Challenges

One of the biggest issues faced by regional and niche service providers when entering the OTT market is competition. With so many established players, it can be difficult for smaller providers to differentiate, gain traction and attract viewers. Additionally, the global service providers have huge budgets and resources to invest in original content and marketing, making it difficult for smaller providers to compete.

A second challenge is the high cost of content acquisition. Acquiring rights to popular and high-quality content can be extremely expensive, which in turn becomes critical for smaller providers who do not have the necessary financial resources. This means that smaller providers may not be able to offer the same level of content as larger providers, which can make it difficult for them to attract viewers.

Third, building and maintaining a robust technical infrastructure that can support a large number of viewers can be expensive and time-consuming. The service quality bar has already been raised high by global providers and naturally users will expect to experience the same from a small or regional provider as they do when they log in to their Netflix or Amazon Prime accounts. On top of that, the implied expectation is for the service to be available on a wide range of devices and platforms, including mobile devices, smart TV’s and gaming consoles. Smaller providers may not have the same level of technical expertise and resources as larger providers, which can make it difficult for them to offer a consistent viewing experience.

Opportunities

Despite all of the above, regional and niche service providers have a number opportunities when entering the OTT market. One key aspect is the ability to offer specialized and targeted content to viewers. For example, a regional provider may be able to offer content that is specific to a certain region, language or demographic, which can be attractive to viewers who are interested in this type of content. Similarly, a niche provider may be able to offer content that is specific to a particular genre or interest, such as sports, horror movies or documentaries.

Another upside is the ability to provide a more personalized viewing experience for viewers. Regional and niche providers may have a smaller user base, but can in turn obtain a more granular understanding of their audience through better integration of user feedback. Being a global player means capturing user data at a global scale. However, if a particular region or segment is not of interest, all that data will be lost. A regional or niche service provider is bound to make the best out of its target user data, with voice commands, advanced algorithms and machine learning playing an important role in content personalization.

Finally, regional and niche providers may be able to build stronger relationships with their viewers. By offering specialized and targeted content and also focusing on community engagement, these providers can better harness the social dimension of content consumption and develop a more loyal user base.

Summary

Entering the OTT market can be challenging for regional and niche service providers. However, by offering specialized and targeted content, by providing a more personalized viewing experience, and by building stronger relationships with their viewers, new comers can still be highly successful. 

Singularity9 has in-depth experience building and operating streaming platforms at scale and can be a trusted partner throughout your OTT journey. 

Want to learn more? Let’s talk!