Live Stream growing as big as VOD

Live Stream growing as big as VOD

Live streaming business has developed to become the most loved in the course of a couple of years. Consumers are inclining toward live content to on-demand content recently. Everybody needs to perceive what’s going on live. The transformation started with user-created live content and with Snapchat stories being the pioneer.

Previously, over-the-top (OTT) live content was restricted to games and news just, and in a few sections, it may have been received for religious projects and lecturing sessions as well.

In any case, Facebook, Snapchat, and Instagram took live streaming service to the next level. Watchers are presently ready to appreciate the ongoing content by streaming live instead of the recorded content that can be played on-demand.

Live video streaming is pertinent for broadcasting live projects, occasion coverage and so on. It’s more helpful for individuals who are in various locations and need to get up to acquire a program shot somewhere else. This, however, diminishes the cost of relishing a program by dodging costs caused due to commute, lodging, nourishment, time, and others.

How about we see why Live Streaming and the live stream service have picked up fame?

  • Live content does not suffer from lag. It empowers ongoing conveyance of content to a few gadgets over the globe in the meantime. In any case, some live streaming stages offer a deferred live support of games content with the expectation of free clients and in the meantime a constant stream with zero lags for premium clients.

 

  • Live broadcasters can talk to watchers on user-created live streaming stages, for example, Bigo, Facebook Live Streaming, Live.me, and so on. This makes live content more responsive and intuitive as watchers will have the capacity to bring up issues and broadcasters can react to them and connect with their issues.

 

  • Although live streaming administrations, for example, Periscope or Twitter Live Streaming enable users to spare their broadcasts for some other time, individuals can pick not to demonstrate their content again. This attitude can enable viewers to drive viewership because of the concern of missing out on a great opportunity among their millennial fan base.

 

  • Viewers look to wind up being a part of stories as and when they happen. This is one major motivation behind why applications streaming live video are a sensation today. For viewers, getting their most loved celebrities live in real life presents to them a continuous fan encounter that they unquestionably would prefer not to lose a major opportunity for.

 

  • Viewers would now be able to end up being a portion of their most loved stars’ life in a flash. Broadcasters can stream occasions like photo-shoots, celebrity gatherings, get-away, and also include their devotees as a piece of their life. Organizations, then again, can give a sneak look into their corporate culture and hardworking attitudes utilizing live streaming talks and sessions with top administrators.

Live streaming brings a practice that does not stop on the double; being an innovation that captures occasions and emotions live. It ordinarily keeps running on HTTP Live Streaming convention or Real-Time Messaging Protocol and requires a detailed content delivery chain that can procedure a live stream support incorporated into a streaming stage.

Video-on-request (VOD) has cemented its place in the OTT business by enabling individuals to watch anything whenever. Netflix remodeled the VOD situation worldwide and afterward, the online streaming business boomed. A couple of years back tech organizations and micro-blogging destinations, for example, Twitch, Facebook, and Twitter drew out the genuine energy of online live streaming.

Twitch let gamers broadcast their gaming sessions on the web and it was an immense hit in the realm of video gaming. Gamers around the globe could watch and learn best practices, grabbed tricks and tips, and stalked professional gamers for self-improvement.

Not quite a while later, Facebook thought of a live streaming service that enabled any client to go live on air and audiences could interface with them.

To top this, committed live streaming stages came up in the market, Bigo being the principal mover. The stage not only empowered live broadcasts and viewer connection as well as brought online gaming into the act.

Clients could manufacture profiles in the live streaming application and in light of their usage and fame they were granted badges and level ups. This urged more clients to join the stream and they started paying to achieve more elevated amounts.

Just after Bigo which is generally well known all inclusive, came Live.me and YouNow. Periscope is another player in the live streaming section that spotlights on labels like travel, games, and music. Different applications and sites have come up off late that give stages to average people to communicate live and possess their own live stream ideas and gears. All in all its just a totally new involvement.

Live online video has outpaced the development of VOD, with a 113% expansion in promotion development since a year ago.

For mobile live streaming, normal time spent is 2.8 minutes for VOD while it’s 3.5 for live streams. On tablets, normal time spent is 4.1 minutes for VOD while it’s 7.1 minutes for live streams. On the PC, normal time spent is 2.6 minutes for VOD while 34.5 minutes for live streams. Obviously, live streaming eclipses VOD in terms of utilization on all sharing media.

Another fascinating reality is that watchers take 8 times longer observing live video (42.8 minutes) than on-demand video (5.1 minutes).

