Hackernoon logoHow to Create, Launch and Grow a Profitable OTT Platform? From Start to Profit by@sundar

How to Create, Launch and Grow a Profitable OTT Platform? From Start to Profit

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Sundar Hacker Noon profile picture

Sundar

Growth Hacker & Digital Strategist

Last Updated — September 02, 2021

Launching an OTT platform isn’t a major question anymore, since we know how to streamline a seamless video delivery! In this blog you’ll get to know more on how to build an OTT platform, app, service or channel with new trendy technologies.

The recent statistics indicate that OTT video revenue is projected to double globally by the year 2025.

This clearly gives us an idea how much there’s scope to build entertaining brands in OTT business.

Over the past few years, as more and more consumers prefer to stream on-demand videos, content owners realize that launching their video streaming service is not a good-to-have service but a must-have one. Moreover, the power of OTT platform have transformed the way, people prefer consuming media content rather than stereotypical traditional television content.

Have you ever wondered how OTT platform services deliver a flawless user experience?

The credit goes to the scalable platform powered by advanced technologies like Artificial Intelligence or Microservice Architecture that has been the backbone.

Hence, we can say that the  “Future of TV is Online Apps Streams ” because of these advanced services.

How to Launch Your OTT Platform?

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By building an OTT platform, you can capitalize on opportunities that are out of the scope for regular cable pay-tv. It enables content creators to reach their audiences directly.

By owning the OTT platform you not only own the content but also decide on the revenue streaming model.

The flexibility to customize and brand the online video content on your OTT service ensures a wide distribution of curated content while maximizing your income with customized video monetization models.

The future of OTT platforms will be geared towards the majority of TV viewership that is streamed over-the-top via online apps

Components Required To Build Your Own OTT Platform

Once you know how building an OTT platform right from the scratch helps you to grow, the next step is to collect various OTT platform components.. 

Starting an OTT platform with these can assist you with:

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1. Hosting - A make or break question

While building your own OTT platform, there is a choice between hosting videos on your server or on cloud. Both can be secured by the OTT platform architecture technology. Cloud white label hosting platform offers added benefits like expandable storage, zero latency solutions.

2. Multiple CDN - HD streaming round the globe!

Your OTT platform development depends on purely choosing the right CDN support for balancing the user demand globally!

An efficient CDN reduces core traffic in the network & rises to have minimum latency worldwide. Thus it facilitates seamless content delivery on-the-go! 

3. Streaming Protocol - Multi-channelized OTT video service

The time when you plan to start an OTT business to stream your priceless content, there are multiple streaming protocols for OTT video delivery. An OTT video platform that integrates HTTP & RTMP live streaming protocols go a long way providing the best viewing experience.

4. Transcoder - Encode & Decode OTT video streams

Offering only one video format is a missed opportunity! Every  video/audio  has different requirements with regards to its formats, sizes & quality. In simple words, transcoding is a process of converting your OTT app builder videos into multiple auto-adjust compatible formats such as Web, Mobile and TV.

5. Cross-Platform Support - Pro level of TV view beyond living room

Stream a variety of videos with the help of OTT app development that supports various monetization models. This is made viable by cross-platform OTT service compatibility that scales maximum cost-effectiveness to stream uninterrupted videos. This functionality helps videos to perform well irrespective of time or device.

6. IT Infrastructure - Embedded system with seamless distribution

While creating an OTT platform some APIs that are custom-built for various businesses perform extraordinarily well. The smooth functionality across all platforms where you want maximum reach, is the key reason for content seamless distribution.

When all microservices are put together in one umbrella, video streaming platforms can help you cut down on other IT resources, making it cost-effective. 

7. DRM Security-  Multi DRM platform with rigid encryption 

A secure OTT video platform is required to consider during your research on how to start OTT business. To leverage on built OTT service you need to ensure your platform is safeguarded from digital attacks.

Some of the video security solutions comprises dynamic watermarks, paywall integration, password protection, geographic & platform restrictions, etc.  

8. Access across all devices

Today, one can start an OTT video platform since it has become an integral part of us that has the highest scope of lucrative business ideas.

