Today, everyone is talking about OTT apps. It’s not just a buzzword for people who like video streaming and TV platforms; it’s also an excellent tool for businesses trying to boost sales, open up new marketing channels, and establish a strong brand.
OTT streaming platforms and applications have changed the way content is presented and viewed by people worldwide. Along with increasing the availability of high-quality content, it has also made the content more easily accessible to audiences. With a significant increase in demand, there has been substantial growth in OTT TV App Development.
Despite its popularity, the technology is available almost everywhere, including Disney Plus and Netflix. And if you want to build OTT app and invest in OTT App Development, you must first understand what an OTT platform exactly is and how it can benefit your business.
Without further ado, let’s get started!
First, let’s look at the statistics here:
- The United States will generate the most global revenue (US$119,100.00m in 2022).
- By 2027, the OTT Video segment will have 3,508.0 million users.
- User penetration will be 35.7% in 2022 and 44.1% by 2027.
- With a market volume of US$180.40 billion in 2022, OTT Video Advertising is the largest segment.
- The average revenue per user (ARPU) in the OTT Video segment will be US$101.20 in 2022.
So, What Exactly Is an OTT App?
OTT Platforms, also known as Over-the-Top Platforms, are web-based services that provide video and audio streaming content. On OTT platforms, you can pay for the content you want to watch. There will be no need to deal with a cable company, satellite connection, or other broadcast mediums.
OTT apps, in general, let you instantly stream your favorite videos and live streams on the devices of your choice. Whether it’s a movie, a yoga class with your favorite teacher, or an online course, you can watch whatever you choose.
However, the best part that differentiates OTT App Platform from traditional viewership is its accessibility and subscription-based service. You can access international-level content from anywhere in the world.
Why Are OTT Apps So Popular?
The following are the three key factors that contribute to the popularity of these apps among viewers.
- Control and customization
Viewers are ready to pay more to have more control over what they watch. Therefore, more than 25% of US households have access to five OTT apps. They are willing to pay to have the option to customize how they watch videos.
- Access to multiple devices
OTT mobile apps are accessible from any device, at any time, and from any location. Except for a constant internet connection, there are no special hardware requirements. Furthermore, it ensures that users never miss out on high-quality content.
- Flexibility in Subscription Costs
Viewers most often feel they are overpaying for cable subscriptions that offer less access and control. However, by using an OTT solution, they can save money while enhancing their viewing experience.
These three key factors have completely changed the OTT market, which is constantly evolving.
Top 5 Reasons to Invest in an OTT App
With multiple benefits available anytime, anywhere, and on any device, the over-the-top app is the turning point of modern entertainment. Some popular OTT mobile apps include Netflix, Disney Plus, Hulu, and others. Any content creator or business with a dedicated audience for their content can create their own OTT apps.
Some of the reasons to create OTT app are as follows:
OTT apps make it easy to manage online streamed data. Once the data is in the hands of the content creator, it provides numerous other benefits such as content monetization, brand creation, providing the best user experience, etc. It is advantageous for content creators or businesses interested in pursuing OTT as a long-term business benefit.
You can offer exclusives. Get access to the original content via the OTT app. However, by providing exclusive and original content on your OTT platform, you can bind your customers to your platform because such content will not be available anywhere. It will not only attract new users, but it will also increase each customer’s lifetime value.
Content Monetization is considered one of the primary reasons for developing your OTT platform, as monetizing content is vital for many content creators and businesses. When compared to the costs of creating content, the ROI on free platforms is negligible. Besides that, monetizing the content ensures that OTT is a viable long-term business opportunity.
Tracking Brand and User Experience
Any OTT business or content creator cannot create and manage their brand on free platforms such as YouTube. Only by hosting your specific content and bringing the best to a different segment of the audience will help you create, monitor, and earn from the OTT brand. Businesses can also collaborate with the best OTT TV app solutions & development companies or OTT platform providers to ensure a high-quality user experience.
Developing a Direct-To-Consumer Business
If a content creator interacts with their audience, builds a database, and starts working on distribution to outside channels for promotions, the direct-to-consumer business can work wonders. For OTT businesses, these mobile apps can significantly reduce customer churn.
The Bottom Line
In just a decade, OTT apps have skyrocketed in popularity and usage, and their growth is undeniably proportional to the advancement of Internet generations. And when it comes to the professional benefits of having an OTT app, an experienced OTT app development company/OTT app builder can help you enter competitive markets.
So, if you have an idea to build a robust OTT app, now is the right time to give it serious consideration because it exemplifies the future of media and connectivity.