80% of viewers like to observe live video from a brand than experiencing their blog, and 82% of viewers favor live video from a brand than read their social posts. 45% of live video groups of onlookers would pay for living, elite, on-demand video from a most loved group, speaker, or entertainer.

Disregarding the business utilization of live streaming, generation and utilization of live content have taken off huge in the US and Latin America, however, APAC is by all accounts the problem area, particularly China.

With the dawn of the year 2018, live streaming business in China surpassed USD 4.76 billion. As per Wu Jiangbo, leader of the service’s Cultural Market Department, live streaming income enhanced by 39% since the earlier year.

Games live streaming platforms has been awarded as one of the greatest upgrades and it is only one stage towards the microscopic approach which we can find from live streaming and live streaming stages.

The live streaming pattern has turned out to be popular to the point that Nasa and SpaceX are in chats with top tech players to utilize live streaming stages and fine-tune their approach towards the crowd by upgrading their own knowledge. It would be exceptionally intriguing to see how this configuration of over-the-top (OTT) content does in the years to come.

Going through these details you can certainly find out how the live streaming business is growing as fast and huge as VOD.

How to Start Video On Demand Business

How to Start Video On Demand Business

First things first, setting up a video on demand platform isn’t a tremendous feat reserved for the high and mighty. It’s a real possibility for anyone intending to pursue an audience in the online video space. The best part? Thanks to turnkey frameworks, your tools are already ready for you. The internet is brimming with ideas and innovations and the e-marketplace is an abundant store for turnkey technologies. One that stands out is StreamView, a bellwether framework that can have you set up your on-demand video platform within days. The advantage with picking a turnkey video on demand platform is that your user interface, customisation features and experience building tools are yours to the tailor. And you get to pick and choose content that goes into each template.

There are several things to consider on the road up to launching a video on demand business model. Start by addressing a few questions:

  • Is your content repository adequate to sustain a video on demand service?
  • Does your content belong exclusively to you?
  • Have you established notable partnerships for new and cutting-edge content?

Once you have taken stock of your content repertoire, it’s time to piece together a platform for your users. At this stage, it’s important to note that purchasing a turnkey technology could prove wiser in the long run. The advantage? Well, the turnkey framework is products of years and years of development, design, and refinement. They work on a license model, meaning that you acquire a copy of the framework that is free to be customised on your terms. A turnkey framework is a more economical, aesthetic and functional option than a self-crafted technology.

Here are some steps to build a successful video on demand platform:

Step 1. Pick a Good VOD Platform

Your video on demand platform provider will supply the wings for your business and so, it is crucial that you pick a service that supports you around the clock. An effective way to sift through options is to keep customer service as a primary criterion. Certain video on demand platforms offers superlative customer service controls when compared to others. StreamView, for instance, ensures 24×7 technology support, seamless feedback handling, and professional troubleshooting services. Make a list of criteria that are important to you and draw up a checklist against each of your shortlisted videos on demand platform providers.

Step 2. Explore Potential for Diversification

With the internet burgeoning with communication tools, it is a good idea to set out a future path for your business with respect to the communication. Think of adding communication tools like live streaming and video sharing to your roster. The beauty of turkey technologies is that they are mostly compatible with associated frameworks. If we go back to the example of StreamView, you’ll see that the framework is one of a trifecta of technologies. Of the other two, one is for live streaming and the other, for video sharing. This means, that if you ever plan to introduce one of these forms of video to your platform, all you have to do is slide in an additional technology layer and you’re good to go!

Step 3. Set Up a Monetization Model

Once you’ve woven your content strategy together, the next step would be to set up a quantifiable marketing model. There are several tools that you could include; the key is to assign metrics for every idea that you want to push. This is the best way to measure the success of any campaign.

Tool 1. Advertising

Advertising is the most preferred monetization tool employed by companies that ride exclusively on content. And for good reason. Advertising can garner significant revenue for a content-based business as long as its audience is sizeable. A point to consider here is that ad-based revenue can be sustained only by volumes because a single advertisement contributes very little revenue. A video is an expensive form of content and you may spend exorbitant amounts of money sourcing, creating and producing content for your video on demand platform. Determine how many users you’ll need to reach in order to break even for each piece of content. If your number is far higher than your current user penetration, consider an alternate means of monetization until your user base reaches the required threshold. If you’re not sure where to start, a good yardstick would be one million page views per month.

