It’s been a crazy year. After the COVID-19 outbreak everyone life has been changed. Due to social distancing and lock down everyone is supposed to stay at home and there are no such activities for them. Many people have lost their jobs. However, some industries have grown in this pandemic situation. The OTT industry is one of them. After the outbreak there is a big change seen in the OTT industry. OTT platforms profits have skyrocketed.
- According to a study, the global video streaming trends grew by 20% in March 2020, and the US was one of the top contributors to this with a 26% boost in the same trend.
- In many developing countries, where the OTT industry was growing very slowly before the pandemic, now it has been seen more than 60 % push in this sector.
- Many OTT service providers like Netflix and Amazon had to reduce their streaming bitrate in many countries only to manage with additional loads on their servers due to rising bandwidth demands.
If you own any OTT platform then you have also faced some unexpected growth trends especially in Subscription Video-on-demand type. People in quarantine have no activity to spend their time. Here OTT industry has an opportunity and SVOD type OTT has become very popular among them.
The SVOD trends are off the charts. The expected growth of OTT market globally has been forecasted a CAGR of 21% from 2021 to 2028. It was a $50 billion market that is now going to touch the $200 billion soon. What is it you are doing to grow your subscription-based OTT business and claiming a share of this multi-billion-dollar pie?
In this blog you will find some expert level tips to grow your OTT business or even to start an OTT business.
COVID-19 impact on OTT subscriptions
This outbreak has been a curse on the global society, but it has changed the trends and the lifestyle of the people. Now people are more looking towards online ordering, and it has been a digital revolution.
Now people are looking for bundle offers that cost them less For example, if two businesses are offering the same things, but if one is offering something extra like a bundle offer that will add value and people will be more attracted towards that We can take example of many cell phone service providers they are doing the same, offering bundled subscriptions to multiple OTT streaming services along with their regular postpaid plans.
This new behavior is prodding a shift towards subscription business models across different industries and segments.
How to drive OTT subscriptions?
The main thing every business depends on is its pricing and it is the most important thing in the OTT industry. You need to play very carefully on your pricing strategy. It should be according to your target customers and must be market competitive. Your pricing plans must include some basic plans and premium packages. To boost your subscriptions, follow the steps listed below.
1. Encourage first-time subscribers to opt-in for notifications
Notifications does not mean only push messages. Email notifications play a very important role nowadays. Having your subscribers opted-in for communications from your brand can produce incredible results. While email notifications can be used for promotions and important updates, you can rely on push-notifications to engage your users without being intrusive.
2. Device a hassle-free funnel to on-board your new users
After you start getting your sales and acquire some new subscribers after the aggressive marketing, the real game starts are how you have retained those subscribers and look for the new ones. You need to work even hard to keep these users subscribed, the stage for which can be devised right from the phase when they get on-board for the first time.
The best practice to do this is offering the Free Trial to the new users. Now, it’s your choice if you want to collect payment information for auto-billing after the trial period. Though, you must collect their email addresses of the users so that you can pitch them for the future.
3. Bring-in multi-device support
It is a plus point to have some personalized apps for multiple that stand out in the market. OTT platforms are becoming very famous nowadays and many people are using OTT platforms to watch videos and stuff.
So, check for the most popular streaming devices in your region, and put them into the list of supported devices. Here are some devices on which OTT platforms are working like Mi streaming stick, Amazon fire stick, Roku Streaming stick, NVidia Shield TV, Xbox, PlayStation, etc.
Support for these platforms should be in addition to basic platforms –Android, iOS, and WebRTC.
4. Add a personalized content recommendation model
As you know acquisition and retention are very important and it should be strategized likewise. This strategy is precisely for your existing subscribers. You can engage your existing clients by adding a recommendation model box. This can also be important for your QA. You will be getting some actual reviews from your users and clients that can improve your quality of service and users will feel more obliged. This strategy could help in retaining the existing clients and will create a positive word of mouth. You can also model the user-behaviors and watch history to recommend more relevant content to watch?
5. Different subscription plans for different segments
Multiple packages allow you to target different segments of users in a personalized manner. For example, let us say you are offering only a flagship plan with everything included in it: 4 simultaneous screens, 4K streaming, and multi-device support. Here, you might not be able to appeal to the users who do not need all these features.
Hence, there is a better chance to appeal to more users with an optional, limited, and cheaper plan that allows them to avail themselves of only the services or bundles that are viable to them. For instance, you can offer a cheaper mobile-only plan to attract with HD streaming to attract those users who do not use 4K devices or multiple screens.
Similarly, you can create multiple plans with different combinations for different segments of the users. You can give them the option to upgrade or degrade a plan anytime based on their current needs. Remember, you must customize your bundles differently according to the prospects in different regions. For example, a mobile-only plan can do wonders in a region with limited access to other types of devices, but the same plan might not work in a region where more people have access to 4K devices and multiple screens.
6. Make referrals rewarding with coupons and vouchers
Offer some referral rewards and coupons. This will create a positive word of mouth and users will be more likely to recommend to others as they will be getting the rewards. Nowadays if a message comes from a known person like anyone refers to his friend that will gain more attention as compared to the message from an unknown person.
Last, but not least –the quality of everything is crucial
Finally, nothing would work if you cannot keep the quality of your content library and user-experience top-notch. Even the best offers, and cheapest subscription plans would not do any good if users do not like your content, or the platform works like something from the past.
To sort this out- make sure you have a continuous flow of content; exclusive content to be more precise. The subscription business model works like a charm if your users cannot find your content anywhere else. Ensure that your video streaming solution comes with the latest technology stack to support trending features. Besides an intuitive content discovery experience, the streaming platform must come with a competent video player, too. You can only apply these measures if your platform supports such features.