People cut the TV cord and switch to internet-based services. Businesses create their OTT (over-the-top media service) platforms. There are many reasons for that. In this article, we are going to focus on those reasons that make an OTT platform beneficial for both sides.
OTT is convenient
OTT platforms have many characteristics that make them convenient to use. For example, they are internet-based, which means that a service is available anywhere where there is an internet connection.
Also, if a company takes care of OTT application development, its service is available on many devices: smartphones, tablets, laptops, and Smart TVs. So, people can leave their homes and continue viewing videos. They can sit on a bench in the park or wait in a queue and enjoy videos.
OTT provides more freedom of movement due to its connection to the Internet. People can drive a car and listen to an educational video they are interested in, unlike cable TV when a viewer has to be at home to watch shows and movies.
What is more, people can stop using the platform any time they feel like that. There are no long-term contracts. And the OTT platform fee is usually lower than the one TV providers charge.
OTT is profitable for a business
The primary goal of a business is to earn money. OTT platforms provide many opportunities for that. They sell access to videos differently. For example, a business can decide that videos will be free of charge, but it will make revenue by selling the opportunity for other brands to advertise on a platform. Then it will be an AVOD platform (Advertising-based Video on Demand).
Also, OTT businesses can make revenue by people subscribing to a platform. In this case, there are no ads on a platform. People purchase monthly or yearly subscriptions and enjoy video content.
Businesses can also sell access to a single video or a series of videos. This monetization model is popular among video streaming platforms that target smartphone users.
Viewers can binge-watch
Suppose you want to watch a series. You switch on a TV and look for a certain episode. But all the channels show everything but the video you want. Finally, you find what you want in the program, but you should wait several hours before the show starts. And you will watch only one episode and wait until a new one is released on TV.
It is not like that with OTT services. Viewers have the whole library of videos at their disposal. They can even watch the whole series nonstop in a day or several. People don’t need to wait a week for an episode and burst with curiosity. They choose a series on a platform and binge-watch.
A viewer decides when to stop watching, not broadcasters.
OTT services are profitable both for users and owners. Customers prefer these services because they are convenient and easy to use, while businesses make a lot of revenue. They also can create their content by sharing their experience. In this case, an OTT platform becomes a brand media.
That is why it is a perfect alternative to cable TV.