OTT
OTT
Jul 19, 2024
Jul 19, 2024
Launching Your Own OTT? Things You Need to Know
Summary
OTT is gradually taking over traditional media, with significant growth in the MENA (Middle East and North Africa) region due to high internet penetration and usage. This blog discusses the essential steps to take before launching your own OTT service/platform.
Before detailing the requirements for launching an OTT service in the MENA region, it's essential to understand a few key points about OTT services.
OTT stands for ‘over-the-top’ technology, which delivers and streams content via internet-connected devices, particularly video content. Recently, OTT platforms have become very popular in the MENA region and are expected to grow substantially in the coming years.
With over 516 million internet users, the region has a higher internet user per capita rate than the global average and is estimated to grow by 4.0% through 2026, according to eMarketer (Source - Asia-Pacific Ecommerce Forecast 2024). These estimates present great opportunities for broadcast and content in the MENA region. Worldwide, according to Statista, the industry will grow from $294 billion in 2023 to $397 billion by 2027—a 35% increase in just four years.
Given these numbers, investing in OTT is worthwhile. Many companies are looking to capitalize on this growth by launching their own OTT services, which is undoubtedly attractive. However, a fundamental question in OTT management arises: Buy or build?
If you want to build your own technology from scratch, thinking it may provide better control over the service, its features, and your future direction, you should consider it. Building your own technology can give you the control you seek. However, you may face high startup costs and complex technical requirements. Another disadvantage of starting an OTT service from scratch is that you may detract from focusing on the growth of the service, as you'll be bogged down by shifting budgets and resources to overcome challenges such as scaling, security, and developing efficient, user-friendly technology that meets your needs.
On the other hand, if you choose to buy the technology for OTT management, you can bypass the risks and complexities of creating your own technology and move faster to market. Purchasing an already successful technology allows you to focus on OTT management and building the business instead of investing time in technology development. Moreover, when you buy technology, you are aware of its reliability and success as an established platform.
In conclusion, building technology is worthwhile when you aim to offer an OTT service in a niche and highly customized market with full control. However, if you aim to quickly penetrate the market and benefit from established infrastructure, partnering with a technology provider can be the most strategic step.
How Complex is OTT Technology – From Delivery to Revenue Generation?
OTT technology is complex but impressive. It replicates the components of the traditional media supply chain, and each component requires dedicated development and maintenance resources.
OTT requires resources to manage and deliver video content, including content management systems (CMS), encoding and transcoding capabilities, and content delivery networks (CDN). It also needs technology for live streaming and live-to-VOD (video on demand) conversions.
For an OTT service to generate revenue, the technology used depends on the platform's monetization model. Transactional Video on Demand (TVOD) may need just payment processing and customer relationship management (CRM) tools, whereas subscription-based Video on Demand (SVOD) needs subscription management software.
OTT Platform Needs to Grow
When you launch an OTT service, you need to plan its growth well in advance. If you are unable to scale, you may face disruptive migration. To avoid this, plan everything strategically in advance, from choosing a platform that aligns with your budget and features to ensuring it is easily scalable.
Unique and Adds Value
OTT services are now extremely competitive, with numerous digital content experiences for users to choose from. Differentiating your OTT service with a unique and valuable identity can help you stand out.
Avoid replicating successful OTT platforms. Your service needs to be unique to your audience. Focus on what your brand represents and how it creates value for its community—your audience.
Don’t Build an App, Build a Community
User experience is everything for OTT platforms. The uniqueness of the experience binds the audience to an OTT service. This is a major aspect of any OTT's success or failure, determining your growth and profitability.
Think of your subscribers and viewers as members of your community rather than customers. Focus on nurturing the community by providing a service that fosters a sense of belonging.
Conclusion
The OTT service industry in the MENA region is experiencing rapid growth, largely driven by increased internet penetration. This expansion has created a plethora of choices for consumers, making the market highly competitive. For those considering entry into this dynamic sector, strategic planning is essential.
MediaGuru comprehensive OTT services and monetization modules are not just transformative; they significantly boost sales across multiple industries.
To succeed in the MENA OTT market, it's crucial to leverage key factors discussed earlier. Careful budgeting, strategic technological investments, and product differentiation are essential strategies. Creating a sense of community among users can foster loyalty and engagement, which is crucial for effective OTT management.
