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How COVID19 Transformed Online video streaming Behaviour

How COVID19 Transformed Online video streaming Behaviour

By now, it is common knowledge that the COVID-19 pandemic has led to a big shift in online media consumption, in all forms. Businesses across the online entertainment space are spending a lot of effort to keep users engaged. Video streaming statistics show that the online streaming services market is projected to grow to $149.96 billion during 2020-2024 progressing at 18% during the period. 

Online consumers, particularly users of Disney + and Netflix are spending dramatically more time browsing these services. Platforms streaming video on demand continue to invest in creating their own movies and TV series to cater to their growing user bases as it is becoming increasingly important to understand the changing interest of viewers as the pandemic continues. 

As we already know, people are spending more time online during the Coronavirus pandemic. 55% of online video streamers said that they have been viewing videos while 47% of viewers spend more time watching broadcast TV. Whereas, over 42% of viewers said that they have been watching streaming services more during the pandemic. This data also indicates that people have discovered new interests during the pandemic. 

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Source

The impact of Coronavirus pandemic on viewing habits

Online users seem to escape the continued anxiety around the Coronavirus outbreak by spending more time on online media and increasing the time they spend on digital devices and video streaming platforms. Although each streaming video on demand service attracts viewers looking for different types of content, many have been discovering new genres they never thought they would enjoy. We have gathered together a series of data insights across the video streaming spectrum to understand key patterns of how viewers are responding to the current changes. If you are looking for how to start a video streaming business, analyzing these insights can help you deliver high-quality viewing experiences for your viewers in times of pandemics like these.

Users like it when genres blend

In the initial days of the Coronavirus outbreak, Netflix dominated the video streaming landscape with its own show, Tiger King. The show covers documentary, crime, and cringe comedy which might have contributed to its success. It seems like Netflix users of today want to see more content in diverse categories. Most users prefer watching fantasy content, adventure, documentary, or drama. The Majority of Netflix viewers spend more time on the streaming platform exploring multiple genres. This implies that if you are building a VOD platform, it is important to integrate a diverse range of content in your streaming service to satisfy the varied interest of your audience. 

Need for better streaming quality

Sudden increase in the number of viewers can have drastic effects on the quality experience that viewers have. As the traffic increases, the streaming quality must increase as well. To understand how the traffic affects streaming quality, you must understand video streaming and how it works. Video streaming allows viewers to watch videos without actually downloading the media. With the use of content delivery networks, video providers must be able to improve streaming performance and reduce the buffering time according to the incoming traffic.

So how does online streaming work? Just like any other information that is broadcasted over the internet, video streams are broken down to small chunks of data packets. Each data chunk contains a small piece of the file that is sent to the video player of the client device’s browser that interprets the flow of the data. When compared to transmitting text-based content over the content, sending videos calls for a faster method of transmission which gives importance to reliability over speed. Hence the VOD platforms must have the right technology and tools to handle the traffic spikes in the VOD platform. 

What are people watching on VOD platforms?

As online viewers are spending more time at their home during the lockdown they would watch more content, and the type of content being streamed will also be altered. 

Let’s look into the type of content people are watching and the changing viewer behaviors during the current pandemic. 

News

The interest of viewers in live news content is increasing. As the whole world prepares for the pandemic, people tune in to video streaming platforms to tune into current news. The main topics of focus on VOD platforms are politics, world news, entertainment, technology, science and health, business, and sports. Most news streaming platforms cover multiple sides of sites thus giving the viewers balanced and fair coverage, which is what most viewers are looking for. 

Religious content

In the face of the COVID-19 pandemic, religions are embracing online communities and live streaming to connect with the congregation. While the transition was easy for congregations that had embraced digital tools and live streaming, others have struggled to adjust to the digital experience. However, the advanced modern technology and the ease of access to VOD platforms allow making this transition smooth for all. 

A decade ago, religious websites were not commonly used by people, but today considering the global lockdown and restrictions to access the church has caused a significant increase in the adoption of religious streaming services by people across the globe. Video streaming statistics show that about one out of five adults consumes Christian online media on a daily basis. 

Fitness

The COVID-19 pandemic has left millions of people around the world adjusting to life indoors. As fitness studios are shut down, most of them are shifting their classes online In response to the pandemic, a variety of video on demand services have emerged to ensure people can continue working out while social distancing. Popular fitness studios across the globe are offering their customers online services instead. If you are planning on how to start a video streaming business, you can consider building a fitness platform if you are already in the fitness industry. 

Here is the share of adults who watch more online exercise videos during social distancing during the COVID-19 pandemic in the U.S.

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Sports

The COVID-19 has changed how sports fans participants engage in sports events online. Some sports leagues have resumed with others to follow as the fans cannot gather in the galleries until the spread of Coronavirus is under control. Sports broadcasts are harnessing the power of technology to connect both online and offline fans to present the sport in a much more attractive and engaging way during and after the pandemic. 

Conclusion

The culture has gone virtual in the new norm of COVID-19 pandemic and social distancing which can be seen in the rise in usage of VOD platforms and Facebook and Instagram Lives. The worldwide lockdown has also led to a shift in viewer behavior, specifically in terms of demographics. However, these are testing times for both viewers and video providers alike. In unpredicted circumstances like these, the need for a backup plan, accurate, and reliable data is becoming more important than ever. 

Video streaming providers who can react quickly to the streaming needs of their viewers have the unique opportunity to connect with users as they adapt to new scenarios. If you are planning to start a video streaming business, now is the right time as the future of streaming is quite bright. If you are looking for any guidance to get started with your video streaming business, please get in touch with us, our expert team is here to guide you through the entire process. 

White Label Video Streaming: How Does It Work?

White Label Video Streaming: How Does It Work?

Video streaming, both on-demand and live are essential tools for businesses of all types. As major networks and studios continue to launch their streaming services, you need to offer content libraries broad to attract new customers and retain existing customers. 

Moreover, the COVID-19 pandemic is contributing to the remarkable growth of video streaming marketing due to the rising adoption of streaming as more people are subscribing to these entertainment platforms. To point out, the video streaming market is expected to grow from $42.60 billion in 2019 at an annual growth of 20.4% from 2020 to 2027

Here is what Asia pacific video streaming market size looks like from 2016-2017.

