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How to sustain OTT streaming revenues
Over the last year, OTT video streaming consumption has skyrocketed as more people have stayed at
home for entertainment during the COVID-19 pandemic. And revenues are reaching new
highs.
By 2025, the global streaming industry will reach $100 billion in revenues, according to the
latest predictions from Digital TV Research, doubling in value from the $50 billion that SVOD
services generated in 2019.
One of the stars in the OTT streaming world is Disney+. Since Disney+ launched in November 2019
with 10 million signups on the first day, the company has experienced rapid growth. Disney has
announced that as of February 2021, the number of Disney+ subscribers has increased to 94.9
million.
How has OTT streaming growth impacted the pay-TV industry? In short, global pay-TV offerings are
losing money. Industry research shows that pay-TV revenues peaked in 2016 at $202 billion and are
expected to fall to $152 billion in 2025.
Is OTT streaming growth sustainable?
OTT streaming services are guzzling up profits from ad-supported content, viewer subscriptions,
and pay-per-view offerings. But is the growth track they are on sustainable?
To maintain and even increase monetization, you need to do more than just win subscribers. You
need effective strategies for retaining and increasing customers. We’ve identified a few
techniques for how OTT streaming service providers can succeed and grow.
Investing in fresh, exclusive content
Content is still king. Viewers today subscribe to OTT streaming services to gain access to a mix
of fresh and exclusive content. By investing in premium content you can enhance subscriber
satisfaction with your offering and maximise ROI.
As Netflix subscriptions have soared over the years, the streaming giant has increased its content
spending every year and is projected to spend $17 billion on content in 2021, up from $15.3
billion in 2019.
Disney+ released ‘Mulan’ in September of 2020 as an exclusive pay-to-stream option and earned an
estimated $33.5 million in revenue, validating that fresh content has value.
Exploring different pricing tiers
Another way that OTT streaming providers can keep subscribers hooked is by offering different
pricing tiers. During a recent survey, Deloitte asked OTT subscribers what would keep them from
cancelling a paid streaming service, and 28% said they would stay if they could switch to a
reduced cost, ad-supported tier of the service.
Paramount+, a new streaming service, announced at the end of February it will have two
subscription tiers, including a basic one that costs $5 a month and a higher level at $10 a month.
The premium-tier service will offer even more live sports than the basic offering, enriched news
feeds, and a mountain of entertainment content, all ad-free.
By offering different-priced OTT streaming services, you can attract more subscribers and better
monetise your service, upselling advanced features and exclusive content.
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Learn more on how to maintain subscribers at Connected Media|IP @ NAB Show 2021
Consumers are engaged with OTT streaming services, and now it is imperative for service providers to focus on retaining and growing those subscribers. At NAB Show 2021’s Connected Media|IP, you can learn more about the strategies discussed in this article, along with additional techniques that will keep your subscribers captivated and your revenue flowing.
Soon we will be revealing more details about Connected Media|IP presentation topics, panel debate themes, and more. To find out additional information:
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