How To Build An OTT Platform: Everything You Need To Know

The demand for entertainment is steadily increasing year by year, yet over 80 million US households are on track to cut the cord by 2026 and say goodbye to cable for good. So, if they’re not watching TV, how are people getting their fill of content? They are turning to the Internet and using OTT platforms to discover and watch everything from movies to sports game streams.

By 2029, we expect there to be over 4.9 billion OTT users. Now, you’re probably thinking that if you had an over-the-top platform, you too can enjoy a piece of this very lucrative pie. Lucky for you, there is a way to build your own – and it doesn’t even have to be all that expensive or involve a full IT and developer team.

Many streaming platforms, like Dacast, provide you with all the tools you’ll need to create an OTT platform from scratch and on a budget. This article covers what OTT is and what it needs to succeed. Our guide will take you through the steps of how to build an OTT platform and start entertaining your audience.

What Is An OTT Platform, and Why You Need One

An OTT platform distributes content through online streaming. It bypasses providers that only provide linear broadcasting and gives viewers on-demand access to a vast library of movies, shows, and live broadcasts on demand, without the need of expensive cable or satellite TV packages.

Viewers prefer to have on-demand access to content, allowing them to watch it whenever and wherever they choose. OTT allows audiences to consume content more freely than IPTV too.

And it’s not just the entertainment industry that feels the impact of OTT content. Whether you’re an educational institution or a business, having your own platform for OTT content will prove beneficial.

In entertainment, services like Netflix, Dacast, and Vimeo constantly reshape how people consume content. Educational institutions use OTT solutions for remote learning and webinars. For businesses, OTT platforms provide new opportunities for brand engagement through video marketing and live events.

The Benefits Of An OTT Platform

It’s clear that today’s audiences want what they want, and they want it in their own time. With the help of OTT technology, you can give your viewers exactly what they want without needing a middleman. More than that, having your own OTT platform gives you the freedom and flexibility to customize your content and choose how to monetize it.

You won’t be limited by restrictive agreements or the terms of use of third parties. You have complete control over the user experience and can create OTT platforms that fully covers your business goals.

Full Control Over Your Content and Branding

You can design and customize the user interface (UI) to reflect your brand’s identity and give viewers a completely personalized experience. Unlike third-party platforms, which offer limited branding options, having your own OTT platform will allow you to tailor every aspect, from the color scheme to the layout.

You’ll also have full control over your content selection and distribution. That means you can curate, license, and release content that your audience wants to see. This flexibility means you can quickly respond and adapt to trends and audience demands, giving you a competitive edge in a crowded market.

Multiple Opportunities for Content Monetization

You’ll create a consistent and predictable revenue stream by building your own OTT platform. To increase profits, you can incorporate subscriptions and ads or offer pay-per-view for high-demand events. You can use a few different monetization models, including:

• AVOD: Generate revenue by showing ads to users who access your content for free. This model is attractive to viewers who prefer not to pay for subscriptions but don’t mind watching short ads in exchange for free content.
  
• SVOD: Generate recurring revenue by charging users a subscription fee to access your content regularly. This model offers viewers unlimited access to audio and video media and is a constant source of profit. It works well for platforms with a large content library and dedicated audiences.
  
• TVOD: Allow your audience to pay for individual content, such as movies or events, on a one-time basis. This model works well for high-demand, premium content like live sports, concerts, new releases, or exclusive events.

Unlimited Reach To A Global Audience

Traditional broadcasting relies on regional or national broadcasters and networks, limiting your potential reach. With an OTT platform, you can bring your content to a global audience and cater to viewers in different time zones and countries.

Flexibility and Scaling

As demand for your content increases, you can easily scale your platform to accommodate a larger audience. You can expand server capacity or use a cloud-based OTT solution to maintain smooth and fast streaming regardless of the viewership.

Unlike traditional TV channels, an OTT platform allows you to add new content types and integrate innovative features. There is even the option to implement advanced technologies like AI and personalized recommendations.

What Does A Solid OTT Platform Need

Before we get into how to build an OTT platform from scratch, you need to learn the core features that make an OTT platform. It doesn’t matter how you chose to create the platform; these are the things you must include:

• A Reliable CMS: A CMS will help you organize and categorize your video content. It makes it easy to manage the content and make sure it reaches the right audiences. An intuitive CMS simplifies content scheduling and improves platform navigation.
  
• Scalable Infrastructure: Your platform should grow with you if you want to accommodate a growing user base and content library. A platform with cloud hosting and CDNs can handle more users without compromising delivery speed. A scalable infrastructure guarantees the platform can grow along with viewer demand.
• Multi-device Compatibility: A successful OTT platform must support multiple devices, including mobile phones, desktops, and smart TVs. Compatibility across various screen sizes and operating systems gives users the same viewing experience regardless of their device.
  