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Source

Considering this immense growth of the industry, many digital media and broadcast providers are putting in their efforts to build new platforms for customers to access different types of content like music, videos, and other types of entertaining and informative content. The emergency situation COVID-19 has positively impacted global video streaming growth and the adoption of white-label video streaming in general. 

What is white-label video streaming?

A white label product is something that is manufactured by one company and sold to other companies to be reused and sold as their own. When it comes to video streaming, white-label streaming means broadcasting your content with customized features and branding of your own. 

Simply put, white-label is a term that refers to something without branding. For example, a video streamed from youtube will have its logo on the player.  

Now, what is a white-label platform? A white-label video platform is an online video platform that comes equipped with a white-label video player and the necessary tools to customize it according to your needs. When your audience watches your content, they will associate your brand with the content and not the service you used to host or stream it. 

With easy-to-navigate online video platforms and new integrations, white-label video streaming no more requires technical expertise to get started. Whether you are offering video on demand or live streaming solutions, you can benefit from a white-label streaming service to promote your unique video content. 

Advantages of using a white label video streaming

The advantages of white label streaming to business are several. While label streaming platforms do not just offer professional video players for video on demand and live streaming solutions, it also offers offer branding solutions, video monetization, and a lot more. 

In particular, white-label video streaming allows you to add your logo to your video content which helps to facilitate greater recognition of your brand to your audience. It also supports the aesthetic and functional personalization of the website in terms of colors and dimensions. The fundamental idea of white-label streaming is to allow broadcasters to maintain ownership of their content through the streaming process both from the customer and legal perspective. Not just that, there are more advantages to white label video streaming. Let’s look into those. 

Control over the content

You might have heard stories of videos or live streams taken down from major platforms without any prior warning. The problem might not be always about copyrighted content. Your content could still be taken down even if you own the copyright or follow the rules. Paid solutions generally don’t monitor the content in the same automated way like social media platforms or other free services do. With white label video streaming, you have control over the content and if you meet all legal requirements, you can reduce the risk of your content being taken down without any explanations. 

Advertisement free watching experience

Most free platforms allow you to host your content for free. Instead of a monthly fee, you pay for it by allowing advertising on your videos. But, you won’t have any control over the content of advertisements either. It could be advertisements of your competitors or something not relatable to your content. 

In both cases, you might lose your customers to your competitors. If you have watched videos on youtube you might have noticed the advertisements that come before the content, in the middle, or at the end. Some ads might be non-skippable as well so your audience might stop watching your videos. With white-label platforms, you won’t have to give someone else the control to interrupt your content. 

You choose the quality

Free services put limits on what you can upload or stream Thye can limit the file size, playing time, bitrate, or support a few video formats. When it comes to live streaming, it can restrict the resolution, streaming time, bitrate, and the number of viewers. However, white-label streaming service allows you to choose the quality of your videos, streaming time, resolution, playtime, and other factors that you cannot get with a free service with limitations. 

Control over video placement 

With white label platforms, there are no limitations on content placement. If you want to place your videos on the homepage of the site, you can place it there. Or if you want to put your videos behind a paywall, you are free to do it as well. The player you use is customizable so you can personalize it to deliver the viewing experience you want. 

Video monetization

With a built-in paywall of the white-label platform, you can accept payment in the player and your viewers can easily pay for the video content. This built-in paywall integration allows you to control rates, offer exclusive offers, and offer easy access to your content. 

Conclusion

If you are planning to invest in creating videos for your business, it is worth using a white-label platform that allows you to maintain control and ownership of your content. 

These affordable streaming solutions are designed to offer your streaming services the support you need to establish a successful position in the industry. With white-label streaming, you can customize your video player with your branding, colors you like, monetization integrations, and more. Not sure whether to use a white label streaming service or not? If you need assistance in choosing a white label solution for your video streaming business, get in touch with us for further guidance. 

7 Reasons To Start A Video On-Demand Business in 2020

7 Reasons To Start A Video On-Demand Business in 2020

The transition that is happening in the digital landscape where people are consuming videos more than ever before offers a lot of new opportunities for businesses. The strong increase in internet speeds and devices that supports high-quality video consumptions is giving viewers more control over when and where to watch a video. With the trend of watching videos through smartphone apps gaining remarkable attention, an entire industry based on on-demand video streaming platforms has emerged in recent years. Content providers can leverage these opportunities by providing their offerings via VOD platforms. 

If that is not enough, there are 7 reasons to start a video on demand business in 2020. 

1. Demand Never Drops

Just have a look at the incredible numbers of Netflix to know that it has already replaced the broadcast TV as the center of peoples viewing culture. With over 183 million subscribers spread across the globe, Netflix features the highest-rated entertainment shows. 

In the recent coronavirus quarantine times, all home entertainment services like Netflix, Disney+, Amazon Prime, Hulu, etc. are seeing higher viewership and increased member growth. If you are thinking about how to start a video on demand business, there is no better time than now. There are reasons for that- this demand is never going to end, but is only expected to rise tremendously in the coming years. 

2. Flexibility and Convenience

Video on demand platforms like Netflix is accessible to everyone, anywhere, and at any time. Users can access the VOD platform with a single button click using the device of their choices like smartphones, laptops, desktops, tablets, or connected TV. No matter how wide is your user base, all of them can enjoy unlimited access. Offering worldwide connectivity and accessibility means you will have a broad global audience and can grow your business as a profitable one.

3. Quick and Low-Cost Setup

It is true that if you are developing an on demand video streaming platform from scratch, your VOD platform can cost you thousands of dollars. However, you necessarily don’t have to follow this development approach. 

Consider creating a subscription video on demand service using a white label solution to customize your VOD platform according to your requirements. All the basic and advanced features would be included in the purchase and you can customize the design and features. When you start out, begin with minimal features and add better functionalities as you grow. Like every business, you need to consider some operating costs as well like domain and hosting.

4. It is really profitable

Having your VOD business is a lucrative revenue stream that can help you make a lot of money. Your content needs to be really good though, and you have to invest in marketing efforts to bring in audiences. If you are planning to create a subscription video on demand service, you receive a steady stream of income of every month provided that you have a stable user base. 

Let’s look at some of the common VOD business models. 

  • Subscription Video On Demand

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Subscription video demand is the most common business model followed by most VOD businesses. This business model facilitates users to access TV shows and movies. Popular VOD platforms like Netflix and Amazon Prime provide monthly subscriptions through multiple accounts so that up to 4 persons can access the platform through the same account on different devices. 

