Start an IPTV/OTT Project: How To Take Advantage Of IPTV Business Opportunities
In our last blog, we wrote about the necessity of defining your vision and goals before starting an IPTV/OTT project. In this blog we are going to take a closer look into the research and why you need to learn about your competition and sales differentiators.
Importance of researching and learning about competition and sales differentiators before starting an OTT or IPTV streaming platform
Our aim is to help you get started with the planning process of your service in small and attainable steps. All the information is based on our experience with IPTV/OTT/DVB projects all over the world.
To learn what else you need to cover in your OTT/IPTV business solution planning process download our whitepaper 'How to Prepare Marketing Strategy that will Supercharge Your IPTV/OTT Service'
Research and Learn
Gathering information about your video streaming market, your potential customers, competition, content rights, IPTV/OTT technology, and other aspects is a crucial step. If you are worried about finding the right information or answers to your questions, then finding an experienced IPTV/OTT/DVB/IPTV solution provider should help you in this journey as they will be able to consult you from the very beginning and help you achieve your set vision. Once you start your research, you will soon find that the market is full of potential, and still far from saturation point.
Both IPTV and OTT markets have been on a steady growth for years now with the IPTV market currently valued at USD 40 billion, with CAGR of 7% until 2027, and with OTT market valued at USD 101.42 bln. in 2020, and it is expected to reach $223.07 bln. by 2026, registering a CAGR of 13.87%
What is your Industry?
Get into more details about your industry. Regardless of whether you are a Fixed, DVB, or Mobile operator, a telecommunications company, a content provider, a broadcaster, an OTT operator, a Virtual operator / PaaS Provider, or something else. First, you want to start off by answering the following questions:
Is IPTV/OTT going to be an additional service intended to bring added value to existing customers or are you starting from scratch?
The integration of IPTV/OTT services into existing customer offerings will likely be intended to bring added value. By providing access to a wider range of content (live IPTV channel lineup via IPTV app), innovative features such as on-demand viewing and personalized recommendations, and catch-up feature, IPTV/OTT can enhance the customer experience and drive customer loyalty. This strategy will likely involve leveraging existing customer relationships and networks but also extending the subscriber base.
Starting an IPTV/OTT service from scratch can be a good decision for a variety of reasons. Firstly, the demand for OTT content has increased significantly in recent years, as more and more people look for convenient and accessible ways to watch their favorite shows and movies. This presents a large and growing market opportunity for companies that are able to offer high-quality OTT content at competitive prices. Additionally, starting from scratch allows a company to build its OTT service to meet its customers' specific needs and preferences, rather than having to adapt an existing service. This can lead to a better customer experience and higher customer satisfaction. Furthermore, starting from scratch can also help a company to more effectively control the content they offer, and to monetize their service through a variety of revenue streams. With the right strategy, starting an IPTV/OTT service from scratch can be a smart and profitable decision for companies looking to get involved in the fast-growing OTT space.
What are the opportunities and what are the threats of starting an OTT or IPTV business?
Starting an OTT or IPTV (internet protocol television) business platform can be both a promising opportunity and a challenging threat. On the one hand, the increasing popularity of streaming services and the shift towards digital media consumption presents a huge opportunity for businesses to tap into this growing market. With the growing demand for more content and personalized viewing experiences, OTT and IPTV services offer a platform for content creators and providers to reach a wider audience. Additionally, the ability to offer flexible and customizable packages, as well as cost-effective and scalable delivery options, can lead to increased customer satisfaction and profitability.
However, there are also numerous threats to consider when starting an OTT or IPTV business. Competition from established players such as Netflix and Amazon Prime Video, as well as new entrants, can make it difficult for a new business to gain a foothold in the market. Furthermore, the costs of acquiring and producing high-quality content, as well as ensuring reliable delivery and effective customer support, can be significant. Additionally, there are also potential legal and regulatory issues that need to be addressed, such as content licensing, copyright infringement, and data protection with user consent. To be successful in this market, it is essential to have a clear strategy and to continuously adapt to the changing landscape and market conditions.
Do you have an idea about your monetization model and monetization strategy? Subscription model? Advertising? Hybrid model?
When starting an OTT or IPTV business, it's important to have a clear understanding of your monetization options. There are a few common options to consider to turn your IPTV/OTT service into a video monetization platform, including subscription-based, advertising-based, or a hybrid of both. A subscription-based IPTV business model involves creating subscription packages and charging customers a monthly or yearly fee for access to your content. This can be a good option if you have a loyal following and can offer unique, high-quality content. An advertising-based IPTV business model involves showing ads to viewers, either as pre-roll ads before content starts or as interstitial ads throughout the viewing experience. This can be a good option if you have a large audience, but it can be difficult to attract advertisers and generate enough revenue. A hybrid IPTV business model combines elements of both subscription and advertising, such as offering a free, ad-supported service and a premium, ad-free service. This can be a good option if you want to reach a wider audience and provide multiple revenue streams, but it can also be more complex to implement and manage.
