The OTT (over-the-top) industry is growing fast, making this a great business opportunity for OTT provider.
Viewers are turning to online streaming services to fulfill their needs in content of various types: from entertainment to educational. And this demand is rising since more people are cutting the cable cord to switch to video platforms instead.
Before creating a streaming platform, it is better to elaborate on an OTT business plan that describes all necessary aspects of your business, from goals to delivery methods and monetization models. Let’s explore what it should include.
Table of Contents
Five Key Components of an OTT Business Plan
#1 Goals
The primary question you need to ask yourself before launching is: why do you want to do that?
What do you want to achieve by creating an OTT video streaming service? Where will it be going in the near 3-to-5 years?
The answer to these questions can help you find your uniqueness that will be appealing to customers. It can help you stand out from the competition.
You should set up goals to make informed decisions during the operation. They can help you understand whether this or that action will help you achieve your aims. They will also help you measure your progress on the way to achieving.
#2 Market research
Conducting market research helps you ensure that there is a demand for your product. Check statistics data, such as the industry size, growth potential, and players.
It is also necessary to identify your target audience and learn their preferences and needs, as this information will help you understand what content and marketing campaigns to create and what tone of voice to use. Utilize various analytics tools to discover more about your viewers.
It is also better to create a viewer persona that describes your ideal customer based on the research. It can include demographic data, psychographic information, content preferences, average budget information, and preferred devices.
Another critical survey you should do is a competitive analysis. You should identify your competitors’ strengths and weaknesses, which can help you find a free niche for your video streaming business to differentiate.
#3 Promotion
Creating a marketing strategy is another important step, as it will help you attract and retain viewers. Utilize different marketing channels:
- Social media services provide tools for direct communication with your audience. Moreover, you can launch ad campaigns there to raise awareness of your platform.
- Influencer marketing is about partnering with influencers so that they recommend your OTT service to their followers, bringing viewers to you.
- PR campaigns can help you create a buzz around your service, spreading your brand name and attracting subscribers.
Beyond these strategies, you can benefit from content marketing, SEO, affiliate marketing, paid ads, and other promotion methods.
#4 Technology
Technology is one of the key elements defining the success of your video streaming service. Its ability to provide a seamless quality of experience (QoE) is significant for user engagement and retention on your platform. The following can be essential:
- CDN (content delivery network) is vital for delivering high-quality content to people worldwide. It is helpful in reducing buffering and improving the viewing experience.
- Multi-platform functionality is the ability to access your service on any device a viewer wants, including mobile phones, tablets, TVs, and desktop computers.
- Encoding and transcoding are processes necessary for smooth delivery and playback on a user’s device. They help ensure adaptive bitrate streaming that adjusts the quality of a video to a given network condition and technical requirements on a viewer’s side.
- Content protection is critical for preventing unauthorized access and distribution of your videos.
- Analytics is about collecting valuable data on user content consumption and behavioral habits on your service. They can help understand the overall performance of your service, identify weaknesses and strengths, and improve it.
- OTT video monetization functionality is vital so that you can generate revenue by producing content. Common models include advertising, subscriptions, pay-per-view, and a hybrid.
Proper technology can help you ensure the best quality of service (QoS) for your customers so that they return for more similar experiences.
#5 Content
Content is king and the first thing people assess when deciding whether to use your service. Make sure you create videos that fulfill viewers’ needs and meet their demands.
Final Thoughts
We have described five key components of a video streaming business that, done correctly, can lead it to success. Pay attention to content, technology, marketing, and audience, as they define the results you receive.