  • Advertisement Video On Demand

Another business model is an advertisement-supported video on demand where users can access videos for free along with advertisements that play at the beginning, middle, or at the end of the video. For example, YouTube works primarily on this business model. You can use this business model for your on demand video streaming platform if you want to gain more users when you are starting out as the content is offered for free. However, if you don’t have good viewership, the income earned would be quite low. Another alternative is to use the advertising business model in combination with SVOD or TVOD which is going to be briefed below. 

  • Transactional Video On Demand

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Transactional video on demand is one of the flexible business models that allow you to enable customers to pay for each video they watch instead of subscribing to a package for unlimited users. Not all users might be interested in paying for accessing the entire content library. Instead, they would just prefer to watch the content they like. iTunes and YouTube are examples of TVOD business models. 

5. You have Full Creative Control

If you are a media brand or an independent content creator, on demand video streaming platform of your own will give you complete control over the creatives. There are no guidelines you have to abide by, you create your own rules. You have the flexibility to set rules, design your platform the way you want, add the features you like without having to compromise your creative vision. 

And, if you create movies, you don’t have to wait for streaming services like Netflix to buy your films. By putting up your creations on your VOD platform, you can control distribution, marketing, and pricing.

6. Offers Valuable Insights

Being a media brand that produces content, you need to constantly work on improving the customer experience as you expand. Setting up an on demand video streaming platform is not just an effective way to connect with your target audience, but is also a great platform to gain valuable insights about customer’s interests and preferences. VOD platforms come with in-built analytics and reporting tools that help you to collect customer data, including their viewing behavior, browsing history, watching time, etc. A well-structured video on demand business allows you to collect significant data from your audience which you can later use to improve customer experience and thereby refine your offerings.

7. You can Create a Passionate Online Community

If you take any of the popular video on demand platforms, they all have a strong online community which makes them prominent in the market. For example, if you take Netflix, the VOD giant has over 22.8 million followers on Instagram whom they engage using interactive images, memes, and videos. 

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Likewise, by creating a subscription video on demand service, you can also build a community around your niche that you are passionate about. It is easy to bring people together around a topic they love and creating a community that is passionate in that niche is one of the strong and profitable reasons to start a VOD business. 

Creating your Video on Demand Platform

If you want to start a video on demand business, the first step is to create a full-fledged VOD platform to power your business. You might be surprised to learn that creating your own on demand video streaming platform is easy and affordable. If you are looking for faster deployment at effective costs, consider creating your VOD website using white label solutions. White label solutions are readymade scripts or clone scripts with all the standard features of Netflix. StreamView is the finest clone solution to launch your Netflix like website for your users. 

With StreamView, you can customize your website to suit all your requirements from adding features to modifying the front-end UI. Integrate features like support for unlimited users and videos, multiple upload channels, dynamic admin panel, multiple monetization channels, PayPal payment gateway integration, native android, and iOS app, etc. 

Conclusion

With online video consumption increasing rapidly, 92% of marketers believe that on demand videos are an important part of their marketing strategy. If you are a video production brand considering venturing into the niche of video on demand in 2020, think no further. And with advanced technology, it’s easier to do. Make sure you fend the requirements of your viewers through your VOD platform with custom features and functionalities that attracts them to your website. It is not just about the content you have in your VOD platforms, it’s about the experience you offer to your viewers. If you are looking for further assistance in building your VOD platform, get in touch with us. We will help you take your dream further. 

How To Choose a Video On Demand Solution to Power Your Business

How To Choose a Video On Demand Solution to Power Your Business

The popularity of video on demand has revolutionized the way videos are viewed and broadcasted over the web. VOD allows people to watch videos from any internet-enabled device at the time convenient to users. The convenience of viewing entertaining content, educational tutorials, etc. from virtually on any devices from anywhere is the beauty of VOD. 

VOD is transforming itself from a marketing technique and evolving into a famous business model. While Netflix, Amazon Prime, Hulu, etc. are mainstream brands that have built their businesses around VOD but an increasing number of businesses of all sizes and niches are making it a key part of their business model. You can make your videos exclusively available to everyone online or your subscribers only. Basically, the content will remain online and in most cases, extensive video libraries are created.

In this blog, let’s explore in-depth on how to choose the best VOD platform with powerful features and interactive tools that enhances the virtual experience for your audience. 

Why is Video Demand Important for Businesses?

Reports show that the video streaming industry is a lucrative one that is expected to be $70.5 billion by 2021. However, it is not just the business model, but also the efficacy of the VOD platform that makes it very popular. If you are a video production company with a competent business plan, you can start your own VOD platform to secure your own space in the market. Not just media companies, fitness brands, sports brands, educators, food bloggers, etc. have scope to develop their VOD platform to present excellent ways to generate profit from video content instead of just offering it as an addition to basic content. For example, Nia TV is a great example. Nia TV is an on demand fitness platform that offers users at-home workouts and podcasts to embrace a fit lifestyle.

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Choosing the Best Video On Demand Platform Providers

Before launching your video on demand platform, you will have to build a strong library of videos especially if you are going to implement a subscription-based business. You must have a vast library of content your users feel worth to invest in. If you don’t have a large library but want you to launch your business, you can start with an advertisement or pay per view business model allowing your users to watch videos for free or pay for individual videos alone respectively.

While you can leverage free platforms like YouTube which has a built-in audience, creating your VOD websites is the best bet if you want to generate revenue by selling videos online and bringing more visitors to your website.

When you want to develop a VOD platform, it is equally important to choose the best video on demand platform providers. Choosing a white-label video streaming solution that can be personalized according to the requirements of your business is the best bet. Here are some of the important features to look for in your VOD solution to ensure you are signing up for the best deal that offers value for the money you spent. 

Intuitive Search and Smart Recommendations

Intuitive search and smart video recommendations are one of the most important features of any on demand video streaming platform. Intuitive search allows to predict the query in real-time as the user types and suggests the videos similar to videos users are looking for. It also helps to search for videos using titles, categories, subcategories, and genre along with the ability to search for users in their username. Smart and personalized video recommendations are yet another important feature that delivers videos that match to the viewer’s preferences and search history

Unlimited Video Uploads and Categories

A good enterprise video streaming solution must be scalable enough to cater to your growing business. It must support unlimited video uploads and categories regardless of the niche. 

