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Charlotte Jane
Charlotte Jane

Posted on • Updated on

How to Start an OTT Entertainment Business

When you think of the word OTT only few OTT entertainment businesses come to mind. OTT industry is not only for big companies. Even individual video creators can build their own OTT entertainment Business. Whether it may be your unique content or borrow rights from the content owner to distribute on your OTT platform. Content should be unique and engaging so that users might come again and again to use your entertainment platform. Small OTT platform owners can also generate sufficient revenue with unique selling points to attract more users to the OTT platform.

Why would you want to develop an OTT entertainment platform?

When it comes to entertainment streaming services, you're likely to think of at least one of the "Big 3" (Netflix, Amazon, and Disney, which encompasses both Hulu and Disney+). While more significant providers, such as CBS All Access, HBO MAX, and Peacock, are entering the "streaming wars," consumers are also interested in more minor players.

That's when you enter the picture. Here are two reasons why now is a perfect moment to enter the streaming market.

The over-the-top (OTT) sector is poised for expansion:

OTT streaming has exploded as more people spend more time at home to keep their communities safe. Many families are cutting the cord to save money, leading to even more cord-cutting.
In 2020, global online TV and movie revenues increased to $83 billion, up from $50 billion in 2017.
To succeed, you don't have to be Netflix, Amazon, or Disney:
Outside of the Big 3, there's plenty of demand for "over-the-top" media. In the third quarter of 2019, 24% of American households supplemented their subscription to one of the significant streamers with another service. That implies there's still a lot of OTT money to be had if you have the appropriate content.

Choosing a flamboyant business model:

One of the first queries creators have when entering the entertainment streaming game (apart from "How do I create an OTT business?") is "How do I choose a video monetization model?"
When it comes to parsing your video monetization possibilities, you have a few options. Let's get started.

1. Subscription business model:

For most OTT entertainment businesses, a subscription video on demand (or SVOD) model makes the most sense as a baseline monetization strategy. A customer pays a monthly or annual membership price for access to your content if they use SVOD.
This format is perhaps the most familiar to your potential clients, as it's the one that gave birth to Netflix, Hulu, Disney+, and other streaming services. This strategy is ideal if you already have a significant collection of content secured, loaded, and ready to stream.

2. Transactional business model

Transactional video on demand, or TVOD, is a better option if you don't have a large content library upfront. TVOD allows your consumers to buy video material a la carte. Usually one at a time — think of it as a digital version of video renting.
However, in most cases, TVOD enhances an existing SVOD strategy. This allows artists to restrict access to select high-value content while allowing audiences to view a larger pool of existing videos.

3. Pay-per-view in real-time

A live pay-per-view business model is another alternative for monetizing your video content. You'd charge a one-time fee for an exclusive live event like a virtual screening premiere or a Q&A with the actors or filmmakers in this situation.
These live PPV events, constructed on top of an existing SVOD model, are a primary reason for their success (including monthly and annual subscriptions). It's an excellent illustration of how numerous monetization tactics may be used to develop an OTT business plan.

How can you tell if starting an OTT channel is the appropriate move for you?

Independent producers and small businesses can now establish their Netflix-style service thanks to OTT streaming services. While anyone may create an OTT channel on Flicknexs, you'll want to make sure you meet at least one of these four criteria.

1. You already have a content library in place:

A common assumption that creators hear while trying to figure out how to start an OTT business is that they need thousands of titles to get started. That isn't the case.
We've found that starting with at least 60 videos works well for most genres - it's a sweet spot for many genres to deliver enough content at launch for customers to feel like they've seen enough videos to justify their financial investment in your channel.
This benchmark, however, should only be used as a starting point. It's also vital that you have a steady stream of new information flowing down the pipeline.

2. You already have a following on other platforms:

Many creators mature into an OTT business concept at Flicknexs. You can focus on turning your followers into paying clients if you already have a following on YouTube or other social media platforms.

3. You've built a niche following and created unique content:

One great piece of exclusive content can sometimes be enough to drive subscriptions to entertainment OTT networks. To build on our previous point, you'll want to make sure you have a regular stream of new content to keep your audience interested.

4. You're putting together a long-term, consistent content release schedule:

We can't emphasize how important it is to have a consistent flow of new content. You'll need a regular stream of new, err, clips if your OTT business plan is going to work! It doesn't have to be a flurry of new releases every week: if you know you'll have one in-demand, high-quality event or title per month, that'll suffice.


Always have one thing in mind OTT entertainment business is not only for big players. Many Small OTT businesses are performing well in this entertainment market. Many OTT Businesses don't compete with the big players but fill gaps left by them. The OTT market is vast as small OTT entertainment businesses can generate sufficient income.

Discussion (6)

praveene27295 profile image
Praveen • Edited on

The essential components of How to Launch an OTT Entertainment Content Business are well described
pls refer this blog to know about subscrption churn :

jasonstaurt4321 profile image

Nicely mentioned and for any entertainment business the video streaming platform video quality and what are the type of content they have does plays a major part in success of the video streaming platform

aryanraj profile image

Fantastic website! It also assists me in understanding How to Launch an OTT Entertainment Content Business. however, I would like you to recommend the webnexs platform, which I recommend you take a look at.

tweet2haribabu profile image
HariBabu G

The capabilities of How to Launch an OTT Entertainment Content Business are well-explained, and the material presented is great. I also request that you take a look at certain important platforms such as Webnexs.

aryanraj profile image

Things to Think About When Starting an OTT Entertainment Content Business is a great blog to read.

hermoniversa profile image
hermoni versa

Great work to describe the major components of How to Launch an OTT Entertainment Content Business