As streaming services become increasingly popular, traditional TV is becoming a thing of the past – and so is the advertising we grew up with. Marketing professionals have had to develop creative ways to break into streaming and OTT (over-the-top) advertising, bypassing commercials altogether. OTT advertising gives marketers the opportunity to connect with audiences through their streaming services (e.g. Netflix, Hulu, Disney, etc.) OTT advertising allows marketers to connect with and engage with new audiences that would not be reached through traditional TV advertising.
Ways to reshape OTT revenue
While niche platforms employ recurring revenue streams through subscription SVOD platform models, seasonal content providers typically opt for pay-per-view pricing. When optimized to be non-intrusive, advertising can also generate significant revenue. Popular players of the times go even further, choosing an integrated mix of different business models based on the diversity of their content.
Focus on viewer preferences and interests
Paving the way for stable OTT revenue is not limited to employing multiple revenue strategies. Content and user experience should be personalized based on viewer preferences, another secret mantra of many of today’s successful players.
Prioritize the user experience
Today, if you look around, you will find multiple OTT platform providers. Each of them has something unique and more to offer. While one platform will offer exclusive content, another will have a cheaper subscription plan.
In a simpler way, viewers can choose from multiple OTT platform options. This is one of the reasons why the concept of user experience has evolved into a picture. Simply put, user experience is about making OTT platforms simple for users. From the navigation process of finding content to recommendations, users will prefer the best online video platforms that make it easy for them to watch content.
An innovative model for OTT monetization
For decades, advertising has been the backbone of live TV. With consumer viewing behavior rapidly shifting to streaming video platforms, it’s natural for companies to look for new and innovative solutions to empower their customers.
OTT content providers now need to experiment with different models to meet customer demand and attract new subscribers. You have subscription (SVOD), advertising (AVOD) and transactional video-on-demand (TVOD) models. All three have inherent disadvantages and advantages, but in the long run, the network’s content library and audience demographics will determine which model is best suited.
OTT platforms have flourished since they first entered the market. In addition, OTT applications can stream content without the use of a cable box. This has created an unstoppable force for content owners, distributors and brands who can combine scalability with traditional pay TV.
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