If you have been thinking about launching an OTT service, this is the best time to do it. With ultra-fast networks, advanced mobile technology, and upgraded connectivity, video streaming is in demand all over the world.
However, even with all the right technologies, OTT business still requires certain considerations before launching a channel. There are pitfalls and challenges associated with OTT space. It is important to tackle them to obtain the desired level of success in your business.
Here are all major challenges you need to avoid when starting or running an OTT service.
- Misunderstanding your target audience
You have to have clarity over the target audience you have. The right audience and a correct assessment of their interests are necessary as a foundation for running an OTT service. Many service providers make the mistake of targeting too broad or too narrow of an audience. Sometimes, new players enter a niche market that has already been over-crowded with other existing players. There are only a finite number of viewers and they utilize limited hours per day to view content.
Hence, it is necessary to conduct thorough research on the kind of audience you want to target. Then, understand what they desire for entertainment. This will make monetization more effective with high revenues.
- Using outdated technologies
From the standpoint of technology, there are correct and incorrect ways to conduct an OTT business. The correct method is the use of cloud based playout. This technology has completely changed the OTT industry in terms of infrastructure collection, maintenance, cost of launching a channel and monetization abilities.
With cloud playout software, you can efficiently and quickly scale your services to expand profits without having to spend an enormous amount of capital. Third-party service providers help you avoid the need for on-premises heavy infrastructure. Hence, the cloud seems the most rational way of planning a business in this industry.
- Offering a wrong kind of content
As per the interests of your audience, you need to provide the right kind of content in formats they desire. Here comes the utilization of big data or analytics. An advanced evaluation of audience-related data offers invaluable insights regarding how different content pieces in your library are delivering results. This analysis is important to keep on modifying and updating the library with a more popular kind of content that can attract viewers.
- Delivering a poor experience to users
When launching your own OTT channel, you directly compete with the giants like Netflix. They have invested years of effort to refine their quality of user experience with advanced technologies and features. Hence, users expect to have the same level of quality as top services in the industry.
User experience in OTT depends on everything from quality viewing to customer support. Along with that, you have to be able to provide easy sign up process, affordable cost, smart monetization techniques and a lot more.
With these challenges in mind, create a plan for your new channel in the OTT industry. The chances of success will boost exponentially.