Customized OTT Vs Readymade OTT Solution

Last Updated on August 28, 2022 by Ram Thakur

Are you wondering how to start an OTT platform for video streaming? The global OTT market will grow with an impressive CAGR (Compound Annual Growth Rate) of 21% by 2028. It is the right time to step into the OTT industry and launch your platform. Read on to know more about launching your OTT platform.

OTT (Over the Top) platforms cater to the video streaming needs of viewers. It provides media services to users directly via an OTT device and the internet. There is no need for traditional TV cable for accessing OTT content. OTT platforms can provide pre-recorded as well as live videos to users via the internet.

OTT content can be accessed via various devices like smartphones, smart TVs, tablets, etc. Users have more flexibility watching their favorite show on an OTT platform than on a traditional TV set.

Are you searching the internet for “how to create an OTT platform?”

Well, there are two methods for launching your OTT platform:

You should know about both methods before launching your OTT platform. Let us review these methods to create OTT platforms and their pros/cons.

1. Custom OTT Platform Development

One can build an OTT platform from scratch and can customize it according to their preferences. Many platform providers offer tools to launch your white-label OTT platform from scratch. You can select the specifications of your OTT platform along with branding it. The advantages and disadvantages of building your OTT platform from scratch are as follows:

Advantages of Custom OTT Platform Development:

  • Customized Specifications: There would be no fixed specifications if you are going for custom OTT platform development. You can choose any tech stack, monetization model, and content niche while creating an OTT platform. Moreover, you can create a personalized OTT platform with specifications according to user preferences. Custom OTT platform development is a tailor-made solution for your business/brand.
  • Complete Control: Building an OTT video platform from scratch via a white-label solution will give you complete control of the OTT platform. You do not need to pay monthly/yearly charges to anyone for using their OTT platform. You can gain lifetime ownership of your OTT platform if it is custom-made.
  • Payment Integration: Custom-made OTT platform can let you accept payments on a global scale. You can integrate various payment methods in your OTT platforms and can reach a wider audience. With custom OTT platform development, you can decide the payment terms for your audience and content creators. You can also choose the business model for your OTT platform and, users will pay accordingly.
  • Enhanced Engagement: You can enhance communication with the users by building your own OTT video platform. You can mail or contact your viewers directly as you will have full access to user credentials. You can connect with your audience by advertising in different ways. A ready-made OTT solution will never let you decide on the communication standards and advertisement models.
  • Complete Ownership: You can choose a white-label OTT development platform for starting your OTT business. Once the OTT application is developed, you will be the sole owner of your business. You do not need to pay any charge to the development company for every profit you make. Custom OTT platform development will provide lifetime ownership by just paying once during the time of development.
  • Product Roadmap: While custom OTT app development, you get to decide your product vision and strategic goals. You can mold the OTT platform according to your business strategies. You and no one else will decide the direction of your OTT platform over time. Moreover, you can anytime add new content or shred off old content on your OTT platform.
  • Invest Once: The costs for custom OTT application development may seem high initially but are beneficial in the long run. You do not have to pay any monthly/weekly rent to the development company. You will pay only once based on the features inculcated in your custom-made OTT platform.

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Disadvantages of Custom OTT Platform Development:

  • High Upfront Cost: You will have to pay more upfront costs for building your custom-made OTT platform. The price will depend on the tech stack you choose for the OTT platform. However, it will be economical in the long run as you do not have to pay every month or year to the platform provider. Custom OTT development will also provide higher ROI (Return on Investment) than a ready-made solution.
  • More Marketing Efforts: It may take more time to market your custom-made OTT platform. But then again, continuous marketing efforts are required in any business for upscaling. You will have to form a marketing strategy and build your audience from scratch. One should analyze the requirements of your business/brand before launching your OTT platform.

2. Readymade OTT Solution

An off-the-shelf streaming platform will have ready-made specifications and fixed tech stack. The specifications of am OTT SaaS platform are pre-decided by the respective platform provider. You do not have to buy a software license for using an OTT SaaS platform. OTT SaaS solutions are based on a pay-per-use model for pricing. The pros and cons of using a ready-made OTT platform are as follows:

Advantages of Readymade OTT Solution:

  • Start Small: A custom-made OTT solution involves more upfront cost and also comes with its investment risks. With a pre-made OTT solution, you can select an affordable platform and can test your business model. It is better to test your OTT business plan via a SaaS platform before custom OTT platform development. It will help in validating your OTT business plan with proper testing. 
  • Less Marketing Efforts: A ready-made OTT platform will allow you to generate revenue immediately after starting. You can monetize your videos straightway and can receive payment according to the terms of the platform provider. You can start streaming videos right after subscribing to an OTT SaaS platform.  
  • Less Upfront Cost: Do you have a great OTT-business plan but do not have enough investment? Well, a ready-made OTT platform will let you start with a less upfront cost and test your business idea. You will have to pay a monthly/weekly fee to the platform provider depending upon the tech stack of your OTT solution. It can help entrepreneurs to test their business plans before talking to investors/stakeholders.

Also Read: 7 Things to Know Before Using an eSignature

Disadvantages of Readymade OTT Solution:

  • Limited Personalization Capabilities: In most cases, there are no customization possibilities for a ready-made OTT platform. You will have to stream videos via the tech stack that the platform provider already decides. A SaaS platform provider may also restrict the quality, size and, frequency of the OTT videos to be uploaded. You will also not have any ownership of the SaaS OTT platform.
  • Security Standards: The security and data policy will always be decided by the SaaS platform provider. With custom OTT app development, you can use the latest security standards and have a strong DRM (Data Rights Management) system. Often cheap/free OTT SaaS platforms do not protect the video content from being pirated.
  • Less Control over OTT Data: You control your OTT data to the SaaS platform provider. You will also have no control over the customer data produced via the OTT software. You may be forced to take down any OTT content due to updated policy or any other issues. Also, the streaming videos are not protected and, there is a risk of piracy.

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It is better to test your OTT business plan using a ready-made SaaS platform. However, there are limited possibilities in terms of generating revenue. Once your business takes off, it is better to opt for a custom-made (SaaP) OTT platform. Create an OTT app for your business now!

EarthTechy Staff

EarthTechy Staff

EarthTechy is a trusted tech news platform that provides information, opinion, and advice on technology and helps you get the most out of it.