Multi-Screen Support

Look for a solution that offers support for multiple devices to deliver a multi-screen viewing experience with the power of technology. There are video on demand platform providers who offer support for Android TV, along with Android and iOS apps, tablets, and other digital devices. 

Reliable Video Streaming Server

Look for a service provider that supports reliable streaming no matter the device your users use or the network condition. If you want to know how to set up a video streaming server, it is important to know the quality of streaming you want to deliver. Ngnix server is an open-source web server that is used by some of the biggest enterprises like Google, Adobe, Autodesk, Cisco, Apple, Intel, LinkedIn, DuckDuckGo, and more. Nginx server effortlessly converts the HTTP format to HLS and RTMP format for the website, Android, and iOS respectively. 

As the strong points of this streaming server are performance optimization and high concurrency and low memory usage, it outperforms other web servers. Some of the common features of this video streaming server are. 

  • Load balancing
  • Asynchronous processing
  • Reverse proxy with caching
  • Web sockets
  • FastCGI support with caching

SEO Friendly

To run a successful on demand video streaming platform, one of the important factors your enterprise video solution must have is SEO optimization. It must feature SEO optimizations that enable you to bring in more traffic and thereby more exposure to your video platform. Any user who searches for the videos in your platform must be able to easily find it with any common search engines. This is when an SEO friendly solution helps you to optimize your content and videos on Google and Bing. 

Diverse Monetization Channels

An enterprise video streaming solution must be the one that allows supporting multiple monetization channels. Accelerate your revenue generation with monetization models like subscription-based, advertisement-based, transaction model (Pay-per-view), and hybrid monetization model. Flexible monetization support (like the one YouTube offers) allows your platform to monetize through both audio and video streaming efficiently.

Payment Integrations

If you are seriously thinking about how to start a video on demand business, you must expect your platform to cater to users with diverse payment requirements. While some of your users prefer to make payments on your video platform using credit cards, some might prefer to use online wallets. 

Make sure you don’t miss out on any of your users just because they don’t find the most commonly available payment integrations in your video platform. Also ensure that the payment gateway you choose supports different monetization channels like subscription-based, ad-based, and pay-per-view, or a hybrid model that supports your business goals. A secure payment gateway will also make sure it supports different payment methods and make collecting payments from users simpler. 

Dynamic Admin Panel

To run your video streaming business flexibly, you need to have full control over your business. A dynamic admin panel is the most significant aspect that helps you to control your account, videos, and users on your video platform. 

It also helps in controlling the monetization aspects of your platform and collecting commissions. A powerful admin panel will also allow you to convert high-resolution videos to a lower resolution when uploading the videos if necessary making the uploading process fast and smooth. 

Referral Programs

When you are launching an on demand video streaming platform, it is important to gain new users and referral codes work great for this purpose. Recommendations help to bring in new users to your video platform. When a new user registers to your video website using a referral code, your platform can offer some credits to them which will be stored in a built-in wallet. Look for an enterprise video streaming solution that offers this important feature. 

Native Android and iOS Application

As we live in a smart digital world, a good number of your users would be those who use mobile devices to watch videos. This is exactly why you need native Android and iOS apps for your video streaming platform to increase your business exposure and promote the growth of your brand. Mobile apps can also be leveraged as a powerful marketing tool in researching and targeting your potential customers. 

Analytics and Reports

The best enterprise video streaming solution features built-in tools for powerful analytics to track the performance of your videos and the platform in general. With this feature, you can easily determine what type of videos are driving more views to your video platform and facilitating better engagement. By analyzing the behavior of your users, you can bring in more exposure and revenue to your business.

Security

The security of your communications is critical. Choose video on demand platform providers who offer solutions with multiple layers of security natively built into the solution like a restriction to access page source elements and console, geofencing, etc. Deploy secure experiences that delight your users with safe and secure navigation, search, and video delivery across all platforms and devices. 

Lead the Video Streaming Industry with your On-Demand Video Streaming Platform

Redefine the way entertainment is delivered to your customers by building your own video on demand platform. If you are looking for how to start a video on demand business, choose StreamView which is one of the best VOD solutions that facilitates creating a professional video website for a competitive price. 

Being a white label VOD solution, it allows you to launch a highly customizable and scalable video platform. StreamView enables you to launch your VOD business quickly with a professional website and mobile apps without putting in a hefty amount of money. Standard back end structure and powerful built-in features allow you to launch your project with ease. You get the complete source code and advanced technology for a single time payment.

StreamView allows you to create a platform that is simple and intuitive to use and can be easy for people with no advanced technical knowledge. Pre-built templates are available to display your videos, which can be customized according to your requirements. Additionally, it also provides all the above mentioned important features to deliver the best possible user experience to your customers.

Conclusion

Hope this blog has helped you figure out the best on demand video streaming platform for your requirements. To make your final choice, take advantage of the free trials to test all the features, and to see if it is compatible with your business needs. If you are looking for an enterprise video solution that matches your unique business requirements, we are here to help you. 

How To Choose The Perfect Revenue Strategy For Your Streaming Business?

How To Choose The Perfect Revenue Strategy For Your Streaming Business?

The greatest secret of a successful video streaming business lies in its business model. A company’s revenue model is the way it makes money. When choosing a revenue model, most businesses wait until the very end of development and simply look at what industry leaders are doing, altering it slightly. But when considered carefully the revenue model can be a very powerful tool and it is highly important to shape it according to your business needs. If you want to create your own Netflix, you must choose the revenue strategy that compliments your streaming business. 

Netflix’s annual revenue in 2018 has hit $15.8 billion continuing to secure the impressive figures Netflix enjoyed over the last decade. By the last quarter of 2019, Netflix generated total revenue of $5.2 billion which is over $1 billion up from what it earned in the corresponding quarter of 2018.  

If you are looking to find out how to start a video on demand website, we will be briefing it in this blog. The business model of Netflix, popular revenue models to follow, costs involved in creating your own Netflix also comes under the scope of this blog. Let’s get started. 

Netflix Business Model

What Netflix succeeds at is known as video on demand, by allowing users to access content like TV shows, movies, and other series instantly through Internet-connected devices like PC, laptop, tablets, smartphones, over the top box connected TV, Internet-connected TV, etc. 