So accessibility across multiple platforms is the best way to provide your interactive videos at all portable devices like Web, Smart TV, Tablet, Mobile, etc.  This can definitely increase your cross-platform viewership. 

9. User engagement and video interface

It’s important to get essential insights of your customer’s timely preferences that can help to boost your video marketing tactics.

So, during your journey of learning how to start OTT business you can integrate the user engagement & video analytics to study the performance of your viral video/audio content. 

10. Multi-Currency, Multi-Lingual Support

Your dear customers are your pillars for building OTT video platforms, isn’t it! So make sure that you provide multilingual support bridging their language barriers at their preferred currency.

If your content publishers find your platform interesting to monetize their content, then for encashing their credits shouldn’t be a worry, in my opinion... 

The required components are now ready to shape your new OTT platform architecture.. To extract the best merits of building your OTT hub scroll down to quickly view them...

The Benefits of Building Custom OTT Streaming Service

OTT Industry enables content creators to build an OTT video service and reach their audiences directly for establishing better engagement with viewers.

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By creating a uniform brand experience across OTT your audience will find the brand familiar and recognizable when they watch your content.

Increase Brand Awareness: Online videos are a proven way to positively improve brand awareness, perception, and interest by building an OTT platform. For that matter, did you know mostly, out of 10 people 6 of them are more interested in watching online videos than television. This initiates a chain of awareness, understanding, and behavior that can create a loyal customer base.

Scalability: Cloud-based solutions help businesses to start OTT video platform and skyrocket their business. Scalability comes into the picture when consumer attraction can magnify the revenue via the top CDN system. CDN helps to scale up subscriber’s demand by organizing anticipated server demands. 

Reduce Cost & Time: Compared to a SaaS provider, building your self-hosted OTT streaming platform is a better cost-effective option. While building a platform from scratch by combining advanced technologies can be time-consuming, a SaaP provider enables you to start your own platform shortly.

Convenience: Want to know how to start an OTT video platform to ease your entertaining show business? Well, in that case I keenly suggest you to choose the right niche which is in high demand.. Other than entertainment, you can provide engaging streams with built OTT service in trending genres like Esports, Fitness, eLearning, Spiritual, etc. can sum up easily & easily get a wholesome of paid customers.

Engaging Audience: Once you are sure about in which genre you would serve your compelling videos, build an efficient video marketing plan. This can seize your audience’s undivided attention, having a smooth transition for them venture into  your custom-centric OTT video platform. Appropriate video analytical tools can define what might interest them and vice versa. 

Data Transparency and Microtargeting: The fundamentals have to be kept in mind while exhibiting your built OTT video service. Data encryption with content originality is one among them. Publish your secure video originals to restricted geo localities and persuade your set of audience to watch via microtargeting strategy.  

Smooth Transition from Traditional Television to OTT Content: The power of OTT can be leveraged against satellite TV services, since the connectivity gets better and have complete control on what to watch. Moreover OTT development provides greater affordability and flexibility in terms of niche audience preferences.

Larger Audience Reach: The OTT app builder has brought new scintillating brand experience across OTT channels. Viewers can correlate with the entertaining delivery videos when they view your valuable on demand content. This in turn with the help of marketing tools, wide audience reach is guaranteed to content owners or distributors. 

Strong Targeting Opportunities: Also when you are planning to build an OTT platform there are ample monetization opportunities that can bring unlimited fortunes for you. While adapting this hybrid business model, you can strategically capitalize on a category of viewers who wants to access your premium or free content. To name some, AVOD, TVOD and SVOD are top targeting revenue-making models that can you go a long way!  

Non-Skippable Ads: A customizable monetization model while starting an OTT platform can be as flexible as you think! Some of your highly demanding content can get deployed with both skippable and non-skippable ads. They can be injected during the pre-roll, mid-roll or post-roll of your showcased video & plan a logical arrival of advertised ads. Eventually this can change the stereotypical opinion about advertorials too, as your audience may take interest to check them out.

The Right Tools to Develop Your Own OTT Video Platform

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According to Digital TV Research, the global OTT market is expected to grow to $159 billion in 2024.