Tool 2. Cross-Platform Production

The power of video has caught on for not just those attuned to online video, but even stakeholders of alternate content platforms. More and more content entrepreneurs and marketers are beginning to add video to their existing content mix. Many of them, however, don’t have the expertise to create quality videos. That’s where you come in. By catering to corporate clients seeking video content, you could cross-promote your brand while also charging at a per-video rate.

Tool 3. Subscription Model

Coveted content can sell well on a subscription model. However, introspect to gauge whether your content really warrants a subscription. Would people fork out money for your service? There are plenty of video on demand services in the market. What value can you add? To establish a sustainable subscription model, you must introduce novel content, seek exclusive rights for premium content and create in-house shows. Anything that you can offer that your neighbor can’t is a good differentiator.  

Tool 4. Pay Per View

If you’d rather sell your content on a piecemeal basis, pay per view is your answer. This is the format you’d find on iTunes, where every item is priced individually. If you haven’t got a vast archive of content, this is a good model to adopt, because you can still engage with users without going all the way.

When it comes to picking the technology backbone for your video on demand platform, you should make several considerations. For starters, find out whether your shortlisted VOD platforms come with inbuilt content delivery networks. A content delivery network is a web of global servers that can deliver your feeds seamlessly to various corners of the globe. So, if you’ve got a considerable international audience, this is a worthwhile point to note. Some technologies also come with a slew of superior support features like intelligence and analytics tools that could come in awfully handy.

When you are on the path to starting a video on demand service, there are a variety of factors to consider: conventional marketing, technology, influencer-led promotions, referral programmes. The list is endless, really. By picking a specialized prebuilt technology like StreamView, you can channel your energy into building the foundation for your video on demand platform. It’s remarkable how quickly and easily you can breathe life into your brand. All you need is an idea.

Netflix VOD Giant Business Model Revealed & Why You Should Create Video Streaming Services

Netflix VOD Giant Business Model Revealed & Why You Should Create Video Streaming Services

Netflix wasn’t started in an arbitrary manner. In its near twenty years, a lot has changed for this Video on Demand (VoD) giant. It started as a DVD and Blu-Ray rental service and in 2007, Netflix made its foray in streaming media market. The year 2013 can be considered a breakthrough year for Netflix because Netflix made two important developments: Apart from adding television and film production, it looked set for online distribution of video content. Today, Netflix stands as an epitome of timeless Video on Demand (VoD) service. Netflix is a venture like no other; its presence in 190 countries with over 85 million paid subscribers speaks volumes about its success. As a matter of fact, Netflix competitors do not consistently record huge revenues. Amazon Prime is a first class exception though. Truth be told, Netflix Business Model and Netflix business plan are perfectly imitable and if anything, imitation is the greatest form of flattery.

Netflix Business Strategy:

Legend says that the CEO of Netflix, Wilmot Reed Hashtings, approached BlockBuster in 2000 for a partnership. BlockBuster denied the offer and as it panned out, BlockBuster was annihilated completely by Netflix in 2005. While it has been a sorry state of affairs for BloackBuster, Netflix has been trumping almost every video streaming and video on demand service with its best of the class business strategy.

Netflix business strategy can be broken down into three simple points:

Produce: Invest in producing awesome content

Purchase: Purchase and acquire licenses of popular TV series and movies

Leverage: Leverage content distribution benefits   

Netflix, being the undisputed kingpin of the Video on Demand market, has the courage to start its own “Netflix Originals”. And guess what, House of Cards and Orange is the new Black have mustered enough audiences and became crowd pullers. As far as its external funding is concerned, Netflix raised approximately $200 million through equity financing. Debt financing is the sister of equity financing and Netflix raised $1.8 billion through debt financing.

Netflix Business Model:

Popular content studios such as Warner Bros, Fox Studios etc., produce very good content and quite obviously, they look for distributors who can distribute the content to massive audiences. Now, Hollywood is a huge industry which hinges predominantly on two distribution partners: Movie theaters/multiplexes and DVD selling companies. Not so long ago, Hollywood industry added another distributor partner- Online paid subscription sites. This is where video on demand sites such as Netflix, Amazon Prime, Hulu etc., come into the picture.

Video Streaming Services

The interplay of licensing deals and rights purchase is often much talked about. Here is a brief on how licensing works:

  1. Assume that I am a content producer. Naturally, I invest a substantial amount to produce super fine quality content.
  2. I strike deals with movie theaters and multiplexes and subsequently sell premiering rights.
  3. A clause on commission i.e., the percentage of box office revenue to be collected should be clearly detailed out.
  4. I also make money by striking deals with DVD selling companies. Of course, my earnings are in the form percentage cuts.

