Did you have a chance to tune in to Episode 65 of Friday Live last week? If not, you’re in luck because each week we write a full recap on every episode and point out all the top highlights. Check it out below!
As always, Friday Live (Intelivideo’s weekly live stream) brings you the latest tips and most trending news from the OTT space. Last week on Episode 65 we switched things up! Precious Gellada (Marketing Coordinator) sat in for Matt Given (CEO) while he visited clients and prospects out in California. Gellada and Ashley Podoll (Marketing Manager) talked on the highest earning Subscription Video On Demand (SVOD) apps in the U.S. and the questions that determine if a brand/business is ready to launch a SVOD offering.
Highest Earning SVOD Apps in the U.S.
For the OTT news portion of the show, Gellada covered a recently published article titled, “Top 10 US Subscription Video Apps Pulled in $1.3B Last Year” by TechCrunch.
In 2018, the following SVOD platforms raked in $1.27 billion! Here’s who made the list:
- Netflix: The streaming giant grossed the highest percentage of the total earnings and pulled in $529 million in revenue. This year, we anticipate that they will invest a majority of that towards their original content – both shows and movies. The company also increased their monthly subscription prices last month, so we’re interested to see how their customers respond to that change, and if it will keep their revenue flow up.
- YouTube: The popular OTT platform, mostly famous for streaming free videos, came in at number two and pulled in $223 million in 2018. Most of their revenue came from YouTube Premium, their ad-free and offline-use platform, which is available to subscribers for $14.99/month. The channel is also making money through Super Chat – a service that allows fans to tip live streamers. The more you tip the higher your username is pinned on the comment board of the stream. This is a great source of revenue for social influencers on YouTube.
- HBO Now: Home of the well-known show Game of Thrones, HBO Now earned over $166 million in the past year – a 12% decrease from 2017. It will be interesting to see if they stay towards the top, once Game of Thrones completes their final season this year.
Netflix, Youtube and HBO Now earned a total of $918 million in revenue! The following 7 SVOD apps that made the list (below) pulled in a revenue amount of $352 million. About 28% of the total $1.27 billion in revenue.
5. YouTube TV
7. MLB At Bat
10. Crunchy Roll
Answers to Help You Determine if You’re Ready to Offer SVOD
Our “Tips and Tricks” portion of the show was all about answering common questions we receive from clients looking to launch a SVOD offering. Podoll and Gellada asked the questions, while Given called in to provide the answers from San Diego.
When is my business ready to take on an OTT offering?
If you have a brick and mortar operation with some kind of media component, e.g., existing magazine and/or website, and you’re looking to adjust your monetization model, it may be time to move forward with a subscription video offering. Also, if video is already a core piece of your business, and you have a loyal fanbase, those are good signs that you’re ready to get started with OTT.
Should I look for new markets or offer this to my current people first?
Both! Your existing fanbase already love your stuff, and there will likely be plenty of other people out there that do as well. Maybe they just haven’t discovered you yet because you don’t have a brick and mortar operation in the area. Or they simply haven’t been exposed to your brand. You will definitely find new digital people! However, don’t focus exclusively on that new audience; be sure not to neglect your existing fans.
Learn more about the 3 categories of audiences – hot, warm and cold – and how to reach each effectively on our Target Audiences post.
What kind of team should I put together for this business?
The most important person on the team is going to be the one that’s going to drive it, and treat your SVOD endeavor as a real, money-making asset for your business – not just a side hustle. Put a person in charge that will make this the primary focus of their job, then loop in everyone else you need (marketing, finance, admin, etc.). Also, be sure to prioritize the video production. Consider outsourcing your video crew, to assure you hire the most qualified professionals for the job.
Thinking about who to partner with for video production? We have 3 top-of-the-line options for you here!
How much content should I start with?
In general, enough so that it looks like you have a substantial library to offer subscribers right off the bat. We recommend around 30 pieces and you want to be able to drip new content out over time to keep your users engaged. Also, be sure to include a variety of videos in your library to keep your users interested and engaged. Here are examples of what to include:
- Short form videos (teasers, introduction to your service, ads)
- Long form videos (workouts/lessons with a variety of time lengths — 5-60 minute videos)
- Interviews (featured on social or TV, client testimonials)
- Tutorials (tour of your app, show newcomers where to start to set them up for success)
What should I focus my budget on?
Given recommends focusing on three big budget items:
- Content – shoot an entire library of content up front
- Marketing – pay attention to paid ad strategies, creative pieces, analytics, etc.
- People – you need a team to get everything done, and have that one core person that drives the business forward
These are your key buckets that will help you succeed with your content strategy.
How important are Smart TV apps?
They’re a big deal! If you subscribe to Netflix, you probably consume videos through your tablet, streaming device, phone or smart TV. Cover all those primary streaming bases, including iOS, Android, Apple TV, Roku, Amazon Fire, etc. It’s difficult to have a successful SVOD offering without being able to provide it to users on the go.
When I’m looking at technology programs for OTT, what should I be looking for?
You want a white label platform and an offering that provides all the necessary SVOD business elements, including security for your videos, a digital store front to sell your content, in-app purchasing capability, and a dashboard to manage data, subscribers and money. You also want to make sure you’re using a program that’s aesthetically pleasing and provides a positive user experience for your users. It’s important that the sophistication of your technology is parallel to the price you’re charging.
Who should I partner with for this business?
We suggest…. (drumroll) … Intelivideo! Our platform takes on all the different elements and best practices of this business. Browse through our website for more information and check us out on social @Intelivideo. Feel free to email us at firstname.lastname@example.org with any questions!
Ready to take your business to the next level?
If you’re in good standing with our answers to all of these questions or want to learn more, let’s talk! We’re your business partner for SVOD and can get your service running in as little as 6-8 weeks. Anyone with the right content, team, budget and dedication can launch a successful subscription video business!