This video streaming on demand giant operates on a subscription-based revenue model where users pay for a monthly, quarterly, or yearly subscription plan and gain access to streaming movies, shows, originals and other content available on Netflix in the Standard Definition (SD), High Definition (HD) and Ultra HD quality based on what they pay for. 

The primary revenue source for Netflix is subscriptions. That is, users pay to access content on Netflix and that is how the company makes money.  Learning more about the Netflix business model will significantly help you in choosing the best revenue model for your VOD business.  Netflix offers 3 different plans for users based on the streaming quality of the content provided. 

Basic– This plan offers access to content in SD quality. 

Standard– This plan offers HD content access to subscribers. 

Premium– This plan allows users to access videos in ultra HD quality. 

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Popular Video-on-Demand Revenue Models

The very first step of learning how to start a streaming service like Netflix is to choose the right monetization model for your VOD platform. What is the best way to charge users to access your content? In this blog, we are going to break down common VOD revenue models so that it becomes easy for you to choose the best one that suits you. Let’s get started. 

Subscription Video On Demand (SVOD)

The subscription video on demand business model is the one that allows users to access an entire library of videos for a recurring fee. This fee may be charged weekly, monthly or even annually. Once a user subscribes to the service, they can watch as many videos as they want until the subscription period ends. Netflix follows this model to monetize its services. Subscriptions are auto-renewable and users have the flexibility to cancel them anytime. This model suits platforms that have a huge variety of entertainment content like movies, TV shows, drama series, TV programs, etc. to engage their audience on a long term basis. 

Pros

One of the biggest advantages of SVOD is the recurring revenue stream that ensures a steady income every month. It also gives you the chance to upsell your users to bigger packages getting more money for your business. 

Cons

While SVOD offers great chances to upsell, it becomes hard to upsell from a cancellation. That means once a subscriber cancels the plan, it can be difficult to bring them back to your platform. 

Advertisement Video On Demand (AVOD) 

Advertisement VOD is the business model where viewers are allowed to watch videos for free but they must watch advertisements at different points throughout the length of the video. Ads are powerful and advertisers generally pay huge amounts for streaming their ads on your video on demand platform. You can also choose your ad pricing depending on your platform’s popularity and the type of content to be chosen for the ad. 

If you are just thinking about how to start a streaming service, it is recommended to design your services based on the ad-based business model. As your VOD platform gains more users, you can expand to other monetization models eventually. 

VOD ads are broadly categorized into pre-roll, mid-roll and post-roll ads. As the name suggests pre-roll ads refer to the ones that play at the beginning of a video. Whereas, mid-rolls play ads in the middle of a video and post-rolls play ads at the end of a video. These ads are generally skippable or non-skippable in nature depending on how the ad network chooses to keep them. YouTube works primarily based on this revenue model. 

Pros

AVOD works the best if you are new to the business as it brings in additional revenue with very little investment of your money and effort. This is one of the most common and easy ways to generate passive income. 

Cons

As ads are everywhere online, too many of them can annoy your viewers. 

Transactional Video On Demand

The transactional VOD business model allows you to buy content on a pay per view basis. It is exactly the opposite of what SVOD is. Instead of paying for the entire content, viewers are required to pay for only the content they want to view, buying a piece of individual content also facilitates users to keep it with themselves either on your VOD platform or download to their personal devices. Alternatively, TVOD can also allow users to rent a piece of content from a video streaming platform for a period of time and once the period expires, they will not be able to access the same content again. The transactional model works with live programming where users purchase a particular piece of content to view it. WWE streaming service is an example. 

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Pros

In TVOD, there is no confusion in understanding what your users prefer. You can easily understand whether there is a great demand for a particular video or a type of content. It also brings in better revenue opportunities for new content releases. 

Cons

In the TVOD model, user retention is a common problem as users have a tendency to pay for particular content and then go off the platform. For the same reasons, it is difficult to push users to purchase new content. 

Hybrid Video-On-Demand Model

When you have a vast library of videos and your platform is getting popular day by day, you can implement a hybrid of different revenue strategies to monetize your videos. You can choose a hybrid of AVOD, SVOD, TVOD, or any combination that works for you. If your audience base is deferred and you want different monetization models to target to suit the needs of different types of audiences, it is best to opt for a hybrid VOD model. You might have a large set of audience who don’t want to pay for accessing content but won’t mind watching ads in between and vice versa. YouTube is one of the best examples of a Hybrid VOD platform. It doesn’t just rely on advertisements to monetize. YouTube Premium is an example. 

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Is SVOD the Best VOD Model to Make Money?

Subscription video on demand is the most common type of VOD service offered by streaming platforms. In 2017, 55% of Americans were using Netflix and 31 % were using Amazon Prime video service. By 2022, it is estimated that over 568.4 million users would be using these platforms. While SVOD is not the only realm of streaming giants like Amazon, Hulu, and YouTube, many new VOD businesses are using subscription models to grow their income and audience. 

If you are looking for different ways on how to start a company like Netflix, it is not mandatory to follow the exact path of Netflix. Choosing the revenue model that suits your business and your target audience is the ideal way to go for it. Next, let’s look into the popular revenue models in the market and understand what suits your business the best. 

Costs Involved in Running a Streaming Business

The question of how to make money using a live streaming app and how much you can make cannot be answered without learning about the cost of expenses and expenditure a streaming business has to incur to get these profits. 

Licensing Cost

To stream popular shows and movies in a legal manner, video streaming websites have to bear a cost to license and acquire content which differs for different types of content. For instance, Netflix reportedly paid $100 million to keep the popular series “Friends” on its service for 2019, almost three more than its previous licensing fee of $30 million.

Production Cost

Unless you are planning to acquire content from content creators, you have to bear production costs for creating your own originals. Offering original series is a great way to evade licensing costs and offer exclusive content to your users. However, the production costs can go higher when producing your own content. 

Marketing Costs

Once your platform is up and running on the internet, you have to compete with N number of streaming platforms including giants like Netflix, Amazon Prime, Hulu, etc. Beating the competition involves a lot of marketing expenditure. Marketing costs primarily including the expense for advertisements, payments to affiliates and device partners, and the trial month fee of every user.

Research and Development Cost

Every popular streaming website invests in the research and development department. For example, Netflix focuses a lot on research and development and that is one of the reasons why they are pioneers in the market with just a subscription-based business model. 

