If you are running a video streaming business, you would have known about over-the-top (OTT) apps in 2022.
you’re here because you recognize the impact of this OTT app on video streaming services and the entire online video business.
This guide gives you the most important source of information about the OTT app that you can find online.
It will help you fully understand why video streaming businesses need to build an OTT app to give your business a better start going into 2022.
What is an OTT app?
An OTT app, or over-the-top application, is an app that distributes video content to your phone, tablet, or smart TV using the internet rather than the traditional distribution networks like cable or satellite.
OTT apps allow you to live stream video and watch any on-demand video content on your favorite devices. You can watch video content of any type, whether it may be movies, fitness videos, or educational videos, whatever suits your need.
Why OTT apps are popular nowadays
Over-the-top apps are popular for two reasons
- Users love watching video content on the OTT app
- They are really good for the VOD business
Since the rise of Netflix, there’s been a change of method how users watch video content – they want to watch their favorite video content anytime, anywhere, and on any device.
That makes OTT apps an essential thing for users
Let’s take a look at some of the statistics :
- 50 % of Wifi Connected homes in USA use OTT apps like Netflix, Amazon prime
- OTT market value is likely to reach $123 billion by 2023.
- 40% of wifi-connected homes use Roku or Apple TV to stream videos through their television,
Three key factors that make OTT apps so popular among users
- Accessibility: viewers have the flexibility to watch video content what they want, where they want.
- Control: Users like to pay to have full control over the video content they watch. That’s why more than 25% of US homes have subscribed to multiple OTT apps. They’re likely to pay for how they watch videos.
- Cost: Users consider they’re paying more money for cable subscriptions, while with OTT, they can save money by watching the video they want to watch, thereby improving the viewing experience.
A year ago, creating an OTT app could give video businesses an edge over competitors. But today, OTT apps have become an integral part of the video streaming business
Visitors expect to stream their favorite video content on their mobile devices and TVs
This is the right time for every video streaming business to adopt OTT apps as well; We’re in the middle of a golden opportunity mainly because of the rapid increase in demand for OTT apps. Many video creators are moving to adopt OTT apps at a reasonable cost.
Reasons why OTT apps are important for Video streaming business
It is noted that the Video streaming businesses that added OTT apps to their services have seen an increase in revenue generation by 30%
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OTT apps reduce churn
Users are more likely to consume a lot of video content if it is available on various devices.
The common reason why many users are canceling subscriptions is that they don’t have time to watch it. This means subscribers don’t have enough free time at home to open their laptops and stream video content.
So you need to make it easy for them to watch your content.
By giving your subscribers an OTT app, you’re allowing them to consume your content on their mobile devices
- while they are on the way to and from work
- while waiting for a bus or train
- during their lunch break
- Or at airports
In this way, you’re keeping your subscribers engaged with your streaming service, and it will reduce your churn rates.
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OTT apps increase conversions
OTT apps not only increase the engagement of your existing users but also help you reach a new broader audience who are actively searching for new OTT services to subscribe to after cutting off cable network connection.
This is the main reason why video streaming businesses that offer OTT apps saw an increase in conversion up to 30% higher than Video streaming businesses that don’t offer OTT apps.
In the last few years, the biggest video content providers used the OTT app to launch new video streaming services like Apple launched Apple TV+ and Disney launched Disney+.
And the next important thing is that OTT apps are not a business only for big media companies like Disney or Hulu. But Thousands of small and medium-sized media businesses and video creators are launching their own OTT platforms to deliver their video content to audiences worldwide.
This blog mentioned the importance of OTT apps, but it’s important to note down that they’re an extension of your video streaming business, and most importantly, you still need a video streaming website.
Why Video Streaming Website is also still important for Video streaming business
Many people think that OTT apps are just enough and don’t need websites, but it’s not true.
Websites are still the main core of any industry’s business, and it is more true for video streaming businesses. Statistics say around 15% of users on Netflix still watch video content using computers.
Three important reasons why video streaming websites are still important for a video streaming business:
1. 40% of users spend time watching video content on the web :
OTT app usage is clearly on the rise in recent years but still, 40% of subscribers stream video content through their web browsers.
While users are more interested use OTT apps to stream their favorite content on their smart TVs and connected devices, they still want to stream video content using laptops as well.
2. Users trust websites more than apps for payments.
Even though payments can be made using mobile, many people still feel safer making payments from their computers than from their phones.
It is noted that most video subscription payments are made on the OTT streaming website, while 60% of the time, video consumption happens on the OTT apps.
This shows that people are more likely to subscribe to your OTT if you have a secure video streaming website for the payment transaction.
3. Websites are for SEO Friendly
Businesses having a website makes your video streaming service rank higher and visible online so that people can find you on Google easily.
A video streaming website has a much higher chance of ranking in Google for the keywords you want to rank for than your mobile app does. The SEO factor is something that any business cant neglect. OTT apps are just an extension of a video streaming website and definitely not a replacement.
Wrapping up
At present, if you are running a video streaming business is essential to have an OTT app to have a competitive edge in the market, and users expect OTT apps from video streaming services. By doing this, businesses will see a bigger audience coming up and a better return on investment, and forever you will be ahead in this OTT game.
