3 Essential Questions You Need to Consider When Launching an OTT Business


Launching a video streaming business requires some thinking to be done. Content providers need to decide on multiple things. For example, choose the monetization model or solve the on-premise vs. cloud dilemma. Let’s observe some essential considerations when starting a video streaming business.

3 Essential Questions You Need to Consider When Launching an OTT Business

Here’s the list of these questions:

#1 How to generate revenue?

Generating revenue is the primary goal of a video streaming business. Luckily, there are multiple ways to make money in the industry. The following models are widespread:

  • AVOD monetization is about allowing people to consume your videos without payment. Instead, viewers watch ad commercials during the video playback.
  • SVOD monetization is when you charge a monthly or yearly fee from customers.
  • TVOD monetization is different from subscriptions. In this case, people pay for every single piece of content they want to watch.
  • Hybrid monetization allows providers to combine several models described above.

These are common revenue-generating models in the video streaming industry. However, your capabilities will depend on the solution you select for running your business. There are many of them in the market, and they all offer different functionalities.

#2 How to ensure the best quality of experience (QoE)?

Retaining viewers on the platform requires some measures to be taken. People appreciate watching videos without long latency and delays. They tend to switch to other streaming services. To avoid such situations, you need to ensure a smooth quality of experience for them.

Utilizing a transcoder and adaptive bitrate streaming can help you provide a seamless viewership. Adaptive bitrate streaming (ABR) allows you to ensure a smooth viewing experience as the quality of a video is adjusted depending on the network conditions.

When the connection is strong, the picture quality is high. But if the connection drops, the video quality is lowered, but the video continues playing.

A transcoder will create multiple copies of the same video so that it can be played on any device, whether a smartphone or a Smart TV.

Also, you can provide a better experience for viewers by utilizing services for engagement. For example, a recommendation engine offers recommendations to viewers based on their viewing history. As a result, people see videos that suit their interests.

#3 How to grow your video streaming service?

They say that three main components are key to the success of a video streaming business: technology, marketing, and content. So, you need to invest in these three things to grow your business.

Content is king. It is the first thing that viewers chase when selecting which service to subscribe to.

Technology will help you ensure a better viewing experience for your audience. The way you operate and manage your business will depend on your choice of the technology stack. Make sure you have a middleware with advanced features, CDN, applications for all devices, and an encoder/transcoder.

CDN and applications can help you reach more people. By providing applications for different devices, you offer the ability to watch videos on any platform viewers want. They don’t need to invest in new gadgets in order to access your service, but they can use those they already have.

CDN (content delivery network) helps you deliver videos anywhere, ensuring a smooth viewership. For example, albanian TV app TVALB can reach its audience in USA and Canada.

Marketing will help you attract new users to your platform.

Final Thoughts

There are many essential issues that should be decided before the launch. You need to decide on the pricing model, content, audience, and many other factors. Research meticulously before diving into anything.




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