Technology and Development Cost

From the moment you create a movie streaming website and have users visiting your site, you must ensure a seamless and lag-free viewing experience to all of them. Netflix has partnered with hundreds of Internet service providers to localize a substantial amount of traffic. Technology and development costs make up a major portion of the overall cost you have to bear.

It also includes streaming delivery technology costs and the costs involved in designing new applications and other infrastructural costs. Regarding the video streaming server costs of Netflix, it uses its own content delivery network (CDN) called Open Connect, but also depends on the service of top tier CDN Akamai. Data is stored in Amazon Web Services (AWS) where terabytes of storage can be deployed to a thousand servers quickly. It is important to leverage the services of a good content delivery network even if you are not planning on growing fast because you are eventually going to scale. 

CDN offers guaranteed delivery of content to users through a geographically distributed network of servers. It transforms your streaming website into a scalable system to meet any major viewership spike in demand for your content. 

General and Administrative Costs

These costs include the payroll and other expenses on the human resources of the business as well and the partnership fee needed for the administrative purposes of the company. 

Miscellaneous Fee

Besides all of these costs, there can be other miscellaneous costs like payment processing fees. 

How To Price Your Content The Right Way?

Behind any successful revenue model stands a well-designed pricing scheme. It is one of the most critical elements of any business strategy, especially for SVOD services. If you are looking for how to make a movie website like Netflix, pricing your content is one of the important aspects to consider. 

Pricing video will always be a work in progress and with the constant changes in the market, you need to experiment with different approaches. You will get to know your customers and their spending habits as time goes by. To help you with this, here are some tips to choose the right pricing scheme. 

Consider Value and Customer Satisfaction

Building a pricing model based on the value and customer satisfaction will help you make your VOD platform as sustainable as possible. Additionally, offer your users enough choices that will help you to retain existing users while attracting a new audience. Approaches including tiered pricing, freemium, or consumption-based pricing will help your viewers commit to a plan that suits their personal preferences and needs. 

Analyze Your Revenue Goals

It is significant to understand how much would your video on demand business be making in monthly revenue. Make sure to include overhead costs to your goal. 

Consider The Size of Existing Followers

Once you have created a movie streaming website and gathered in a few users, analyze the size of your audience. How big is your current audience and measure the number of followers you have on social media? How many contacts you have on your email list. 

For this formula, use the total number of followers from each individual platform. Your existing audience or the ones you are currently not monetizing is the main revenue potential you are going to focus on as they are our biggest supporters. 

Start With A Low Price Window

If it’s your first time monetizing your services, aim for a low pricing formula. The most successful customers offer monthly subscription prices anywhere between $2-$50. 

Industry and Genre Must Be Considered

The nature of your content will have a direct impact on how you price your content. The best thing is to start with basic market research to see what other subscription video services with niche similar to you are charging their customers. If you are planning to charge higher than your biggest direct competitor, you must be sure that your services are with a significant difference and offer more value to your users in terms of the quality of services. The next thing to consider is your Content type and genre. Each type of content has an industry price average that you must consider unless you offer content that’s obviously more valuable. 

Niche and Specificity Matters

Niche content or micro-niche content to be specific is valued high due to its ideal audience. While small and limited, if a service is very focused on a particular niche, users usually won’t mind paying for that extra bit. 

How to Start a Streaming Service Like Netflix?

You are on the right track of building a streaming solution to create a movie streaming website customized according to the preferences of your audience. The goal is to delight media consumers and ensure all-time technology support to keep your users happy at all stages. 

To build a fully functional streaming website to cater to your global audience, it is best to choose Netflix clone open-source that comes equipped with all the essential features and functionalities. Clone scripts are readymade website script that comes equipped with powerful admin dashboard, web app integration options, Android and iOS native apps to get started in the video streaming industry.  

You can choose the best video on demand platform providers to build your VOD platform who will customize their solution to match your preferences and business goals including the revenue model suited for your business. 

Choosing A Revenue Model For Your Business

In an increasingly complex digital world. You can build profitable video on demand business by choosing the best revenue models that generate more money than you could ever think. The secret is to find the business model that serves both your customer’s needs and your business goals. Some of the best in the world are listed above and you need to pick the one that suits your requirements. We understand how difficult it gets while choosing the right revenue model when creating your own Netflix and the doubts that come bundled with it which is why we help consult on you the same. Get in touch with us now. 

Key Components to Launch an OTT Platform in the US Market

Key Components to Launch an OTT Platform in the US Market

In the age of Netflix, the online audience is constantly looking for on-demand videos. For content owners, launching their video streaming service has become a necessity from a good-to-have functionality. If you are a content owner with a rich video library and have a plan for launching your OTT Platform, building it from scratch is not a great idea when there are actually other brilliant options out there. 

You can create your own OTT and Live Streaming Platform using customizable white label solutions, and launch and manage your OTT apps. While choosing the right white-label OTT platform, it is essential to choose the one that aligns with your business goals and needs as the website is going to be the base for everything. Let’s explore the components and essential features to launch your own OTT platform in the highly competitive US market. 

Categories of OTT Services

At a high level, we can distinguish two broad categories of premium OTT services and envision a distinct set of industry contributors delivering each category of services. 

Mass-Market Services

Mass-market services focus general film and TV entertainment content typically targeting mainstream audiences. As the market expands, the major premium OTT aggregators like Netflix, Amazon, and Hulu will be undergoing increased competition from various incumbents. Major studio broadcasters like HBO now, Sling Television, etc. and media platform providers like Sony PlayStation, are diversifying into subscription services. 

Niche Services

A wide range of niche OTT services are gaining traction across the US market targeting well-defined fan bases and audience segments offering access to the content that is hard to find. Categories of providers include independent aggregators, sports bodies, right holders, and even studio broadcasters with access to unique libraries of film, content, and other niche offerings. 

Things to Consider Before Launching OTT Platform

The idea to build your own OTT business is a wise decision during this time where viewership is moving online. Here are some elements that go into a successful blueprint to build your own OTT business

Define Your Market

This may sound obvious, but it’s critical to set the base for some successful OTT offerings. You must understand who you want to offer content, what your audience is interested in, what they don’t like along with when and where they like to enjoy different forms of content. Even if you already own a large amount of content, careful research to analyze your target audience is essential. 

