Streaming is strongly integrated into the lives of both viewers and businesses. People spend their free time watching videos that they find on multiple video streaming platforms launched by companies and organizations.
The video streaming industry has its own trends and development journey. Let’s observe some of the most interesting trends in the streaming world. Maybe, you will be able to include some in your OTT business plan.
Five Streaming Trends for 2023
#1 FAST (Free Ad-Supported Television)
First, viewers got tired of watching ads that were constantly interrupting a movie or a show. Then, Netflix offered direct-to-consumer streaming on an ad-free subscription basis to the market. Since then, viewers can watch any videos anywhere they want. Netflix didn’t use commercials in videos, which people appreciated.
Now, we see that free ad-supported television is back. It is a win-win for viewers and broadcasters. Users get access to free content, while streamers generate revenue through commercials.
What is the reason for advertising return? It is viewers’ demand for free content. They are tired of multiple services that require payment for a subscription.
#2 OTT Monetization Models
Let’s observe common monetization models video streaming platforms use:
- AVOD – advertising-based video-on-demand. A content provider offers multiple videos, and viewers can access them free of charge. You monetize your video content through advertising.
- SVOD – subscription-based video-on-demand. People purchase a recurring monthly or yearly fee to access the library of videos on the platform. The subscription is easy to cancel.
- TVOD – transactional-based video-on-demand or a pay-per-view model. Viewers pay for a video they want to watch, while the rest of the content is inaccessible.
These are three models that the video streaming market uses to monetize videos. Also, a hybrid revenue-generating model is getting popular now. Many platforms are implementing an additional ad-based package to their tiers. For example, Netflix added a lower-priced subscription plan with ads to increase viewer retention.
#3 Quality and Speed
Latencies during the video playback are one of the largest pitfalls on the way to ensuring a smooth viewing experience. It is a problem not only for general video streaming services but also for services adopting such things as immersive streaming, IoT devices, live sports betting, and many others.
One of the ways to reduce latencies is CDN scaling. These content delivery networks support multicasting – video transmission to millions of viewers.
#4 Niche Content
Netflix produces content of different genres, topics, and themes. Along with services like Netflix, huge popularity is gained by growing niche content services.
Their unique selling proposition is the content of one particular genre or topic. For example, there is a streaming platform only for anime, and another one broadcasts only horror videos.
Such streaming services fill the gaps left by larger companies. They are more focused on specific content – that’s where they find their viewers.
#5 IoT Video Streaming
Internet-of-Things (IoT) video streaming is already used in various fields, including surgeries or law enforcement. Experts predict that there will be around 30.9 billion connected devices by 2025.
People take advantage of IoT video streaming units like doorbells, IPs, and security cameras. With the adoption of the 5G Internet, the use of such video streaming technologies at home will likely grow in the coming years.
Final Thoughts
Technology development is growing rapidly. These innovations, joined with video streaming, can bring new forms of video streaming used for various purposes: from monitoring the home while away to an immersive experience of attending an event while actually staying home.
Also, it seems like the video streaming market is adopting advertising. It is a win-win for companies as well as viewers. Businesses monetize their content, and viewers consume them for free.
Also read: In 2023, Will MangaOwl still be a secure and legitimate platform?
