Launching Your Own OTT? Things You Need to Know:
The OTT streaming market is experiencing exponential growth, projected to increase from $294 billion in 2023 to $397 billion by 2027, representing a 35% surge in just four years, according to Statista.
With this surge, companies face a critical decision when entering the OTT space: should they build their own streaming technology or buy a pre-existing solution?
Opting to build offers complete control over features and roadmap but entails high startup costs and complex technology requirements. This approach can divert attention from business growth as challenges arise in scaling, security, and establishing a compatible technology stack.
Conversely, buying technology provides a quicker time to market, reduces risk, and allows a focus on business development, benefiting from a proven, reliable platform.
OTT Technology is Complex.
The complexity of OTT technology involves various components along the media supply chain, demanding dedicated development and maintenance resources. Content management systems, encoding, transcoding, content delivery networks, and additional technology for live streaming and conversions are just a glimpse into the intricate infrastructure required.
Monetization models further complicate the tech landscape. TVOD may only need payment processing and CRM, while SVOD necessitates subscriber management software. AVOD introduces complexities with ad servers, DSPs, SSPs, and ad insertion options. To streamline the AVOD model, services like Ad Monetization aim to reduce complexity in adopting hybrid monetization models.
Bleuenn Le Goffic, VP of Strategy and Business Development at Accedo, emphasizes the need to rely on external vendors to simplify the complexity, stating, "You shouldn't be spending all your energy and internal investment in finding out what technology will make a video service work well."
OTT is Supposed to Grow.
Launching an OTT service is a significant commitment, requiring meticulous planning for ongoing growth. Selecting a scalable platform in the early stages is crucial to avoid disruptive migrations as the service expands. Streaming technology's evolution, exemplified by media giants like Yahoo turning to Brightcove, emphasizes the importance of choosing a solution that can grow with diverse entities, from D2C fan brands to major media companies.
OTT Depends on Content Metrics.
Shifting from traditional media metrics, modern digital audiences demand a focus on analytics such as new subscribers, viewing frequency, and platform engagement for a more accurate view of current and expected growth. Machine learning models underscore the importance of frequency of use as a valuable indicator for video services.
Aggregating content data with audience and service data remains a challenge, but advanced analytics tools like Brightcove Subscriber Insights aim to simplify this process. Establishing a unique brand identity is crucial for differentiation, emphasizing the importance of brand tonality, personality, and archetype within the OTT experience.
OTT Should be Unique and Add Value.
Choosing between building and buying shapes the future of an OTT streaming service, determining where the majority of resources will be invested—in technology or the overall user experience. Unlike traditional media, successful OTT services focus on fostering a sense of community, transforming viewers into community members. This shift in perspective emphasizes the need to nurture a community that eagerly anticipates content, binds together in a shared experience, and consistently returns for more.
Build a Community, Not an App.
Deciding whether to build or buy is a critical step that can shape the future of your OTT streaming service in terms of growth and profitability. Before launching an OTT service, careful consideration of content and distribution strategy, monetization strategy, and marketing strategy is essential. The right decision ensures the creation of a high-quality viewing experience that resonates with the audience, builds a community, and encourages repeated engagement.