Content Licensing and Acquisition

This is the soul of your business. You must master some excellent negotiation tactics to get the best content for your money if you are sourcing content from somewhere.

You will have to refer to the information you have gathered about your target demographic to select the right pieces of content that viewers will value. Most importantly, you will have to know what blend of local and regional content you plan to offer, how to get hands-on premium content, and how to accommodate exclusive rights for content that drive viewer engagement.

Building a Platform to Meet Market Requirements

When it comes to launching your OTT Platform, you can build a video platform internally, integrate, and adapt a current platform for your new market and business, or use a third-party platform that meets your needs. If you want to build a platform from scratch, or adapting an existing on internally, make sure to consider the number of internal resources you will have to allocate for an undertaking. 

How to Pack Your Content?

You will need a cohesive plan to promote your handpicked video library. You have spent the time creating or sourcing the content you feel is the most relevant to your target audience. Now you need an efficient way to bundle your content, and figure out the right plan for emerging channels to promote and distribute special types of content. Besides, your content packaging must go together with your pricing strategy. 

Pricing Your Content

You cannot simply choose a random price for your content you think that resonates with your market. It must be based on the scientific research you have gathered. To price your content, the best way, analyze what your competitors are charging for similar content, how many competitors are in the same market, the quality of the content and services you get, what is the cost to acquire your library of content, etc. 

Packaging and pricing your content must go in alignment with the revenue model you choose. The market size and the number of subscribers and viewers you attract will give you an idea of what type of advertisers you can attract. 

Market Your Content

Marketing your OTT service may seem unnecessary, but is critical to building a strong brand identity. If you want to create your OTT platform, you must include marketing as an essential competitor to launch your OTT service. Marketing is one of the crucial pieces for a successful launch. If you build it, you must market it as well. Positioning your service in the market by highlighting key differentiators, narrating your brand story, and stating how unique it is from your competitors will resonate in the minds of your targeted demographic and will grow your subscriber base.

Leveraging Your Demographics

If you have been planning to build a platform, source content, create a dynamic marketing plan and have everything in place, then it’s time to iterate. Utilizing the knowledge you have gathered in demographic research will help you further to define your market and create benchmarks for future performance.

The use of analytical along with the basic information you pull from the viewer’s engagement will help you direct the next steps. It will also allow you to target the experience of each audience. You can integrate your brand story in sync with the everyday behavior of a viewer so that they will turn to your service first. The right data analysis will set you ahead of the competition. 

The Rise of OTT Platform- The Real Benefits

Out of the major benefits of OTT, the most significant one is its potential ability to engage with a younger and larger online media-consuming population than you could engage through traditional TV broadcasts. Here are some of the other benefits of OTT services. 

OTT Viewing Experience Over the Traditional Cable TV

Video-on-demand has transformed the way of experiencing video content over the internet. The OTT platform contributes to revolutionize the way we watch TV. The popular OTT platforms like Netflix, Amazon Prime, and Hulu as taken the viewing experience through high speed streaming content and access to their preferred channel online. 

OTT Leverages Businesses and Enterprises

The trend of the OTT is also expanding its reach to enterprises and facilitating them to communicate with each other for an affordable cost and sometimes at no cost. OTT services play a critical role in holding businesses and enterprise-level apps. Also, they offer some exclusive features that attract viewers and flexibly to accentuate business growth. 

Data Transparency and Micro-Targeting

While traditional TV consumption metrics were based on larger sample size and interpreted data, OTT advertising is more transparent regarding who is watching the delivered content. Not only the OTT service providers can know who is watching, along with other valid data but also know what they are watching when they are watching, and on what device they are watching. This gives the ability to target your ads very specifically to garner the highest rates of return. 

Further, viewers like the ability to choose and feel to have more control or their media consumption including the ads they view. Most OTT media companies offer the ability for viewers to choose between potential ads during an upcoming content break. This not only leads to a better sense of engagement by the audience but also allows your message to reach them better. 

Augmenting Over Sports and Education

Sports and educational industries are the major ones benefiting from a niche OTT platform. The wider distribution of dedicated broadcasting of sports with Pay TV, streaming of rich live content is made simple and more user-friendly. Launching your own live streaming platform that focuses on educational content rather than entertainment amplifies the online connection of students and teachers to leverage online educational activities.

Cloud Hosting

Most of the OTT platform providers are using Amazon Web Service (AWS) cloud services as their premier cloud storage component. The cloud-based solution helps businesses in launching the OTT platform to extend the scalability and consumer engagement to magnify the business revenue. Some solutions also come with integrated CDN which offers great performance on a real-time basis. 

The Powerful Technologies Behind the Success of OTT Platforms 

With more people choosing for OTT services over TV packages, televisions have evolved into OTT services to reach the audience where they are. Have you ever wondered how OTT services deliver such a flawless user experience to the audience? The credit goes to advanced technologies that power services like Netflix. When you create your OTT platform, there are some essential technologies to include in your OTT platform for your business. 

Hosting

Hosting is one of the major factors in deciding the success nature of any OTT video platform. Before building your own OTT business, the importance of hosting is a major factor whether you tend to depend on self-hosting or any other ways. The plan of hosting will affect the difficulty of deployment, where cloud hosting will be more straightforward and self-hosting requires adequate skills and dimension levels. 

Multiple CDN

Choosing CDN is another essential factor that delivers the right content at the right time to the right type of audience. It’s not that all the CDN support all the streaming choices; choosing the right multiple CDN support balances the user loads to reach every geographical audience. 

Streaming Protocol

To stream the content live while launching your OTT platform, you must include multiple streaming protocols for video delivery like real-time streaming protocol (RTSP), real-time protocol (RTP), etc. While RTSP is used to stream live content, RTP transports media data that is negotiated over RTSP. 

Transcoder

Choosing the right encoder is important in offering multiple file formats that are compatible with all platforms and players. Ensuring a better positive user experience is vitally important after successfully building your own OTT business.

Cross-Platform Support

Offering access to the platform on various mediums like Laptops, Smartphones, Tablets, connected TVs, etc. helps initiate and performing the playback at any time, and anywhere. 

