4 OTT Video Streaming Trends Disrupting Entertainment Industry

Posted By : Khushboo Arora | 17-Dec-2019

 Video Streaming App Development Company

 

 

OTT streaming platforms like Amazon Prime Video, Netflix, HBO, Hulu, Disney+ have gained huge popularity in recent years. According to eMarketer’s research, by 2019, more than 182 million people in the United States have subscribed to an OTT platform, which is more than half of the country’s population. 

 

 

The main reason for the popularity of these platforms is it provides viewers unlimited access to high-quality and original content on the go. We receive requests for applications like Netflix with or without a subscription model. Based on these requests our video streaming app developers curated different monetization models: 

 

  • Subscription Video On Demand (SVOD)- Users can enjoy unlimited access to their favorite video content just by paying a subscription fee monthly or yearly. Eg. Netflix, Hulu. The subscription fee for every country is different. 
  • Advertisement Video On Demand (AVOD)- Advertisement based VOD enables users to enjoy the video without any subscription fee. The service provider earns money through the advertisements that run when a user watches a video. 
  • Transactional Video on demand (TVOD)- A Video on Demand(VOD) service that enables users to buy content on a pay per view basis. Eg. iTunes, distrify.

 

 

If you are confused with the selection of a monetization model for your business contact our experts for complete details. 

 

 

As per the comScore research, 50 million households across the globe have an OTT video that they consume the same time of the day pattern as traditional TV viewers. 

 

 

With the above facts and figures, it is right to say that Over-the-top content is fast emerging as the foremost medium of entertainment. 

 

 

OTT video streaming services and mobile network operators have reshaped the video media landscape. The streaming services focus on enhancing the user experience by adding more feasibility to their consumption.

 

 

Eg. Netflix in July 2019 launched a mobile-only plan exclusively in India. The plan is priced under $3/ month to target tier two and tier three segments of India. 

 

Four emerging video streaming platform trends for 2019

 

To stay competitive in a video streaming business, it is essential to select the right monetization model and business plan. Let’s explore some of the trends that can make your platform stand out in the market. 

 

Hybrid Monetization Models: To sustain an OTT platform monetization is important. As discussed above we develop video streaming platforms that operate on SVOD, AVOD, and, TVOD monetization models. 

 

AVOD models suit YouTube perfectly because it already has a customer base. A new video streaming platform initially may find it difficult to make money through an AVOD model because of its limited reach to the audiences.  

 

SVOD payment models can be beneficial for a new video streaming business. Netflix and Amazon Prime Video have SVOD models through which users can access unlimited content available on these platforms. 

 

TVOD offers selective viewing experience. The users get what they pay for. It limits access to unlimited content. It is difficult to generate income through TVOD models because people get only a few videos to access. 

 

Youtube is one of the most successful video streaming platforms that have a hybrid monetization model. It initially started as an AVOD pioneer but it now charges a fee(TVOD) on some of the selected content available on its platform. 

 

Spotify is yet another OTT platform that provides freemium services. Spotify has a customer base of 170 million customers out of which 75 million are paid subscribers. 

 

The main source of income revenue for Spotify is earnings through paid subscribers. 

 

Trend 2: Increase in Demand for Digital Originals: 

 

Netflix in 2013 rolled out “ House of Card” a plethora of similar web television series. Netflix offers rich OTT glossary that enables audiences to consume more content at a time. 

 

Content originality plays a critical role in the popularity of an OTT platform. With the rise in demand for new and original content, the demand for SVOD platforms has experienced tremendous growth. 

 

As per the Parrot Analytics’ Global Television Demand Report 2018, a total of 319 new digital original series were released by various SVOD platforms in 2018. 

 

Netflix has a rich customer base of 140 million international subscribers. According to Parrot Analytics Global Television Demand Report 2018, Netflix invested $12 billion to produce 139 digital original series in 2018. 

 

Trend 3:Increased Competition Results in Content Fragmentation

 

Today, there are several OTT platforms showcasing web series and movies. Much of the content available on these OTT platforms may become exclusive to their respective OTT streaming platforms. To stay ahead in this competition OTT platforms must do content fragmentation. Top market players WarnerMedia, Apple, and Disney have recently launched their streaming services. That being said, these OTT players will remove their content from Netflix and will telecast it on their OTT platforms. 

 

Another important aspect for OTT platforms to succeed is delivering more regional content to its customer base. Also, Video streaming platforms must develop strategic partnerships with other content providers to reduce congestion of different apps on the user's device. 

 

According to the PwC Content Discovery Study, searching video content is frustrating for the customers. 

 

The video streaming app developers should develop platforms that provide co-branded offerings and revenue sharing models to the customers. The UI/UX of the app should be such that it is easier for users to locate their content. 

 

Trend4: Mobile as a Primary Content Consumption Channel

 

Earlier the only way through which users consumed content was Television. Mobile has surpassed TV as a primary content consumption channel. Developing a video streaming app for mobile and smart televisions is equally important. The majority of OTT platform users face watching their favorite TV series on the go. For instance, a person watching Game of Thrones on a regular TV screen while at home can also watch it on the go using the YouTube mobile app. 

 

According to eMarketer’s research 75% of video content consumption worldwide happens through the mobile phone. 

 

According to Netflix data, 20% of subscribers consume video content using their smartphones. 50% of the consumer's login to Netflix through their mobile devices at least once a month. Also, 30% of initial sign-ups happen with smartphones. 

 

With the launch of 5G internet services in South Korea and the US, the content consumption of OTT video streaming services will increase among smartphone users. 

 

Are you planning to launch a Video streaming platform? Contact Oodles Technologies- a well-established video streaming app development company that delivers OTT solutions based on the current market trends. Our experts also recommend a monetization model that best suits your video streaming platform. For more details get in touch with our experts today! 

 

 

About Author

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Khushboo Arora

Khushboo is a Technology enthusiast. As a content strategist , she has a great affinity for discovering and sharing unique insights and resources with the tech community.

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