Considerations When Monetizing Your OTT Offering
The OTT landscape is changing rapidly, but this isn’t a reason for OTT providers to stop adapting. It’s vitally important that providers are constantly evaluating and optimizing their feature sets to stay relevant in the ever-changing digital world.
But a successful OTT service encompasses more than just video. To truly be successful in the coming years, it’s important to go beyond just video content. In this blog post, we’re going to explore how video providers can find new revenue streams and continually monetize their offering as they grow.
Business Model vs Monetization Strategy
A business model is a set of strategies, which a company uses to create, deliver and capture value. Monetization strategy is a part of the business model that deals with how the company generates revenue.
It’s quite common for companies to confuse these two terms. However, it is important to understand that there are significant differences between the two concepts and they should not be used interchangeably. Video providers need to start focusing on monetization strategies, but this doesn’t mean changing the video provider’s business model. The business model of your platform (whether it’s Subscription Video on Demand, Advertising Video on Demand or Pay-per-view) is closely linked to the type of content and audience you have.
Businesses must be able to generate revenue and grow in a fast-paced world. We now live in an era where consumers are more demanding and are constantly looking for new and better content. Therefore monetization models are not as effective as they used to be. This means that video providers need to constantly come up with a monetization strategy to suit the current market. This will in turn change a lot of aspects and keep consumers happy.
The role of data
Data is the backbone of any OTT service. It helps to understand the behavior of customers, it helps to increase revenue and without data engaging customer is not possible.
It is important for any OTT service provider to know their customers and what they want. That’s why they need data. Data can help them to understand their customer’s behavior, make decisions and increase revenue. It can also help them in understanding what their customers want so that they can serve them better.
Making Monetization work for your business
Video service providers should evaluate their monetization strategies more often to stay competitive in today’s fast-evolving media world. Consumer habits and preferences are changing. This is creating both opportunities and challenges for businesses. On the one hand, it’s becoming more difficult to monetize in traditional ways, but on the other, new revenue streams are opening up which give customers a better user experience. To ensure that your product roadmap and monetization projects deliver the intended outcomes, it’s important to have an overall plan in place. This will allow you to identify a clear indication of success and determine which steps need more attention and investment.
Data are an important factor to consider when coming up with a monetization strategy. Many video service providers have access to information about their audience, some are taking advantage of this but few are fully utilizing it. If a company has tons of high-quality data about its target audience, it will understand customers better and be able to do more experiments to increase sales.
It’s important to always plan for the future, even if you are really successful with your current monetization strategy. It’s important to start thinking about expanding your monetization strategy for the future. You could consider adding features like gamification or creating new revenue streams.