Core Features to Include in Your OTT Platform

An OTT platform that powers your video streaming service must have a myriad of features essential to help you launch, manage, monetize, and grow your video streaming service. These are some core features you must look into an OTT streaming solution before choosing one-

Content Management System

A CMS is the most important feature you need to look for in an OTT solution that can help you with all aspects of video content management like importing, managing, and curating content. A good CMS helps to upload and to manage data easily by saving time. It must also offer the option to connect your platform with social media accounts and automatically distribute videos to the properties owned and operated by you through a simple dashboard. The platform must also offer the flexibility to set your own content rules that will allow or deny playback of your videos by geography.

Build and Publish the OTT App

If the platform you choose just offers an API, you have a herculean task ahead to custom develop the apps across all the platforms you want to reach. Instead, look for a platform that has ready-to-use templates and options to customize and adapt your own theme to speed up the time to market. You will end up saving a lot of time and money on developing complicated OTT apps. 

Monetization

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Source: vdocipher.com

You want to build your own OTT business, but how do you want to monetize your content? Your OTT platform must support whatever revenue model you choose. For example, if you plan to offer ad-supported VOD, your platform must have an inbuilt ad-server to manage, prioritize, and set up campaigns. 

It must also support all ad formats like videos, banners, native, overlay, etc. In short, you must choose a solution that supports all monetization models such as subscription on-demand (SVOD), transaction-on-demand (TVOD), advertisement on-demand (AVOD), or even hybrid model to ensure you get the adequate flexibility within the platform as your business expands. Ask about the monetization models as supported on the platform, how easy it is to set up the ads yourself, whether it supports hybrid monetization model etc. 

Reports

Analytics is a crucial part when it comes to managing your OTT platform. If you are looking for different answers about how to launch your OTT platform, look for a solution that gives you metrics around multiple areas including video engagement like total playback, viewer demographics, average playback, device info, etc.

Other metrics include total revenue earned, the total number of subscribers, content performance, consumer engagement, etc. Potentially the platform must give you the essential insights to drive key business decisions. 

User Management

User management is a necessity for any OTT platform, it must have the admin setup to control user access, on-board/off-board users, subscription management, set/reset the password, update the email address of users, set up rules, and a lot more. If you consider the user’s perspective, the key is to manage multiple profiles under a single account, offline viewing, viewing history, etc. 

Video Interface and User Engagement

How your viewers engage with your OTT platform? This is an important aspect of controlling the user experience when launching your OTT platform. While delivering media content, the most important rule in interface design to abide by is – don’t make your viewers think too much. 

For example, Netflix allows users to consume what they want, how they want, and whenever they want. There is no form of interruptions like advertisements in between or any time restrictions. This is where Netflix went one-step ahead of traditional cable services. They created originals and allowed viewers to binge-watch entire seasons and without any ads, that too for an affordable monthly fee. 

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IT Infrastructure

When it comes to IT infrastructure, cloud hosting, security, CDN, storage, built-in marketing tools, customization, support, and social sharing are some of the aspects to consider. Compared to traditional servers, cloud servers are much more reliable and ensure the OTT platform relies on a powerful cloud-based IT infrastructure to offer the necessary servers and storage required to run your streaming service. 

Users, at the same time without any latency issue and must scale up its rising demand. Additionally, look for a platform that offers security options like digital rights management (DRM), and encryption are the most common security system that plays a crucial role in protecting the content from unauthorized access to the content and copyrights. 

Another important factor to consider is the CDN, which is essential for uninterrupted video streaming. The best CDN offers great performance on a real-time basis and must be highly efficient to aid you in giving the right user experience. Look for an OTT and Live Streaming Platform that comes integrated with CDN; it might be a good idea to gauge the platform’s bandwidth capable before choosing one. 

Built-in Marketing Tools

Built-in tools for marketing helps to build enduring value for your OTT website and apps. If it’s optimized for SEO, it helps you score higher in search engines and the rank sustains over time. A platform with this tool is always a value-added choice. 

Subtitle and Caption Support

In the United States, the laws require closes captions for some video content. In the US, section 508 is the law-governing closed caption requirements. For online video, live content that is simultaneously broadcasted on TV is legally required to include subtitles and captions. 

Especially in the educational niche, captions are becoming a legal standard as well. So how to integrated closed captions to your OTT content. First, you must ensure that your platform supports closed captions. 

Customization

If you are learning about how to launch your OTT platform, it is recommended to evolve and adapt quickly as your changing requirements need a platform with flexibility. The ability to customize and quickly build the extensions is important to add a customized feature with ease. 

Security and Anti-Piracy

After launching your OTT Platform, how are you going to protect your content from piracy issues? Distributors in the United States alone have lost over $9 billion in revenue a couple of years back due to piracy issues. By 2022, the number is expected to rise by almost 30%. To offer high security and protect your video content from piracy threats, there are several legitimate options available in the market like encrypted video streaming, digital rights management, dynamic watermarking, password protection, etc. Securing your videos from illegitimate video downloaders online can be the most significant task once you start proprietary content. 

Availability Across All Devices

Viewers expect a quality broadcast experience across all devices during any time of the day. However, how do you ensure your OTT content is accessible across multiple devices at the same time? To be able to offer a seamless user experience, your OTT platform must be able to recognize the devices that make the request and must be able to stream content accordingly. This involves keeping a copy of every video in different formats of different devices and screen sizes.

Support

As your OTT business grows, you need user support from your OTT solution provider in all factors like training, troubleshooting, maintenance, and upgrading. Most importantly, the response has to be instant and must be able to reach out to them via all mediums. Choose a solution that offers constant support and regularly updated via your preferred medium of communication.

Conclusion

The success of your OTT lies in the customization of your OTT platform according to your business needs. Building an OTT platform and establishing yourself in the competitive US market isn’t an easy task, but at the same time, it doesn’t need to be complicated, as well. 

As the OTT market is evolving and expanding, you need a reliable partner to create your OTT platform. It all depends on the right strategy and business value to capture the OTT market. 

Putting together an OTT service is only a small part of the story. Scaling, engaging, and supporting the platform as you grow is equally an important, time-consuming, and expensive task. If you are a content creator or have a rich sourced content, it is best to leverage a white-label OTT platform for your streaming service and focus on making and engaging great content. 

Managing our OTT service becomes easy as you can use a single platform to manage all your content, ads, payments, etc. The best platform allows you to have full content over your videos, monetization strategy and lets you keep 100% of your revenue. Choosing the right partners can reduce your workload and offer you the time to focus on other aspects of your business. Learn more about launching your own secure OTT platform by reaching out to us.