The OTT market is moving at such a rapid pace that new forecasting by research firm, Digital TV Research has suggested that worldwide OTT video revenue will reach $51 billion in 2020. That’s a growth factor of almost two times the expected figure in 2015.
So, to what do we attribute this huge growth?
Well in the past, providers have offered complex frameworks that have resulted in the service becoming largely the domain of multi-million dollar projects with large cable and telecoms companies. The service has also traditionally been beset by complexities, causing some projects to take up to six months to implement.
The sheer costs and long-lead timescales for implementation have restricted and precluded smaller organizations from entering the market.
However, a new generation of OTT technology is now available to support the efforts of small-to-medium sized tier 2 and tier 3 content owners looking to establish a foothold in this sector.
New providers entering the market
These smaller companies are now reaping the benefits of rapid deployment services to grab market share in the OTT space.
The stability of the new technology allows smaller companies and providers to launch a highly professional service in such a short period of time.
New OTT multiscreen video platform technology enables an OTT service to be developed and delivered within a matter of days, from launching the brand, setting up monetization, through to content licensing and acquisition including linear and VOD files.
The new technology is robust, effective and isn’t complex to implement (unlike its predecessors) and offered as a TV-as-a-Service model. It’s secure and cloud-based, so just fire it up!
Content is key
One of the other key challenges impacting organizations considering a launch into the OTT market is the paucity of content available to them. Some may own content of their own or have rights to more but possibly, not enough to initially launch a full service.
Content is increasingly available but gaining access to it can be difficult. You don’t want to offer a pirated service so why not start with your own 2-3 linear channels and then add 10-15 extra paid channels to offer a truly engaging and diverse service?
Help is out there for companies to explore and discover the content available to attract their audience and to also support with licensing content. It takes all of the pain and anguish away.
Plan your service and go!
This whole approach to deploying OTT video channels is disrupting established business models. It’s effectively democratizing a previously impervious market but the real key is to do it profitably.
To launch and operate a successful OTT service, you need to find the right technology for your organization, with appropriate content sourcing options, all based on a proven revenue sharing model.