The OTT industry has brought significant change in how we consume content. The platform now provides us with a plethora of choices to choose from. Yet, such expansion brings a new number of problems for the platform providers. This is why the OTT platform development isn’t simple and calls for creativity.
So, this guide delves into the major innovation challenges you are likely to confront while creating the ideal scalable platform. It also further discusses how to tackle those challenges without hassle.
Why Are OTT Platforms in Demand?
OTT platforms are growing popular because they give users freedom of time and choice to watch movies or series. So, now, it is predicted that the total revenue in the OTT in the US may reach US$146.30Bn by 2025. With them, the audience is free on what program to watch, when to watch it, and where to watch it without having to stick to the time-table.
The affordability of subscriptions, exclusive content, and other features have driven this kind of growth for OTT. Now, they have become an essential source of entertainment for many individuals across the world.
Building an OTT Platform Overcoming Technical Challenges
The OTT platform development is easy if you overcome some technical issues. It will provide high-quality presentations and guarantee further expansion. Below are key challenges, their impacts, and potential solutions:
1. High Churn Rates
Problem: The subscribers frequently unsubscribe because of the unsuitability in terms of the offered content. So, this inadequate supply of content can make the customers turn away.
Impact: High churn rates are costly, which may reduce long-term profitability. So, because of this, the providers face a struggle to have a stable user base.
Solution: One must provide users with the content they are interested in. Plus, they also need to provide multiple plans to increase the number of subscribers. Updating content libraries and providing loyalty programs also go a long way to keep the end users engaged.
2. Content Discovery and Personalization
Problem: Users spend hours browsing through extensive databases and may fail to find the most relevant series or films. If the content is not identified well, then it results in an unpleasant experience.
Impact: When intuitive information discovery is not available to the users, chances are they will quit using the platform. So, this brings low engagement and affects the size of growth of the platform.
Solution: Recommendations based on Artificial Intelligence as well as intelligent search options improve content access. So, during OTT platform development, add them and show users only the content that they would be interested in.
3. Smooth User Experience
Problem: Some of the major issues that OTT platforms face are slow loading times, buffering, and content organization. It affects the overall experience badly, and the unstable streaming switches off the visitors and makes them go to other sites.
Impact: A poor user experience means users are dissatisfied, and thereby it could increase churn rates. It also leads to users’ low retention rate.
Solution: Ensure that CDN is strong and increase the compatibility of the platform with streaming. Update the interface of the UI/UX and optimize the site for easy navigation frequently.
4. Content Licensing and Cost
Problem: Buying content is rather costly, and going through contracts, licenses, and using licensed content exhausts much time. This can restrain the capacity of the platform in terms of delivering quality content.
Impact: High content licensing costs may result in highly-charged budgets and minimal content diversity and exclusivity. This may influence how users perceive the platform and their continued usage.
Solution: It is better to work with an experienced company for OTT platform development and negotiate for low-cost licenses. One way to reduce reliance on external licenses is through having partnerships with the content creators.
5. Content Security and Piracy
Problem: OTT platforms are at risk with threats such as piracy, unauthorized access, and content sharing. One staple issue is the need to secure content that cannot be leaked or stolen.
Impact: People who engage in piracy cause losses pertaining to the company’s revenue and may also face legal consequences. Content creators could also be discouraged from associating with platforms that cannot protect the content.
Solution: To resolve the problem, encrypt your content by using strong protocols and introduce two-factor authentication. Strict vigilance of the unlawfully posted content and putting them down as early as possible can also be a way of preventing that.
6. Choosing the Right Plan for Monetization
Problem: Choosing an appropriate revenue model may be a very challenging task because various plans are applicable to different audiences. Some platforms might face a lot of difficulties in achieving the right balance between ads, subscriptions, and pay-per-view business models.
Impact: The wrong choice of the monetization model means not having sustainable revenues and loss in business growth. It may also potentially turn off specific parts of the audience.
Solution: So, during OTT platform development, try different approaches to find out which monetization model will work with your customers. Monitor the market and user satisfaction to identify the opportunities to fine-tune the monetization scheme.
Conclusion
Identifying significant technical issues during OTT platform development is crucial. It can help you retain an audience and attract new ones. To overcome such challenges, providers have to come up with strategic solutions such as personalization of content, creating user-friendly experiences, and successful monetization strategies. This helps create room for growth and ultimately helps you have sustainable growth.
Rawat 
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Peter