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Top 8 OTT Platform Challenges & Pitfalls - and How to Avoid Them
Top 8 OTT Platform Challenges & Pitfalls - and How to Avoid Them

June 8, 2021

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The OTT business has seen a steady rise in market players and customers. Some of this can be attributed to the pandemic conditions where people were forced to stay at home to flatten the curve. Customers’ desire to control what they see has caused a high demand for OTT services. 

According to sources, OTT median revenue is expected to reach USD 210 billion by 2026—double the revenue of 2020 which was USD 106 billion. But that doesn’t mean that when you start an OTT business, you just need to churn content and you’ll reel in profits.

 

The industry has its own challenges and we’ve curated a list below:

 

OTT challenges you’ll face when you create an OTT platform:

When you’re looking at tips on how to start an OTT business you must be ready to face the issues as well. With proper planning, you’ll be able to plan and face these challenges with ease.

 

  1. The wrong audience profiles

Your audience is one of the key factors you need to focus on while creating an OTT platform business model. Like any business, know your audience and generate content based on what your audience wants to see versus producing content and hoping you get customers. 

To create an OTT platform, focus on what niche you want to choose, define your audience. It is essential to create a loyal following in the OTT industry to succeed. With the right audience in mind, you’ll not run out of content ideas as you know what your audience wants from your service.
 

  1. Poor technological considerations

Technology plays an important role in the success of your business when you build an OTT platform. From API, servers, content management systems to security, paywalls, and integration with devices you need to focus on all the technical aspects to keep your OTT service up and running. 

Hiring the right OTT platform provider who is an expert in all things OTT can considerably reduce the risk you face with this challenge. 

 

  1. Wrong content targeting

You’ve built your own OTT platform, you’ve chosen a niche, created content, and have subscribers. What next? To keep your customers on your OTT app or website, you need to suggest more content. 

Take Netflix for example, after a series or movie is completed, it recommends another movie or shows the customer would be interested in. Personalizing this experience can improve the time spent on your platform and increase revenue through higher subscribers.

 

  1. User experience not up to standards

There are multiple OTT streaming platforms across the globe. To compete in the market, you must for one provide original and unique content. And the second is to offer a user experience that is smooth and efficient. This includes the design of your platform, easy-to-use controls, effortless navigation. 

An OTT solution provider can take care of this for you by customizing your entire website or using an OTT app builder for easy access on smartphones.

 

  1. Consistent quality

In OTT development, one of the major concerns is meeting the expectations of the customers. Whether it is the content or OTT platform, with every new feature, content, and experience, customers expect more. This is not just for new OTT services but even OTT giants like Netflix, HBO Go and more are under constant pressure to produce the next new hit. 

 

  1. Revenue and monetization issues

According to sources, there are over 340 million SVoD (subscription-based revenue) subscriptions in the US alone. For a time, many believed that TVoD (Transactional Video-on-Demand) was the next best hit, and that is the case for many educational platforms, but the subscription-based OTT revenue model has seen a steady rise. 

Each OTT platform attracts a different kind of customers and finding a dynamic monetization model that caters to all audiences is the perfect solution to this issue. Many OTT providers have multiple revenue models that you can choose for your business.

 

  1. Video piracy

Piracy has been an issue since the time of traditional TV. Video piracy leads to a huge loss of revenues, customers, and reputation for a business. Hacks into OTT servers don’t just mean content leaks but put at risk customer data too. About 21% of the US population watches pirated shows. 

There are many means to combat video piracy. Tightening the security of your OTT platform by using technology like DRM, digital watermarking, encryption, and others can reduce this risk considerably. 

 

  1. Retention

With many OTT services available to users, it is tough to attract new subscribers and an even bigger challenge to retain subscribers. You might face the following issues:

  • Subscribers opt for a free trial and then opt out when it ends
  • Lack of new content drives away subscribers
  • Complex user interface can push customers to unsubscribe from your service

To combat this, you will have to focus on creating consistent high-quality content and a smooth user experience. Even experimenting with revenue models to see what your audience prefers also works in your favor. 

To summarize, creating original, unique content will attract customers to your OTT platform. But features like security, good technology, customization, multiple monetization models can factor in the success of your business in the long run. Hiring the right platform provider can help you focus on content creation than the latter functions.

 


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Experienced Technical Writer | I have opinions about Telecommunication & Streaming Technologies

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