According to The Wall Street Journal, Netflix is the single largest purchaser of licensing rights. It is followed by Amazon.com and Hulu.

Netflix’s Subscription Business Model:

Netflix Subscription Model

Netflix business model entails its subscription based business model. Here is a brief on the same:

  1. To begin with, Netflix buys content from content publishing and content producing studios.
  2. Netflix streams content. Users who wish to view the content should purchase a monthly subscription plan. There is another alternative available to users- Pay per Use
  3. Netflix tries to increase its subscriber base through cautious and enchanting marketing efforts.
  4. Money received from subscribers is used to buy more and more content.
  5. After gaining immense popularity and stardom, start producing own content. Strike licensing partnerships with other media channels such as Colors Infinity. For your information, House of Cards and Orange is the New Black is being aired on Colors Infinity.
  6. To tap the non-subscriber market, rent out DVDs. Rental money is a source of income not only from non-subscribers but also from one-time users.
  7. Streaming formats are not uniform. Netflix is known for converting one streaming format into multiple commercial streaming formats. And interestingly, Netflix makes BIG money through this model.
  8. Another inherent element of Netflix’s revenue model is strategic product placement. For instance, season 1 of House of Cards had a plenty of product placements featuring Play Station 4, car rental ads etc.

Thanks to its superior video streaming services, Netflix has an estimated revenue of $8 billion and not astonishingly, the video on demand giant spends a significant chunk on content acquisition.

Why You Should Create Video Streaming Services:

In the earlier paragraphs, I have quantified the earnings of Netflix. I would like to substantiate my point with yet another interesting estimation – the market for subscription based economy tools is touted to touch $100 billion. When I mean subscription based services, many things such as subscription based auto insurance, car rental services etc., come under its umbrella. For all intents and purposes, subscription based video streaming business model is recession free. This is because people do not buy the complete package in one single payment. If anything, they enjoy the flexibility of turning off and on a service.

Remember, it is not possible to get instant brand recognition. You should be sure that you have a significant chunk of audiences ready to consume your content. Also, you should procure rights to all the content you wish to stream. After ticking these two checkboxes, you should definitely then think of starting a Netflix clone.

So, what do you require to start a massive Video on Demand (VoD) site like Netflix?

  • Content Distribution Network: A content distribution network stores all your video content on servers spread across various geographical points. CDNs are scalable. In other words, if traffic to your website is high, CDNs will be capable of handling it with ease.

  • Payment Gateways: Popular payment gateways such as PayPal, Stripe, Braintree etc., should be incorporated to handle billing and subscription based payments

  • Data Analytics: Presence of this module is incredibly imperative. This module throws insights on who is watching what, how often and how long are audiences watching, etc. Such insights help you plan and promote your programs. You should take all the insights into consideration before producing or purchasing new content

  • AdManager: Proper ad positioning is important. This module categories ad based on their performance- high performing, non-performing and medium performing.

  • Data Hosting: If you are embarking on a video streaming service business, it is important to have a place to host content.

  • Admin Panel: You cannot do away with this module. This module helps you grant and revoke viewing permissions to paid and unpaid subscribers.

  • Multiple Monetization Channels: The very purpose of running a Netflix-like business venture will be defeated if there aren’t any monetization channels. Apart from having an avenue for subscription based viewing, there should also be an avenue to facilitate pay-per-view schemes. Another monetization feature is the presence of banner ads. If viewers click ads, you make decent money.

  • Encoder: This module is required to convert information or data into one format to another format.

  • Search Engine Optimization: To get ranked in search engines, digital marketing efforts should be exemplary. A built-in SEO module will ideally help admin control and set SEO setting for keywords.

StreamView

Well, the list goes on. The job of building a Netflix clone site from scratch is tedious. Most importantly, it is extremely difficult and to be upfront, very expensive. It therefore makes a lot of sense to go with a turnkey software solution like StreamView. StreamView is equipped with the following three channels that let you upload videos in bulk:

  • Amazon S3 bucket
  • YouTube Links
  • Normal Uploads
  • Website Links

Yes, there are several other options available in the market. But not every option is known to minimize your content distribution efforts like how StreamView does. Please visit StreamView for further details.

We can help you reach the pantheons of glory and success. If there is anything troubling you and your venture, do not hesitate to drop a line or two in the comments section. We shall help reply in a day or two. Subscribe to our newsletter. Keep watching this space for insights on video streaming business. Cheers!