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Top Benefits of Investing in OTT App Development
by Tech Addict Writer, BloggerOver The Top (OTT) applications bypass the traditional distribution systems and are typically related to the media and communication. It's a platform through which content is accessed over the internet without the need for a satellite dish or a cable connection. With the growing acceptance and adoption of OTT platforms, most businesses are leveraging this technology to take advantage of these popular and revenue-generating apps.
OTT platforms have gained popularity because of their inherent ability to show content on-demand anywhere and at any time with just an internet connection. The recent Covid-19 pandemic has fueled the rise of media consumption over the OTT platforms. Some of the well-known OTT apps are Netflix, Amazon prime, and Disney+Hotstar. There are many reasons why custom OTT app development is a rewarding investment.
Online video streaming has transformed the media consumption landscape and has changed viewing behavior around the world. It is driven by the easy availability of the internet, and the widespread availability of smart mobile devices. The global video streaming market grew at an unparalleled rate and in 2021, the video on demand reached an estimated USD 86 billion.
The scope of services under the OTT platform - video & audio streaming, messaging portals, including VoIP services.
There is a whole new market around this and it's getting bigger. Innovators of the apps business model are focusing on its capability to give uninterrupted access to its content to generate greater revenue. Some of the top benefits of investing in OTT app development:
- Booming business opportunity. According to Statista, the revenue in the OTT video segment is projected to reach USD 281.70 billion in 2022 and the largest advertisement segment is video advertising having a market volume of USD183 billion in 2022. The growth and volume in the OTT segment point to a business opportunity that cannot be ignored. The sweeping acceptance of OTT apps has led to a breakthrough for both the media and entertainment industry, leading to big investment opportunities in custom OTT app development.
- Boosting revenue stream. OTT apps are subscription-based and generate revenue and profits from the subscription of users. The media companies operate independently without having to depend on OTT aggregators or third-party apps to stream their content which allows them to generate revenue themselves without any middleman. This makes the OTT business model unique and rewarding with expanding user base and profits. Statista suggests that the revenue for OTT media is predicted to be over USD 167 billion by 2025, more than double of 2019 at USD 83.3 billion.
- Huge customer base. Media streaming has increased exponentially over the years. The Covid-19 pandemic saw subscriptions skyrocket worldwide. The demand for fresh content is also increasing and organizations are taking advantage of this huge customer base.
- Customer segmentation. KYC or know your customer is important for any business. OTT platforms can and do contribute to customer segmentation helping marketing companies target advertisements. Customer segmentation can be based on geography, app retention, searches, wishlist, signups etc.
- Advertising. Advertisements based on customer segmentation can be targeted and user interaction with the ads can be tracked.
- Efficiency. Cable viewing used to be priced on packages offered and customers had to pay for channels in those packages whether they were needed or not. OTT platforms are competitive and customers can pay for the content they watch.
- Technology. The quality of sound, video & connectivity has become better over time due to enhancements in technology, offering the best viewing experience.
It's clear from the benefits that many startups and media companies are and will be foraging into the OTT platform business. The cost of developing an OTT platform depends on many factors like
- Features and complexity of the app.
- Size and geographical location and the experience of the custom OTT app development company.
- Platform on which the app is to be released.
- Technology stack, which is the list of all technology services required to build and run the app.
- Time required for building the app.
- Streaming capabilities - live or on-demand.
While the list of factors is not exhaustive, an OTT platform app can cost anywhere between USD 25,000 to USD 45,000 to develop.
OTT platforms are here to stay and will further develop and expand over time. While Developing and building an OTT app in-house gives the freedom to customize and scale the app as needed, the downside is in time spent by in-house developers, the cost of development and overheads. Using a custom OTT app development software firms can eliminate the cost of building an infrastructure and save a considerable amount in overheads and development costs. Good app development firms understand the common business workflows and can assist at every step of the development way, from management, and monetization to video consumption.
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About Tech Addict 
Writer, Blogger
5 connections, 0 recommendations, 61 honor points.Joined APSense since, November 22nd, 2016, From Vododara, India.
Created on Jun 22nd 2022 23:40. Viewed 376 times.
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