Streaming Media and Telstra have recently published a global survey about OTT around the world, focusing on both content and monetization.
This document explains that there are two main reasons to launch an OTT services offering: it is mainly an offensive approach to attract new subscribers, but it can also be a defensive approach to retain customers (which is especially the case in Europe).
When they decide to launch an OTT service, content providers currently have dilemmas about how to monetize it: they have to choose between various business models. While AVOD is more popular in North America, SVOD seems to be the new favorite business model for Europe and the rest of the world. Concerning the pricing, it has been stable during the past year and this trend should continue over the coming year: global providers appear to be stabilizing or even reducing their prices.
The survey finally analyzes the content strategies. Content providers are convinced that sports and live events are the most easily monetizable content types in an OTT service provider’s domestic market, just before movies and television shows. However, local content is an important differentiator in their home local markets, as they have intimate knowledge of native market needs.
Regarding the strategy, OTT service providers still have several possible variations around business models to test.
To conclude, OTT is still emerging but the best practices are being established now; this is why OTT service providers should keep defining the way they market their content and select the best technical partner to make it easy to generate new revenue streams out of their OTT content investments.