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Why Do Businesses Need a Video Streaming Platform?

by The Daily Buzz Team
in Entertainment
4 min read
Why Do Businesses Need a Video Streaming Platform?

Suppose you are a business admiring Netflix’s success and thinking about having your video streaming platform.

We cannot promise that you would repeat its success. But we can show you why an OTT video streaming platform is a perfect business opportunity. There are the following reasons:

Contents

  • 1 Monetization
  • 2 People Love Videos
  • 3 Analytics
  • 4 In Conclusion
        • 4.0.0.1 The Daily Buzz Team

Monetization

Monetization is the first thing that businesses are looking for. And video streaming platforms have the potential to bring a lot of revenue due to their monetization capabilities.

OTT solutions can create VOD (Video-On-Demand) platforms. These VOD services appear to be of different kinds due to the monetization model a provider chooses. For example:

  • AVOD is a platform free of charge but shows viewers ads instead. In this case, a business “sells” its audience to other companies. These ads can show better performance as they are demonstrated to those people who might be interested in a product or service, not to all people in a row.
  • SVOD is a platform that requires a subscription fee for access to its videos. In this case, a user purchases a subscription once a month or several, or a year. But recently, the video streaming society has observed the subscription fatigue phenomenon. People are less likely to purchase a subscription. Instead, they look for ad-based or transaction-based VOD streaming services.
  • TVOD is a platform taking a fee for every video or a group of videos. It is also a “pay-per-view” model. Transaction-based platforms are good for beginners who don’t have a huge video library yet. But TVOD services have a retention problem. Users tend to watch a video and leave, while they can try a new video on SVOD platforms.
  • A hybrid is a service that combines several monetization models. For example, you can sell access to some videos with a subscription and offer some videos for an additional fee. Also, a platform can show videos with ads and remove ads if a user pays for a package without ads.

Video streaming platforms offer many opportunities for monetization. But it is OTT content you should care about as it is the first thing users chase.

Also, it is a good idea to research your target audience first. If they don’t have an opportunity to purchase every video they want, there are high chances that they will leave a platform.

So, you should understand these people, their buying capacity, and preferences.

People Love Videos

There is an opinion that videos generate more conversions than any other type of content. There are many reasons why people watch videos:

  • They are attention-drawers. We like dynamic videos that immediately attract our attention. They don’t require any effort for watching, unlike a text.
  • Videos have a higher potential to keep viewers’ attention. They are more likely to evoke feelings and build a connection with people. What is more, it is easier for us to get visual pictures because our brain processes them faster than text.
  • Video pictures are easier to remember. We also remember better those things that evoked our emotions. As it is easier to do with videos, people remember them better.

There are two things about videos that businesses can find useful. First, videos are said to bring more traffic to your website. Second, they push customers to make a purchase.

Also, it is really valuable to businesses to build strong relationships with their customers. The goal can be achieved with the help of videos.

Live streaming can be helpful as it allows direct communication with viewers. They can ask questions and receive answers in real-time.

Analytics

Analytics are valuable tools for companies to understand their audience and measure the success of content. This data is crucial for optimizing the video streaming service.

It can help reveal user behavior patterns and content performance. A business can analyze whether it is moving in the right direction.

It identifies the strong and weak spots of service and defines the further enhancements.

Also, a company can not limit its sources of information about customers to analytics tools implemented into the streaming software.

A company can communicate with the audience via social media services and ask them directly about their preferences and thoughts.  

Communicating with people directly can provide you with endless ideas on how to improve the service, attract new customers, and increase revenue.

In Conclusion

A video streaming platform is a buzzword today. Companies inspired by Netflix’s success create their own video services and start communicating with audiences on a new level.

It’s also worth noting that videos can bring more traffic to your website. They increase engagement and boost revenue which is valuable for a business.

The Daily Buzz Team

The Daily Buzz combines the pursuit of interesting and intriguing facts with the innate human desire to rank and list things. From stereotypical cat pictures to crazy facts about the universe, every thing is designed to help you kill time in the most efficient manner, all while giving you something to either laugh at or think about!

  • The Daily Buzz Team
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