The entertainment sector is changing significantly, and companies are seizing the opportunity to develop their branded OTT and VOD platforms in response to the rising demand for on-demand video content.
This is why it’s essential for your company:
- By 2025, the global OTT platform (over-the-top) is expected to have grown to over $210 billion, with a compound annual growth rate (CAGR) of 15.6%.
- Nowadays, more than 80% of US customers prefer live video streaming applications over traditional TV.
- Customers are switching from cable and satellite TV to internet-based streaming services, with over 60% of video content consumed on VOD platforms.
- Streaming video services are expected to account for more than 75% of all internet traffic by 2025.
- The increasing use of smart TVs and mobile applications for entertainment presents businesses with an opportunity to capitalize on the growing demand for OTT and VOD services.
Thus, this blog will examine the critical factors and actions companies must follow while developing an OTT and VOD service.
What are OTT and VOD Platforms?
On-demand content is becoming prevalent in today’s digital transformation environment, and companies are using OTT (Over-the-Top) and VOD (Video on Demand) platforms to interact with their customers more frequently.
However, what is the difference between VOD and OTT?
Over-the-Top (OTT) platforms
Any content delivery system that offers direct streaming over the internet and does not rely on conventional satellite or cable services is referred to as OTT.
With OTT app development services, users may watch movies, TV series, or live events whenever convenient.
Usually, these services are provided through pay-per-view or subscription models.
VOD (Video-on-Demand) Platforms
What is VOD in streaming?
With VOD, consumers may watch videos whenever and wherever they choose. In contrast to typical TV scheduling, viewers have access to a vast collection of films, TV shows, and instructional materials.
VOD offers businesses and consumers options by being either subscription-based (SVOD), transaction-based (TVOD), or ad-supported (AVOD).
OTT and VOD Platforms: Key Differences
| Features | OTT | VOD |
|---|---|---|
| Definition | Uses the internet to distribute content instead of conventional cable or satellite services. | Enables viewers to see video content whenever and wherever they choose. |
| Platform Type | May involve streaming services like Netflix and Hulu, live TV, and more | On-demand video content is the main focus; may include in an OTT platform. |
| Usage | Perfect for providing a large range of media, including on-demand and live content. | Primarily used for watching movies, TV series, and other video stuff whenever you want. |
| Flexibility | Provides both on-demand and live streaming content | Focuses only on content that can be accessed on demand. |
| Payment Model | Subscription (SVOD), Transactional (TVOD), or Ad-supported (AVOD) | Can be free (ad-supported), subscription-based (SVOD), or pay-per-view (TVOD). |
| Content Delivery | Consists of direct internet delivery of TV series, movies, sports, live streaming, and other content. | Focuses on freely accessible content, typically from a library of previously recorded content. |
| Target Audience | Viewers seeking a mix of on-demand and live content | Viewers who would rather watch specific videos whenever they want. |
| Examples | Netflix, Hulu, Disney+, YouTube, Roku | Amazon Prime Video (SVOD), YouTube (TVOD), Vudu (TVOD) |
Also read: Video Streaming App Development Company
SVOD vs VOD: What is it?
SVOD:
- A VOD service in which users purchase a subscription to gain unrestricted access to video content.
- Disney+, Netflix, and Amazon Prime Video are a few examples.
VOD:
- This broader term refers to any on-demand video content, whether subscription-based, transactional, or ad-supported.
- Vudu (TVOD), Google Play Movies (TVOD), and YouTube (free, ad-supported) are some examples.
Key Considerations When Launching Your VOD Platform
The key elements you should concentrate on when launching your VOD platform are listed below.
A. Scalability
Scalability is one of the most crucial elements in creating a successful VOD platform. It is essential that the platform can grow with your audience.
With the elasticity provided by cloud-based systems like AWS or Azure, you can increase server resources in response to rising demand. This adaptability guarantees that you may continue to offer service even as your customer base grows.
One benefit of cloud-based VOD platforms is that they can scale quickly without requiring significant upfront infrastructure costs.
Cloud services like CDNs (Content Delivery Networks) guarantee peak performance and lower latency for users worldwide as your service grows.
This helps in serving both local and global audiences with ease.
B. Content Management and Monetization Models
Content distribution models: SVOD, AVOD, TVOD
Selecting the appropriate distribution arrangement is the secret to making money from your VOD platform.
- SVOD or Subscription Video on Demand: Users can view video indefinitely for a regular cost (e.g., Netflix).
- AVOD or Ad-supported video on demand: Free access to content, but is made profitable by advertisements (e.g., YouTube).
- TVOD (Transactional Video on Demand): Pay-per-view for one-time video access (e.g., Amazon Video rentals).
Monetization strategies: Subscriptions, pay-per-view, and ads
Your target audience and content offering will determine the monetization strategy you use. Take a look at these models:
- SVOD: This is for viewers who wish to subscribe to all-you-can-eat content.
- TVOD: Perfect for on-demand films, users pay for each episode.
- AVOD: Excellent for ad-supported free content that aids in expanding your user base.
C. User Experience (UX) and Interface
A smooth user interface (UI) is essential to guaranteeing that users like using your platform. Make sure the UI of your platform is simple, quick, and intuitive.
Users are more inclined to return if finding, playing, and enjoying material is easy.