Summary
OTT is gradually taking over traditional media, with significant growth in the MENA (Middle East and North Africa) region due to high internet penetration and usage. This blog discusses the essential steps to take before launching your own OTT service/platform.
Before detailing the requirements for launching an OTT service in the MENA region, it's essential to understand a few key points about OTT services.
OTT stands for ‘over-the-top’ technology, which delivers and streams content via internet-connected devices, particularly video content. Recently, OTT platforms have become very popular in the MENA region and are expected to grow substantially in the coming years.
With over 516 million internet users, the region has a higher internet user per capita rate than the global average and is estimated to grow by 4.0% through 2026, according to eMarketer (Source - Asia-Pacific Ecommerce Forecast 2024). These estimates present great opportunities for broadcast and content in the MENA region. Worldwide, according to Statista, the industry will grow from $294 billion in 2023 to $397 billion by 2027—a 35% increase in just four years.
Given these numbers, investing in OTT is worthwhile. Many companies are looking to capitalize on this growth by launching their own OTT services, which is undoubtedly attractive. However, a fundamental question in OTT management arises: Buy or build?
If you want to build your own technology from scratch, thinking it may provide better control over the service, its features, and your future direction, you should consider it. Building your own technology can give you the control you seek. However, you may face high startup costs and complex technical requirements. Another disadvantage of starting an OTT service from scratch is that you may detract from focusing on the growth of the service, as you'll be bogged down by shifting budgets and resources to overcome challenges such as scaling, security, and developing efficient, user-friendly technology that meets your needs.
On the other hand, if you choose to buy the technology for OTT management, you can bypass the risks and complexities of creating your own technology and move faster to market. Purchasing an already successful technology allows you to focus on OTT management and building the business instead of investing time in technology development. Moreover, when you buy technology, you are aware of its reliability and success as an established platform.
In conclusion, building technology is worthwhile when you aim to offer an OTT service in a niche and highly customized market with full control. However, if you aim to quickly penetrate the market and benefit from established infrastructure, partnering with a technology provider can be the most strategic step.
How Complex is OTT Technology – From Delivery to Revenue Generation?
OTT technology is complex but impressive. It replicates the components of the traditional media supply chain, and each component requires dedicated development and maintenance resources.
OTT requires resources to manage and deliver video content, including content management systems (CMS), encoding and transcoding capabilities, and content delivery networks (CDN). It also needs technology for live streaming and live-to-VOD (video on demand) conversions.
For an OTT service to generate revenue, the technology used depends on the platform's monetization model. Transactional Video on Demand (TVOD) may need just payment processing and customer relationship management (CRM) tools, whereas subscription-based Video on Demand (SVOD) needs subscription management software.
OTT Platform Needs to Grow
When you launch an OTT service, you need to plan its growth well in advance. If you are unable to scale, you may face disruptive migration. To avoid this, plan everything strategically in advance, from choosing a platform that aligns with your budget and features to ensuring it is easily scalable.
Unique and Adds Value
OTT services are now extremely competitive, with numerous digital content experiences for users to choose from. Differentiating your OTT service with a unique and valuable identity can help you stand out.
Avoid replicating successful OTT platforms. Your service needs to be unique to your audience. Focus on what your brand represents and how it creates value for its community—your audience.
Don’t Build an App, Build a Community
User experience is everything for OTT platforms. The uniqueness of the experience binds the audience to an OTT service. This is a major aspect of any OTT's success or failure, determining your growth and profitability.
Think of your subscribers and viewers as members of your community rather than customers. Focus on nurturing the community by providing a service that fosters a sense of belonging.
Conclusion
The OTT service industry in the MENA region is experiencing rapid growth, largely driven by increased internet penetration. This expansion has created a plethora of choices for consumers, making the market highly competitive. For those considering entry into this dynamic sector, strategic planning is essential.
MediaGuru comprehensive OTT services and monetization modules are not just transformative; they significantly boost sales across multiple industries.
To succeed in the MENA OTT market, it's crucial to leverage key factors discussed earlier. Careful budgeting, strategic technological investments, and product differentiation are essential strategies. Creating a sense of community among users can foster loyalty and engagement, which is crucial for effective OTT management.