streaming platforms over the past decade.
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Cable TV Cancellations Over the Past Year
Audiences’ aversion towards readily bundled television packages further accelerated the past year with the pandemic emerging as a catalyst in the shift in viewing habits.
Traditional cable/ satellite TV and telecom providers witnessed a major downfall with over 38 million US households abandoning their conventional broadcast subscriptions and pay-TV packages, paving the way for a monumental cord-cutting saga.
A recent survey also reveals that over 1/3rd of the American broadband subscribers have stepped foot into the OTT landscape and the numbers are only increasing every passing day.
Now, besides the clan of cord-cutters are other groups of audiences called the “cord-nevers”, “cord-shavers”, and “cord-stackers”.
| Cord-Nevers | Usually a much younger lot who have never subscribed to traditional television packages in the past |
| Cord-Shavers | Audiences who reduce their spendings on pay-TV bundles |
| Cord-Stackers | Those who opt for one or more streaming services alongside their conventional subscriptions |
This illustrates the fact that it is not simply cord-cutters the content owners have to target, but also the other groups of audiences who express their likeliness to adopt video streaming services in addition to their inclination towards regular pay TV.
How has OTT Been for Content Creators this Decade?
The past ten years have been truly instrumental when it comes to the popularity of OTT content.
Video creators, publishers, and distributors have not only grown in numbers but also tried and tested different revenue models, produced innumerous originals, seasonal broadcasts, and franchises, went ahead with personalized offerings, and also remodeled their recommendations in a plethora of ways.
And speaking monetarily, the figures have amplified profoundly with the market revenue exponentiating to $129.59 billion in 2021 from $6.1 billion back in 2010.
Furthermore, some of the most significant happenings in the OTT landscape in the decade that passed are,
- OTT became mainstream
- The number of new OTT services crossed 300 in the US alone
- Lockdown induced boredom further fueled the OTT virality
All the above facts sum up to one particular revelation. It is the increase in the launch of standalone services that has led the OTT sector to pace to a spot that outperforms conventional broadcast mediums.
6 Perks of Getting Started with Your Own OTT Service
Despite third party video hosting services being an enticing forum for publishers/ distributors to launch and monetize their content, self-hosting is something that is growing like never before and for all the good reasons. Here are a few key factors!
– Exhibit a Promising Brand Voice & Visibility
You may have the greatest content ever, but it takes good storytelling and a solid brand voice to take your business to the next level in the OTT ladder. And when you have the luxury of your own service, there are increased chances of
- Storytelling that resonate with your brand
- Showcasing greater visibility without being lost in the crowd
- Developing an exclusive fan base that can convert into a subscriber base
- Creating a brand voice that projects your views and opinions
– Monetize at Your Free Will
The ample flexibility to monetize your content is what makes your own service a highly recommended forum rather than third party best video hosting sites.
You choose to pick the revenue model you prefer, be it subscriptions, advertisements, pay-per-view, or an integrated mix of any of these for increased profits and ROIs.
Besides complete control over the monetary aspects of your OTT business, there is no revenue split that occurs. You can also collaborate, acquire sponsorships, or partner with peers in the industry to amp up your income stream.
– Ensure Advanced Streaming Security
Lower the chances of potential threats when you host your own copyrighted videos. As you possess full authority over how many security protocols you want to incorporate into each layer of your business operations and streaming.
Public video hosting sites might be a hotspot for cyber attacks and content breach. With your own service, you can
- Have complete oversight over your service and content’s security
- Implement DRM measures to validate the authenticity of your users
- Protect sensitive data concerning your audience and their transactions
- Level up your security in line with emerging black-market threats
– Promote Reach & Engagement
User experience is what defines the success of most of the direct-to-consumer businesses of today and OTT is no exception. Only via a self-hosting video service can content owners draft personalized offerings, thus boosting viewer engagement significantly.
By means of your own streaming channel, there are a sea of ways to interact, engage, and convert viewers to lifetime subscribers.
– Garner Advertising Independence
Complete dominance over what’s happening with your content, your service is a key advantage of owning an OTT service. Especially with respect to ads, it is vital to strike the right balance between running appropriate commercials and not being intrusive.
With a standalone service, content owners can,
- Decide what types of ads are relevant to their audiences
- Fix the length of the ads
- Choose where to place the ads (pre-roll, mid-roll, post-roll)
- Analyze what types of ad works best for their target market
– Own the Data in its Entirety
Considering the growing competency every streaming service out there possesses, it is paramount to stand out from the crowd.
This is exactly why deeper insights on video performance, viewer behavior, and viewer preferences count to shape your offerings for maximized results.
While the scope for real-time analytics in a third-party hosting site is limited, complete data on watch through rate, average watch time, minutes watched/ unique device, viewer geography, and a lot other crucial data can be gathered when you have an OTT channel of your own.
Industries that Benefit from Owning a Branded OTT App
With the rise in urbanization, higher Internet penetration, and rollout of 5G, masses around the globe are more inclined towards OTT apps for content consumption and this has fueled several sectors to adopt streaming into their operational infrastructure.
| Movies & Entertainment | OTT is the new normal for filmmakers and production houses to uplift business, maximize audience engagement, and generate sizable profits as the demand for diverse content in entertainment is profusely huge compared to the previous decade. |
| Religious Organizations | Spiritual streaming has gained immense popularity in recent times and with an OTT app that could bring faith-based services in the comfort of a smartphone, or a tablet, religious organizations have stepped into streaming prayers, sermons, and other devotional services. |
| Enterprise & Corporates | OTT apps for internal communication, training, and employee onboardings within corporates have kicked in considering the need for remote businesses in recent times. |
| Educational Institutions &Tutoring Centers | Being able to broadcast more immersive and engaging educational courses, e-learning apps are the ultimate providers of flipped classrooms and virtual seminars. |
| Personal Fitness Trainers | The pandemic-induced lockdown has led to people looking for remote fitness courses paving the way for the sudden surge in the number of fitness OTT apps. |
| Sports Clubs | Via live sports broadcasts and on-demand content, sports apps give audiences the leverage to catch every minute of their favorite game on the go. |
To summarize,
Content is mere content when not leveraged properly.
Only a piece of content that is managed, protected, and streamed effectively will add value to your business and operation, in terms of both engagement and revenue.
And this essentially is possible on a much larger scale only with the presence of an OTT service that is well-equipped with modern-day broadcasting features. Because the decade ahead demands a minimally intrusive, personalized streaming setup and owning a branded OTT app is the first step in conquering the digital realm.
