Key reasons why broadcasters must integrate OTT into their distribution strategy

The OTT world offers devices that are purpose built for specific need-states, from mobile devices accessible on the run, to smart TVs larger screens and lean-back vibe.

As a country with one of the youngest populations in the world, India has adopted digital mediextremely aggressively. This growth is spurred on by millennials who have changed the way India shops, creates friendships and most of all, consumes content. Infinite choice is not merely a reality – especially for the young, it is an expectation. That extends to selection of languages, devices, genres and viewing times. India’s enormous diversity produces an ever-growing volume of content for an audience that expects to make their own viewing choices.

OTT is appealing to advertisers because of higher viewer-engagement levels on OTT platforms, and the availability of increased demographic and other information that can drive more informed viewer targeting.

First, audiences have demonstrated a clear preference for digital consumption of news and entertainment, where OTT video streaming services allow each consumer to watch whatever they want, whenever they want it. Deloitte’s 2022 Technology, Media, and Telecommunications report predicts that India’s OTT space will grow at a CAGR of more than 20% to reach US$13−15 billion over the next decade. Deloitte says that this growth will be driven by heavy investment in original content, pricing innovations, low data costs, and the rise of short-form content. More importantly, the analyst firm also says that the progression from the early to mass stage might come at a cost to the broader media industry, as subscribers, especially in tier-1 and tier-2 cities, may switch from watching traditional linear TV to more streaming. That makes OTT distribution a fertile ground to attract new viewers, and a necessity to retain your existing audience.

The OTT world offers devices that are purpose built for specific need-states, from mobile devices accessible on the run, to smart TVs larger screens and lean-back vibe. News organizations are leaning into each of these device categories to become the natural home when news breaks, and the constant improvement of connection speeds will shift even more live news viewing to OTT.

As the above Deloitte report notes, the market for providing video streaming services in India is highly fragmented, with more than 40 streaming players vying for the Indian customer’s attention and wallet. There are global streaming service providers such as Amazon, Hotstar and Netflix who are competing with local players such as Zee5 and Voot, in addition to a number of regional players (including those offering global access to content in regionally-dominant languages).

Advertising-based Video on Demand models

As streaming surges, the popularity of advertising-based video-on-demand (AVOD) is growing rapidly as an OTT streaming business model. The Deloitte report notes that AVOD in India is expected to increase from a revenue of US$1.1 billion in 2021 to US$2.4 billion by 2026. As AVOD audiences grow, many advertisers are making their ad buys “contextually” - placing their products in front of viewers whose choice of content indicates a predisposition favorable for the advertiser. Accordingly, more and more Indian broadcasters are adding OTT services, and OTT ad units, to their offerings for advertisers. OTT is appealing to advertisers because of higher viewer-engagement levels on OTT platforms, and the availability of increased demographic and other information that can drive more informed viewer targeting. Trends in other markets offer clues for Indian broadcasters: some 40% of Disney’s recent record-breaking ad “upfront” came from OTT sales, for example.

Similarly, advertisers can modulate their ad frequency to track streaming viewing behavior, like “binge watching” (viewers who watch more than two episodes of a particular show in a single viewing). These ad buys are meant to target those streaming over a long period and can be specific to the show being watched. The repetition necessary for effective advertising can now be delivered in part by taking advantage of binging behavior.

As streaming surges, the popularity of advertising-based video-on-demand (AVOD) is growing rapidly as an OTT streaming business model.

Broadcasters’ expertise lies in content creation, audience analysis, and effective marketing. Streaming services having substantial expertise working with broadcasters can greatly simplify the technical lift of a robust OTT presence. At ViewLift, we have spent years learning the workflows required within news organizations, as distinguished from those of movie studios or sports leagues. For viewers to focus on the content, everything behind the scenes needs to be optimized for internal broadcast staffers to have the easiest route from production to delivery. And broadcast business owners require real-time analytics, across the full panoply of device types. Your winning streaming partner will be one with the right domain expertise and easy-to-use feature-rich back-ends.

Use an OTT streaming platform to integrate OTT into your broadcast distribution and advertising strategy

OTT streaming solutions come with several features, like geo-fencing, multi-language support and localized payment platforms, allowing clients to take their content to a global audience. A case in point is oichoi, an OTT streaming service that offers Bengali-language content directly to viewers across the world. By partnering with Viewlift, the company customized its platform to optimize the content delivery via popular smartphone brands even in low network-bandwidth environments. Besides being integrated with local network service providers and a breadth of payment methods, the platform offers a multilingual user interface to capture and engage its audience. The result -- 65% YoY growth in SVOD revenue; 13 million subscribers in the first three years of operation; and 40% of revenue from international users.

In a world of endless viewing choices, speed to market becomes a critical factor for content owners deploying OTT services. For RugbyPass, the largest independent English-language rugby audience network, that meant launching a fully functional streaming service in just four days by partnering with ViewLift and using the company’s fully customizable ready-to-deploy app . Combining that entry speed with ViewLift’s full global payment capabilities allowed the company to acquire subscribers from 92 countries in its first season.

A combination of linear and VOD solutions also allows the audience to access aired shows at their convenience.

Cloud-based platforms such as ViewLift offer a complete end-to-end solution to content owners to distribute and monetize their content across multiple device platforms, including web, mobile, over-the-top, connected TV, smart TVs and gaming consoles.

Top OTT platforms also provide deep real-time analytics for broadcasters to gauge viewer behavior constantly. For example, broadcasters can drive a personalized experience with recommendation engines that can decrease user churn, and create best-in-class experiences.

Adding OTT services to your linear broadcasting can attract new viewers, delight existing ones, and improve your appeal to advertisers. Embrace those opportunities, and simplify the process by aligning with the right technical partner. Over-the-top will become a powerful tool for your growth.

By Rick Allen

Founder & CEO at ViewLift

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