According to researchers, the global VOD market was estimated to be $70,6 billion in 2021. They forecast its growth at a CAGR of 16,2%, reaching $170,9 billion by the end of 2027.
The market development is driven by the increasing internet penetration, the spread of smartphones and Smart TVs, the rising trend of cord-cutting, and innovations in technology for video streaming. The demand for online video content is also growing, meaning that companies and organizations are getting involved in the industry.
Launching or running a VOD streaming business means that you can encounter problems anytime at any level of your business development. The list can be long and refer to various sides of your video on demand solution. Let’s observe some and what you can do about them.
Potential Problems a VOD Streaming Business Might Encounter and How to Solve Them
#1 Reaching more viewers
Suppose your video streaming service has a particular amount of viewers, and their number isn’t increasing or decreasing greatly. These people bring you predictive revenue, but you want more.
There are some things you can do using advanced software for video streaming. For example, a professional IPTV/OTT solution usually has applications for multiple devices and a CDN video streaming.
Applications for multiple devices will allow viewers to watch videos on mobile phones, TVs, tablets, and computers. It means that people will have more chances to access your service. Moreover, you will be able to cover more viewers since some prefer watching content on a Smart TV, and others think that a smartphone is enough.
A CDN (content delivery network) delivers video content anywhere. It means it can help you reach more people in new locations. They will be able to watch your content without interruptions, receiving a smooth viewing experience.
#2 High-quality viewing experience
As a content provider, you probably want your customers to stay longer on your service and turn to regular users. One of the ways to achieve this goal is to ensure the right encoding and delivery mechanisms. For this, you might develop your own professional solution for video streaming or obtain a ready-made one from developers.
An encoder with a rich feature set will prepare your content for delivery through the Internet. A transcoder will help meet the technical requirements of a receiving device, adjusting the size and bitrate to network conditions.
#3 Content piracy
Delivering content via the Internet can come at the cost of piracy. While some people won’t mind paying for access to your library of videos, others don’t want to spend money on content consumption. Malicious actors steal videos to spread them for free through torrent sites and exchange services. As a result, you lose viewers and revenue.
To avoid these situations, you should take security measures beforehand. For example, obtain a solution for video streaming with DRM functionality.
DRM is an acronym for digital rights management. It is the technology that takes away control over content from you to ensure that nobody gets unauthorized access to it.
#4 Content monetization
There are four monetization models in the video streaming landscape:
- Subscriptions – people purchase access once a month or year.
- Advertising – viewers don’t pay for content consumption but watch commercials instead. You generate revenue by running ads on your videos.
- Pay-per-view – users pay for each video on the platform to watch it.
- Hybrid – you combine several models described above.
The question is: which model is more suitable for your VOD platform? It depends on your business goals, customer budget opportunities, behavior, and preferences.
For example, since it is impossible to purchase all subscriptions, many viewers got interested in ad-based services.
Drawing the Line
You will likely face problems when running a video streaming service. But it is essential that you know how to solve them and have several options at your disposal. Obtaining the right software for VOD streaming can solve many problems, such as monetization, security, reaching viewers, and ensuring a high-quality viewing experience. As a result, you can focus on marketing and content creation.