Rapid, multigenerational acceptance of Over-The-Top content is growing as applications mount and content producers jockey for position. Corporations, associations and government agencies are all taking advantage of this explosive and affordable content delivery platform. And big players are making big commitments: Facebook, Twitter, Apple, Disney, Netflix, Verizon and Amazon, to name a few.
Why is OTT rapidly becoming the “it” content platform? Here are 5 key reasons:
OTT is amazingly cost effective.
Launching a traditional cable network is extremely expensive and risky. Most traditional channels take at least five years to make it into the black, if they even survive that long. With traditional cable networks, about half of your investment is spent creating or buying content. The other half is spent acquiring distribution – which is not always easy in a crowded and competitive market. Even the dream team behind OWN – Oprah Winfrey and Discovery Communications – struggled for several years. OTT ushers in new technology and with it, a reduced cost of ownership. With an OTT channel, the content cost may be the same, but the distribution cost, compared to traditional cable, is exponentially less.
There are no distribution limitations with OTT.
No one controls your distribution with OTT. You can broadcast direct to anyone with a good internet connection. For years, even if you had money for distribution, the cable systems were always the bottleneck keeping you from getting the viewers you needed to build a successful network. With OTT, you can spend a fraction of the money you would for cable distribution and quickly build awareness of your channel, using targeted digital advertising
OTT is what the consumers want.
OTT allows your target audience to provide immediate feedback, which allows you to refine your content creation strategy as you go. This ensures you’re always meeting the needs of your viewers. You can set up your channel with live, interactive programs that help you create a strong bond with your audience. And it’s as mobile as they are. Consumers can watch your OTT content wherever they are – at home, on vacation, at work or on the road.
Advertisers love Over-the-Top.
If your goal is driving the eyeballs, OTT is the right channel for you. Advertisers love OTT because its quantifiable and can support a strong call to action.
OTT allows for instant international distribution.
The flexibility of OTT knows no geographical boundaries. So if your goal is to build a global channel, OTT allows you to be international from day 1.
OTT content seems to be multiplying daily. And we’re no longer talking exlusively about sports and entertainment content. Other industries are starting to take advantage of OTT to build consumer trust, loyalty and drive revenue. The only mistake companies can make, at this point, is not taking action now.