Scaling Up Without Breaking the Bank: 6 Ways every Streamer can Cut Costs with New Technologies and Business Models

Creating content and simply waiting for users to consume it no longer works. Attracting and retaining users is a challenging task, especially with rigid and rising subscription plans. Taking advantage of the plethora of real-time information offered by today’s technology is crucial to developing customised strategies for each type of company based on its size and market niche while meeting the customers’ expectations regarding content offerings, quality, flexibility, and security.

In today’s rapidly evolving telecommunications landscape, OTT platforms have emerged as a game-changer for streaming companies seeking innovative ways to generate revenue and enhance customer engagement. While the initial investment in implementing an OTT platform may seem substantial, the long-term cost savings and benefits far outweigh the upfront expenses. This article explores how a telecommunications company can leverage an OTT platform to achieve significant cost savings across various operational aspects.

1. Infrastructure Synergy

One of the most substantial cost-saving benefits of integrating an OTT platform within a streaming company’s ecosystem is the shared infrastructure. Telcos already possess a robust network infrastructure that can be leveraged to deliver OTT services, thereby eliminating the need for additional investments in network infrastructure. This synergy leads to optimised resource utilisation, reduced maintenance costs, and enhanced scalability, which significantly reduces operational expenses. This benefits the company and its customers, allowing for more competitive pricing and lower subscription rates.

2. Reduced Content Delivery Costs

One of the most significant operating costs of a streaming platform is the distribution of content. OTT platforms enable streamers to deliver content directly to customers via the Internet, bypassing traditional broadcasting methods. This eliminates the need for costly infrastructure required for broadcasting and cable distribution by leveraging the existing internet infrastructure to keep the high-quality image, without pixelation, with a low level of latency, and available across multiple devices and platforms. This requires a good storage service and a stable and secure content delivery network (CDN), which is essential to distribute content globally. Notably, as companies reach customers worldwide, there is often an increase in the number of autonomous communities served, which can lead to additional costs because most CDN providers charge per region. For this reason, working with your OTT platform provider’s CDN can be a good cost-cutting measure.

3. Operational Efficiency through Automation

OTT platforms can incorporate sophisticated automation and AI-driven tools to optimise operational processes. From content recommendation algorithms to customer billing and payment processing, automation reduces the need for manual intervention, leading to streamlined operations and lower labour costs.

Providing seamless content search and tailored recommendations ensures customers stay entertained, thus maintaining loyalty. This in turn leads to an increased number of viewers and a higher retention rate. Integrating a billing system into your OTT platform goes beyond just facilitating payments. It’s a strategic move that impacts your revenue generation, user experience, and overall business success. A well-implemented billing system contributes to user satisfaction, reduces churn, and provides valuable data for refining strategies, allowing streamers to allocate human resources to more strategic and high-value tasks.

4. Customer Support Efficiency

Implementing an OTT platform allows streamers to offer a unified customer experience by integrating their core services with additional offerings such as streaming, communication, and content services. This consolidation leads to a streamlined customer support process, as customers can access all services through a single interface.

Besides, it brings substantial benefits to customer support efficiency. Seamless multi-channel communication, personalised interactions, and real-time collaboration enhance customer experiences while optimising support operations. As customer expectations evolve in the digital age, it can be a strategic decision that improves support efficiency and drives customer loyalty and business growth.

Consequently, streamers can reduce the number of redundant support systems, consolidate support staff, and optimise resource allocation, resulting in lower customer support costs.

5. Personalised Marketing and Targeted Advertising

OTT platforms generate immense data on user behavior, preferences, and consumption patterns. This data encompasses a range of metrics, including viewing history, content preferences, device usage, geographical location, and even the time of day users are most active. Such data collection provides a comprehensive understanding of user habits, enabling businesses to create highly tailored marketing strategies.

By tailoring marketing efforts to individual preferences and behaviors, telcos can improve customer engagement and conversion rates. This approach eliminates wasteful spending on broad, unfocused marketing initiatives and maximises the return on investment.

6. Hybrid Monetisation Models

The landscape of monetisation services has evolved to accommodate a diverse range of user preferences and revenue streams. AVOD, SVOD, and hybrid models offer unique advantages and challenges, catering to viewers who prioritise free access, premium experiences, or a combination of both. As the media industry continues to innovate, content creators and distributors will likely experiment with these models to find the optimal approach for sustainable growth and audience engagement.

By diversifying revenue streams, streamers can mitigate risks associated with revenue fluctuations from traditional services. This flexibility enhances financial stability and supports the sustainability of the OTT platform and its associated cost-saving benefits.

Implementing an OTT platform represents a forward-thinking strategy for telco companies seeking to achieve substantial cost savings while enhancing their service offerings. By leveraging existing infrastructure, streamlining customer support, reducing content delivery costs, embracing personalised marketing, adopting automation, and exploring innovative monetisation models, telcos can tap into the full potential of OTT platforms. While the initial investment may be significant, the long-term benefits of operational efficiency, customer engagement, and revenue diversification make the move an innovative and cost-effective choice for telco companies in the digital age.