OTT platforms are fast expanding in terms of subscriptions, because of a variety of factors.
A number of younger generations have adopted OTT platforms. OTT platforms such as Netflix, HBO, KODI TV, IPTV, and others are growing increasingly popular. Smartphone and mobile data prices have dropped, allowing a major part of the population to use internet platforms.
Consumers have the ability to choose and view content on OTT platforms. It's also a convenient way for customers to view their favourite TV series whenever they want.
What is an OTT platform?
Over-the-top platforms, or OTT platforms, are content providers that are fast-growing as more people turn to the internet for entertainment. OTT is a technique of delivering music, video, and other media services to users directly over the internet, bypassing traditional services like cable television. OTT is also service or technology that enables users to share pre-recorded and live-streamed videos with others. This content is available over the internet on mobile phones, smartphones, tablets, smart TVs, streaming sticks, and personal computers.
Most OTT platforms now provide more than just streaming video and hosting. These provide video monetization alternatives, such as the ability to sell your video content through one-time sales, subscriptions, rentals, and bundled bundles.
Just a few examples like Amazon Prime, Netflix, Disney Hotstar, and Hulu.
What are some of the challenges that an OTT platform has to deal with?
Look at the various challenges that OTT platforms are facing and how many of them are being turned into opportunities and overcome
The following are some of the other notable OTT platform challenges:
Challenge 1: More Power is Needed
The OTT platform handles high-resolution video data. As a result, operating these platforms will require additional power. The rising demand for storage capacity is due to increased electricity, energy, and fibre capacity use.
- To handle the multiple versions that are generated, more storage is required.
- Special IP switches capable of managing high line data rates are required for higher-capacity fibre connections.
- This boosts clock speeds, which further increases throughput latency.
The solution to this problem is multicasting technology. Multicasting is an IP protocol mechanism for broadcasting a shared data stream using reserved IP addresses. The usage of OTT platforms for internet distribution is becoming more common.
Challenge 2: Content delivery is poor (speed and quality)
Meeting client expectations is one of the most difficult aspects of OTT content delivery. With each new experience, piece of content, or feature, customers want more from the OTT platform or the content itself. This is applicable not only for new Ott platforms, but also for established Ott platforms like HBO Go, Netflix, and others, who are concerned about the ability to develop the next big thing.
Challenge 3: Using the incorrect revenue model
In the United States alone, there are about 340 million subscription-based revenue (SVOD) subscriptions. For a long time, most people expected that transactional video-on-demand (TVOD) would be the next big thing, and most educational platforms were no exception. The subscription-based VOD income model, on the other hand, has seen continuous growth.
Understand that each OTT platform serves a different kind of audience, and the best solution to this challenge is to establish a dynamic revenue model that appeals to all of them. Most OTT providers offer a variety of revenue models from which to choose for your company. Always keep this in mind.
Challenge 4: Problem with the Content
Content is at the heart of OTT platforms, even if it may not appear to be the most important factor in attracting viewers. It is also true that these services will fail in the long run if they are unable to create and deliver the content that viewers desire.
Giving niche content is a fantastic way to solve this difficulty. WWE and Crunchyroll are two examples of niche content providers that have excelled. This solution was extremely successful for CuriosityStream and Dramafever.
So, exactly what is niche content? It all simply refers to avoiding the pitfall of producing generic content. It involves giving viewers something unique and different.
Challenge 5: Retaining viewers
One of the most challenging problems that OTT providers face is keeping their audience. Among the various concerns in this issue are:
- Providing the content that viewers seek
- Providing high-definition video
- Advertisement content should be non-intrusive and allow viewers to bypass it if they so desire.
It's simple to understand why getting these components right is so important. Intruding advertising and poor video image quality are two significant reasons why consumers skip specific content.
It’s clear that the OTT industry is growing more and more competitive and that providers need to actually offer if they want to attract and retain viewers. This is more than just providing excellent content; it also includes creating an outstanding overall experience. Many providers are partnering with an OTT platform to resolve these issues and produce content that users want to see.
Challenge 6: Management of expectations
This is no less of a problem since it is an internal matter. Just because some companies have succeeded in OTT operations does not mean that everyone will. There's no assurance that a company will be as profitable or earn returns as quickly as its investors expect.
To summarise, a company can increase its subscriber base and even make a profit, yet it will still be killed out since internal expectations were set too high.
Challenge 7: Moving Forward in a Competitive Market
For starters, national smartphone usage, which is a major measure of digital adoption in developing countries, is predicted to reach. Everything is falling into place for Indian OTT providers, as they stand to benefit from a big potential market of over 100 million customers, which is growing at a rate of 35% per year. OTT platforms have a bright future in our increasingly digitising society – but only if they can satisfy the demands of their consumers and quickly fix current user experience concerns. Otherwise, even if market conditions are favourable, businesses may lose more users than they gain.
Challenge 8: Video quality
OTT providers must provide consumers with a seamless viewing experience free of jitters and delays in order to compete with broadcast television. India's current internet infrastructure, on the other hand, prohibits a consistent experience across the country. Because of the slower than average Internet bandwidth, buffering costs OTT players about a quarter of their audience.
To overcome this issue, OTT providers are teaming up with telecommunications companies to combine their entertainment offerings with 4G capabilities.
Challenge 9: Piracy of videos
Since the beginning of regular television, piracy has been a concern. Video piracy affects a business a lot of money, as well as users and reputation. User data and content leaks are both at danger when OTT platforms are hacked. In the United States, about 21% of the population watches pirated television.
Piracy of video can be overcome in a variety of ways. Using DRM, digital watermarking, encryption, and other security technologies to improve the security of your OTT platform can dramatically reduce this risk.
Conclusion
OTT platforms are now a much preferable source of entertainment for audiences of this generation.OTT platforms are facing many challenges. However, it can easily overcome these challenges and will evolve into newer opportunities in the near future.
