The internet penetration along with its affordability has increased over the past few years. People are increasingly relying on the internet to access educational, entertainment, and news content. This has given a major push to the OTT streaming platforms that leverage the internet to directly deliver content on the user’s streaming devices.
As per the latest predictions, the online streaming market will be worth over $124.6 billion by 2025. Having an effective content strategy is crucial for broadcasters and publishers to build a sustainable business out of their OTT endeavors.
Let’s learn about the two most prominent content distribution strategies used by various OTT video streaming platforms in the contemporary world.
1. Direct-to-consumer (D2C) app model
The D2C app model strategy is one of the most mainstream content distribution strategies that is used by all the leading players in the OTT domain. In this OTT distribution strategy, the publishers can build their own OTT platform or application to deliver content directly to the users. This model doesn’t require them to rely on any middlemen or intermediaries such as Roku or Apple.
Pros of building your own OTT app
· Publishers don’t necessarily need to build their application from the scratch, they can use third-party service providers that offer purpose-built services.
· Having a D2C app provides you with more flexibility and control over setting the user interface and experience.
· You can control aspects of your monetization model, customization, personalized recommendations, etc.
Cons of building your own OTT app
· Building your own OTT online video platforms can be quite expensive and you need to spend a lot of time and resources if you are planning to build it from scratch.
· You will have to incur additional expenses in marketing your offerings, acquiring customers, and retaining them.
· If you opt for some cost-effective solutions, you might not have complete control over various aspects of your application.
2. OTT content aggregators
Another popular way to distribute content in the OTT model is using content aggregators. Some of the most popular content aggregators that content creators are using to deliver their content to users include Amazon, Roku, Pluto, Apple, etc. Content aggregators have a wide range of content to offer on a single platform. It can include VOD content, paid subscription video services, linear channels, etc. With the growing count of cord-cutters, it makes all the sense to bundle OTT streaming services and offer a more economical option to the viewers. Let’s delve deeper into the pros and cons of this OTT content distribution strategy.
Pros of an OTT content aggregator model
· Availability of channels partner’s marketing support is one of the biggest advantages of using this OTT delivery platform for distributing your content.
· You will not have to spend a huge amount on advertising your content to the targeted audience.
· Using content aggregators to deliver content also results in a lower churn rate when compared with personal OTT apps.
Cons of an OTT content aggregator model
· One of the biggest disadvantages of using content aggregators to deliver your content to the targeted audience is paying a fair share of the revenue as a fee.
· Another important disadvantage of using the content aggregator model to distribute content is that you have no access to the subscriber’s data.
· You will have little to no insights into how your audience is reacting to the content and what marketing angle will work out the best.
Finding the best way to distribute OTT content
Now that we have measured the pros and cons of the two most prominent content distribution methods, it is safe to say that creating your own OTT application will provide you with more flexibility. Building your own OTT application and following a D2C distribution strategy will give you an edge over the competition as you will have complete control over your marketing and content placement. Hyper-personalization of services is the key to winning in the modern digital era and you can’t achieve that without proper data at your disposal. Let’s see how creating your own OTT application by choosing a reliable OTT provider will be beneficial in the long run.
If you are planning to create your own OTT app, you will obtain a fair share of your revenue from user subscriptions. You will not be able to obtain as much profit if you choose to deliver your content using an aggregator’s platform. Even selling the license for your exclusive content will result in a loss of subscription revenue. You also need to pay a percentage of your total revenue when partnering with content aggregators and other channels. Building your own OTT application will help to boost your overall profitability.
Branding is the key to winning in the OTT space and creating a robust reputation in the minds of your customers. When you opt for an aggregator’s platform to deliver your exclusive content, they will also get a fair share of the credits. It will be hard for the audience to disassociate between your content and the platform. In addition to this, you will have little to no data related to your subscribers or viewer’s activity. This data plays a key role when it comes to creating and marketing relevant content for the targeted audience. This will refrain you from providing personalized content recommendations which are very crucial in creating a sustainable OTT business.
· Business valuation
It is true that using content aggregators can easily get more views on your content and it is convenient to reach a large audience base easily. However, it will result in lower business valuation in the long run as you won’t have much control over your content and the user data. We all know how important it is to collect user data when it comes to creating a sustainable business. Also, the business valuation process entails assessing your total revenue and profitability. Delivering content using aggregators will result in lower profitability and lower business valuations.
Creating your own OTT application to deliver content is crucial if you want to establish a sustainable business. You must choose a reliable OTT platform provider that can help you create a feature-rich OTT app. This will help you deliver an exceptional user interface and experience.
Interested in digging deep into video/audio streaming media tools and Love to blog, discuss and share views on the latest technologies tips, and tricks. He’s also passionate about photography loves to capture the pure essence of life.