Identify direct competitors in the IPTV/OTT market
Do you know who your direct competitors (companies offering the same type of IPTV/OTT service) are?
When looking at your direct competition you need to do a competitive analysis where you will list and compare important features, benefits, strengths, and weaknesses of your company and your competition.
Conduct a SWOT analysis to compare and contrast important features, benefits, strengths, and weaknesses
Doing a SWOT analysis is always a good start. You can compare with the competition the quality of service they provide compared to yours, selection of content, pricing of packages, but also their visibility, experience, expertise, stability, pre and post-sale services, reputation, sale channels, customer support, incentives they provide, loyalty programs and so on. Explore their service, their business strategies, the way they do sales, and how they speak to customers - try to define what they are doing good and what they are doing badly.
Who are my closest competitors?
If you have competitors with similar services, write them down and describe how their products are similar to yours.
Ask yourself, is there something I like about them, and how do they make me feel? Write down some specific elements that you like about their IPTV/OTT service. It could be some specific functionalities, copy on the product, visual elements, or anything else that you find interesting.
After that, list all the things you think your competition does extremely well. Also, write down things you believe they might be doing better than you.
Of course, along with the pros come the cons as well. List all the things you think your competition struggles with, as well as some of the challenges they might be facing with their product/service.
What do my current competitors’ ideas/products have, that I wish mine had? Describe all aspects you wish you could implement into your product/service from specific technical functionalities to business strategies, ways they communicate, and anything in between that you might want to have in your product.
Sales Differentiators or Why should people do business with me rather than my competitors?
What makes your IPTV/OTT service stand out? What makes it unique? If you could have 5 minutes to perfectly explain your service, what would you say?
Outline the key differentiators that set your services apart. The following is just an example of that list. Define at least 3 aspects of your business that are most important for the success of your project.
Content is key if you want to stand out from the competition. It is essential to have a wide variety of content for your customers to choose from. You should also consider offering exclusive content that is not available elsewhere. This can be used as a way to differentiate your OTT or internet protocol tv services from your competitors. Additionally, a great user experience (UX) solution is essential to make sure that your customers have a great experience while using your service. This can include a well-designed interface, easy navigation, and useful features.
Premium UX solution
Premium UX is a key differentiator when it comes to IPTV/OTT services. It is essential to provide customers with a great user experience that is enjoyable and easy to navigate. This can include middleware solution with elements such as intuitive menus, a modern design, and useful features. Additionally, it is important to ensure that the interface is designed to be compatible with all devices, such as TVs, computers, tablets, and smartphones. By providing customers with a great user experience, you can ensure that they will come back and recommend your service to others.
Affordable to subscribers
Affordability is another important factor when it comes to attracting customers. Subscribers want value for their money and they are unlikely to sign up for a service that is too expensive. Therefore, make sure to offer competitive prices that offer the best value for money.
Customer service is also essential to the success of your IPTV/OTT service. Customers want to feel valued and they want to be able to communicate with you in case they have any problems or issues. Therefore, it is important to have a great customer service team available via chat, telephone, or web site, that can provide help and assistance when needed.
having a unique service or offering a special feature that no other competitor offers can be a great way to stand out from the competition. This can be anything from a special offer or loyalty program to a market niche that you are targeting. Having something unique to offer your customers can be a great way to attract them to your service and make them choose you over the competition.
Sales differentiators are essential to ensure that your IPTV/OTT service stands out from the competition. By researching the competition, offering great content and UX solutions, providing affordable prices, and having great customer service, you can create a service that customers will love and prefer to your competitors. Additionally, offering something unique such as a special offer or feature can be a great way to attract customers to your service.
Advertising and marketing are also essential elements to consider. Advertising your IPTV/OTT service to the right audience is key to creating a successful business. You should consider different format and types of marketing such as SEO, PPC, content marketing, influencer marketing, and social media marketing. These can be used to target the right audience and increase brand awareness. Additionally, you should consider offering special promotions and discounts to attract new customers. .
We are aware that doing the research on the competition and sales differentiators may seem like an obvious thing to do but you’d be surprised how often even big companies get into projects without proper preparation. Through research, you will learn even more about the market, the opportunities, and the threats that await you but also about the service you wish to start thus enabling you to make the right decisions and choose the best technology vendor.