Digitalization has entered every industry and transformed them; even the entertainment sector is also witnessing a paradigm shift from traditional media to digital platforms. OTT( Over The Top ) has opened a new way to entertainment, and the pandemic has also played a crucial role in the exponential growth of OTT. OTT has become a popular mode of consuming content among all age groups.
So what does OTT mean? OTT stands for over the top and refers to the fact that most of today’s streaming is done over the top of conventional cable. All you require is a streaming box and an internet connection, and you can watch seemingly endless shows, movies, shorts, etc. It’s a simple process in which people create their own OTT channels hosted over the internet, so they don’t have to depend on platforms like YouTube or Netflix.
OTT plays a pivotal role in creators’ life by generating millions of dollars from video content. With OTT, consumers can view content on their devices anytime and anywhere. The businesses associated with the entertainment industry are developing an OTT app for them which has created a new wave that has entered the market due to the shift in consumer demand.
Statista Report States
- The Global OTT market reached USD 45.1 Billion in 2021
- The Global revenue of OTT is projected to reach $275.3 Billion in 2022
- Revenue from OTT is expected to grow at a CAGR of 11.6% till 202
- OTT Video Advertising is the largest segment, with a market volume of US$180.4 Billion by 2022
- The OTT video piece is expected to reach 4216.3 Million users by 2027
- User penetration will be 42.9% in 2022 and is expected to hit 53.0% by 2027.
- The OTT Video segment’s average revenue per user is projected to be US$84.39 in 2022.
Major Reasons Why Your Business Must Have A OTT Platform
OTT offers a plethora of benefits to businesses; with this technology, viewers are free to stream their favourite shows on any device at any time.
Why is OTT a big deal for your business? It offers numerous benefits to your organization like control, accessibility and affordability.
Let’s glance at the reasons why your business must have an OTT platform.
1. Easy Access
OTT apps are easily accessible to audiences who have a stable internet connection. Furthermore, its easy accessibility helps users access it 24×7 without any geographical constraints, thus increasing your customer base.
2. Massive Revenue
Building users’ trust and interest will help you discover a sweet spot where they pay willingly for your app. Until then, you can lower the subscription price or offer discounts per your app’s performance. After this, you’ll soon be able to acquire massive revenue after implementing an optimum subscription fee.
3. Exclusive Content
You can acquire a customer base for your platform when you offer your customers original and exclusive content on your OTT app that they can’t access from anywhere else. This will help you gain new customers also help you boost your revenue and lifetime value.
4. Greater Control
With an OTT platform, you can tailor the content recommendation for the users and mine data collected across users. When you have your app, you get complete control over your site from UI to UX.
5. Increases Conversions
Having apps on known networks boosts your brand’s visibility to prospective users while providing an exemplary web viewing experience. If the content you’re offering to your audience appeals to them, being present in app stores can help you discover.
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How OTT Apps Increase Revenue And Grow Your Brand
OTT helps to get a wider range of audience through numerous distribution channels. Launching your own OTT app and website can also partake in this million-dollar business.
In 2020, the worldwide OTT services market generated $91,881.6 million in revenues.
Will enable you to monetize your business in multiple ways with the best OTT platform provider, including
SVOD (Subscription-Based Video On Demand): In SYOD, viewers pay a flat fee to watch your content on a monthly, quarterly, or annual basis
TVOD (Transactional-Based Video On Demand): TYOD allows you to sell or rent video content to your audience
AVOD (Advertising-Based Video On Demand): AYOD helps leverage ads for both your video content and your audience
Final Thoughts!
Finally, with the recent trends in the entertainment industry, it is evident that days are not far when OTT will surpass television and other mediums in terms of revenue, audience, content and many more aspects. However, being a business in the entertainment industry, it is crucial to take your business to the next level through OTT apps or websites; for this purpose, you can hire an in-house team or outsource a dedicated mobile app development company or leverage an OTT platform provider that can help you propel your business.
