People are cutting the TV cord and switching to internet services. Companies create their OTT (over-the-top media service) platforms. There are several reasons for this. In this article, we are going to focus on the reasons that make an OTT platform beneficial for both parties.
OTT is convenient
OTT platforms have many features that make them convenient to use. For example, they are Internet-based, which means that a service is available wherever there is an Internet connection.
Moreover, if a company deals with the development of OTT applications, its service is available on many devices: smartphones, tablets, laptops and Smart TVs. So people can leave their homes and continue watching videos. They can sit on a bench in the park or stand in line and watch videos.
OTT offers greater freedom of movement thanks to its connection to the Internet. People can drive a car and watch an educational video that interests them, unlike cable television where a viewer must be at home to watch shows and movies.
Additionally, people can stop using the platform at any time. There are no long-term contracts. And OTT platform fees are usually lower than those charged by TV providers.
OTT is profitable for a company
The primary objective of a business is to make money. OTT platforms offer many opportunities for this. They sell video access differently. For example, a company may decide that the videos will be free, but it will generate revenue by selling the ability to other brands to advertise on a platform. Then it will be an AVOD (Advertising-based Video on Demand) platform.
Additionally, OTT businesses can generate revenue from people subscribing to a platform. In this case, there are no ads on a platform. People buy monthly or yearly subscriptions and enjoy video content.
Companies 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 turn on a TV and search for a certain episode. But all channels show everything except the video you want. Finally, you find what you want in the program, but you have to wait several hours before the show starts. And you will only watch one episode and wait for a new one to air on TV.
It’s not like that with OTT services. Viewers have the entire library of videos at their disposal. They can even watch the entire series non-stop in a day or more. People don’t have to wait a week for an episode and burst out with curiosity. They choose a series on a platform and binge-watch.
A viewer decides when to stop watching, not the broadcasters.
OTT services are profitable for both users and owners. Customers prefer these services because they are convenient and easy to use, while businesses generate a lot of revenue. They can also create their content by sharing their experience. In this case, an OTT platform becomes branded media.
That’s why it’s a perfect alternative to cable TV.