Making your VOD digital platform mobile-friendly is crucial as more people want to stream on mobile devices. Your VOD platform must provide consistent performance across devices, whether a responsive online platform or a native iOS/Android app.
Due to mobile optimization, your audience can access your content from anywhere.
D. Security and Compliance
Every VOD platform must prioritize security. To guarantee that user data is secure during transmission and storage, utilize data encryption. Customers’ financial information is protected during purchases due to secure payment channels.
Furthermore, access control systems are crucial for safeguarding your content and ensuring that only paying users can access it.
As a worldwide service provider, complying with international legislation is a prerequisite. The General Data Protection Regulation (GDPR) guarantees that European consumers’ user data is handled securely.
Respecting the Digital Millennium Copyright Act (DMCA) is essential to stopping copyright violations in the US. Stay informed about the latest content licensing regulations in each area where you intend to release your work.
Further read: Live streaming app development company
How to Choose the Right VOD Platform Provider?
There are several criteria to consider when choosing the finest VOD platform provider to ensure the platform fits your business goals.
What you should search for is as follows:
Customizability
Seek out a platform that provides flexibility in features and branding. Customizable features guarantee that you can maintain a consistent brand identity while adapting the platform to your business demands.
Live Streaming Support
Does the service offer live streaming and VOD for events and in-the-moment content? Live streaming features should be your priority, whether your company hosts live events, conferences, or real-time broadcasts.
Integration Proficiencies
Ensure the platform offers smooth API connectivity with other services and solutions your company uses. Integrating with analytics tools, payment gateways, and CRM systems may improve your business’s performance and increase its effectiveness.
Reporting and Analytics
Access to advanced analytics is essential. To make data-driven decisions and enhance your service, you will need to monitor user behavior and content performance. Knowledge of user interaction, popularity of the material, and viewing time can help optimize the user experience.
How Does Scalevista Help Businesses Build a Branded OTT and VOD Platform?
Scalevista is a reliable partner for companies wishing to develop and expand their branded OTT (Over-the-Top) and VOD (Video on Demand) platforms.
With years of expertise in cloud integration, API administration, and bespoke software development, Scalevista has established a solid reputation for providing innovative, client-focused solutions that enable companies to prosper in the cutthroat digital market.
Here’s how we assist companies in creating their own branded OTT and VOD services:
A. Expertise in Custom Solutions
We at Scalevista are aware that every company has different requirements. For this reason, we are experts at developing branded OTT and VOD solutions that complement your unique vision.
Our team of professionals works with you from conception to implementation to create a scalable, well-designed platform that will deliver smooth operation as your company expands.
- Custom Branding: We ensure that your platform offers unique features and design that set your service apart and reflect your brand identity.
- Scalability: As your user base grows, your platform will be able to accommodate the additional demand due to our solutions’ scalable design.
- User-Focused Development: Our goal is to create user-friendly experiences that captivate and hold on to visitors.
B. Tailored Monetization Models
Selecting the appropriate revenue model is one of the most crucial steps in creating a successful OTT and VOD network.
To optimize income, we at Scalevista ensure your platform provides adaptable monetization techniques.
We can develop a model that best suits your company’s objectives, whether that model is SVOD, AVOD, or TVOD.
- Subscription-Based Models (SVOD): Monthly or annual subscriptions that generate recurring income.
- Ad-Based Models (AVOD): Free access to material with advertisements shown while viewing.
- Pay-Per-View (TVOD): Charging consumers for specific content, like a live event or a film.
- Hybrid Models: Combining the tactics above to diversify revenue streams.
C. Seamless Integration with Third-Party Tools
Integrating different third-party systems for payments, customer support, and content distribution is a common element of operating an OTT or VOD service. At Scalevista, we guarantee a smooth integration of your platform with all necessary business tools.
- Payment Gateways: We incorporate safe and effective payment solutions to manage subscriptions, one-time payments, or ad revenues.
- CRM Systems: Track customer behavior, increase engagement, and streamline user administration.
- Video classification, content uploading, and library management are all made simple by content management systems (CMS).
- Marketing Tools: Connecting advertising platforms, analytics, and email marketing to promote consumer acquisition.
D. Ongoing Support and Maintenance
Creating a branded OTT and VOD platform is only the first step. Scalevista offers continuous support and maintenance to keep your platform current and operating efficiently as the market changes.
- Frequent upgrades: In response to market demands, we provide regular upgrades to maintain the security of your platform and incorporate new features.
- Customer support: Our staff is constantly on hand to help with any problems that may come up, guaranteeing that your service will have as little downtime as possible.
- Scalability Maintenance: We ensure your platform keeps growing without experiencing performance problems as your company expands.
Final Thoughts
Investing in a branded OTT and VOD platform offers a fantastic chance to interact with a worldwide audience and maintain competitiveness in the expanding streaming industry as companies adapt to today’s fast-paced digital environment.
As the digital entertainment market grows, selecting the best platform provider that fits your business goals is more crucial than ever.
Scalevista provides customized solutions for companies wishing to create reliable, scalable, and success-oriented branded OTT and VOD platforms.
Do not hesitate to contact Scalevista for a consultation if you require professional advice or assistance in realizing your OTT goal.
To help you thrive in the constantly changing digital world, we can develop your OTT and VOD platform.
Are you prepared to jump in?
Contact us to create a branded VOD platform that can expand with your company.