Ali Hussein, CEO of Eros Now, observed that between content creation and marketing, technology is the driver that enables the survival of the fittest.

With the user experience being the focal point for OTT providers, technology is what sets you apart.

  • Push Notification - Parse, PubNub
  • CDN (Content Delivery Network) - Amazon Cloudfront, Akamai, Limelight Networks
  • Encoders - Elemental, Coconut, Wowza, Mediakind, Encodingdotcom
  • Payments - CCAvenue, Paypal
  • Caches - Redis
  • Analytics - Google Analytics, Hadoop, Hive, MixPanel, Mode, Parquet, Pig, Presto, Spark
  • Recommended Engine - TargetingMantra, Prediction IQ
  • Queueing - Kafka, Rabbit MQ, Amazon SQS
  • Social Plugin - Meta, Sharing Options
  • Monitoring - New Relic, Dats Dog, Nagios

Things to Consider Before You Get Started With OTT Platform

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1. Define the Market

Setting a base for successful OTT offering is one of the basic to-do activity on your list before starting your OTT market. Identify the targeted audience, their content preference and form in which they prefer. Whether you already own a large amount of content or you are a beginner a careful research to analyze your target audience is essential.

2. Content Licensing

Refer to the information gathered about your target demographic by understanding the market and select the right pieces of content that viewers will value. This is a great source to know what blend of local and regional content that your OTT platform must offer, getting premium content and accommodating exclusive rights for content that drive viewer engagement. Content licenses maintain the uniqueness of your platform and broaden your customer base.

3. Revenue Models

A one-size-fits-all approach cannot work for OTT video platforms. Revenue models must be chosen to fit content requirements and business plan. Building a customized platform gives you the flexibility to choose the right revenue model for you. Models like subscription based, ad based, push TV and pay-per-view can be integrated into the platform.

4. Video Marketing

Having your video content ready is only one part of the business. An efficient way to bundle your content and planning the right way to promote it is as important as content creation. With social media integration, push notifications, recommendation engines and metadata management reap the maximum engagement for your videos.

5. Leveraging Demographics

With OTT streaming platforms, you can deliver worldwide or choose to stream in specific geographic regions. Analytic reports that can be customized for relevant metrics assist in leveraging demographic trends. Graphic and pictorial representations of your analytics data provides for simple and quick analysis which can be used to improve user experience.

SaaP or SaaS? Which is Better for Developing an OTT Video Streaming App?

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When you plan to begin an OTT Video Service, this will be a question you need to address. SaaS is cheaper in terms of cost. But a SaaP solution can deliver a customised user interface and robust marketability features. At an elementary level, these are the features that favour SaaP.

  • Customization: You can create a distinct product by choosing the streaming player, hosting server, transcoder and encryption. Supported by a dedicated team of professionals, customize the video streaming platform for your requirements.
  • Cost-effective: With one-time license fees, you own and control the platform. Starting from the content library and monetization models to the social media integration and geo-restrictions are tailored for you. Maintenance and updates are supported by.
  • Monetization Models: SaaP provides for several combinations of monetization options, integrating third-party ad servers & paywalls to maximise revenue. Apart from subscription models, you can include advertisement plans, pay-per-view or push TV.
  • On-premise/ On-Cloud Deployment: Unlike SaaS, you can choose where to host your content. It can be deployed on the cloud or in a server in your own premises. Deploying on a cloud is the preferred choice as it allows better scalability and extensive storage.

In a longer time frame, SaaP is a profitable revenue model as the costs are limited to a one-time license fees.

Let’s Conclude

Consumers prefer OTT over static pay-TV for a more engaging and meaningful content experience. Mobile delivery of OTT video for users-on-the-go is already growing exponentially.

There are a number of big names in the field already: Amazon, Apple, Netflix, HBO. But who can deny room for innovation and exploration?

Transcoding, hosting and encryption are the pillars for building an efficient OTT workflow. By owning your platform, monetization models can be planned for the revenue strategy of your business. VPlayed with its extensive experience in pre-built mobile SDKs and microservice architecture enables design and development of media streaming software for a variety of businesses. With a dedicated team of streaming technology experts, launch your OTT video platform at the shortest time cost-effectively.

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