• Monetization Tools: Look for an OTT platform with several video monetization options. This includes setting up subscription models, ad-based revenue, and transactional payments. It also needs integrated payment gateways and billing systems to secure all financial transactions.
  
• Security Practices: OTT platforms must prioritize protecting content and user data. It needs DRM, encryption, and secure streaming for greater content protection. User authentication and access controls further protect private data and guard against unauthorized access.

How To Build An OTT Platform From Scratch

Now that you know what to include in your OTT platform, let’s see how to build an OTT platform from scratch. The process requires meticulous planning and knowing exactly which audience base you want to engage. Let’s go over everything step by step. 

Step 1: Define Your Niche and Content Style

Before you start, you must know the type of content you want to produce and deliver. Will you provide access to original movies and TV shows, live-stream games, or do sports commentary? Is your niche more educational or business-oriented?

The next step in your OTT strategy is identifying your target demographic: who are you creating this platform for? Are they sports enthusiasts, movie buffs, or students? The preferences, behaviors, and viewing habits of your base audience will help you create content they are excited to see.

Step 2: Pick a Technology Stack

To build your platform, you’ll need to make decisions between front-end and back-end development. Front-end development handles the design and user interface that customers interact with. Back-end development, on the other hand, covers server management, data storage, and content delivery.

You’ll need a reliable video hosting solution like Dacast that supports adaptive streaming and fast delivery. Video protection tools will help secure your library, while encryption protocols keep user data safe.

Step 3: Choose The Monetization Model

We already went over each monetization model you can incorporate into your OTT platform. You can go with just the one or offer all three and let each subscriber choose the best one for them.

You can also combine these models, integrating advertising solutions or pay-per-view options based on the type of content you usually provide. For easy and secure transactions, integrate payment gateways and billing systems that support one-time payments and recurring subscriptions.

Step 4: Have Cross-Platform Compatibility

To make your OTT platform more accessible, try to make it compatible with several streaming platforms and viewing devices. Most users access content via their phones, so developing an app for iOS and Android is always a worthwhile investment.

Don’t forget about devices like smart TVs, game consoles, and set-top boxes, as many users prefer to access OTT content on bigger screens. Cross-platform compatibility will increase accessibility and allow users to switch between devices without losing functionality.

Step 5: Do a Test Run

Before the platform’s official launch, do a test run to see if everything works as it should. See how the platform performs under not-so-ideal conditions to identify issues like slow streaming speeds or playback glitches. The soft launch is the time you can get valuable user feedback on:

• The platform’s usability
• Content quality
• Overall experience

Step 6: Launch And Promote The Platform

Once you fully develop and test your OTT platform, it’s time to launch it. Plan a marketing strategy to create buzz and attract users to your platform. Some effective ways to increase awareness and build an initial user base include:

• Social media campaigns
• Influencer partnerships
• Targeted advertising

Offering special promotions and platform-exclusive content will encourage users to sign up. But the promotion doesn’t end after the launch. Keep creating new content to keep audiences interested and engaged.

How To Develop Your OTT Platform With Dacast

If you’re not up to dealing with developers and all of that front-end and back-end business, there is a much simpler way to create and launch your very own OTT platform. Dacast is one of the best OTT solution providers that help businesses and content creators build and launch professional streaming platforms.

Dacast has all the tools you’ll need to create an OTT platform, and it makes the process very simple. Here is how to build an OTT platform by using Dacast:

1. Set Up a Dacast Account: Simply sign up and choose a payment option that works for you. You’ll instantly gain access to a user-friendly dashboard where you can begin managing your streaming service. Dacast’s flexible pricing plans allow you to scale your platform as you grow.
   
2. Upload Your Content: Dacast supports various video formats and offers an intuitive CMS for organizing and categorizing your videos. You can easily and quickly upload large quantities of content and fill the media library.
   
3. Customize the Platform: You can fully customize the look and feel of your platform thanks to Dacast’s white-labeling features. Add a custom logo or personalize the theme by going into “Settings,” accessing the “Theming” tab, and adding a new theme.
   
4. Enable Monetization: Dacast makes monetization easy with its multiple revenue models. To enable it, just go into the “Dashboard” and click on the “Paywall” option. From there, pick the monetization model you want your videos to have.
   
5. Enable Security and Content Protection: Dacast supports DRM, encryption, and geo-blocking to keep the content inaccessible to unauthorized users. You can also enable user authentication and the access control features by going into “Settings” and clicking “Security.”
   
6. Start Live Streaming: You can easily broadcast live events, such as webinars, sports, entertainment shows, and church services. The setup is simple: just access the Dashboard, click on “Livestream,” then “Create.”
   
7. Look At Analytics: Once your platform is up and running, Dacast provides in-depth analytics to track performance, user engagement, and content performance. The data allows you to monitor revenue, streaming quality, and viewer retention. To access all this information, just go to the “Analytics” section in the Dashboard.

The Cost Of Building An OTT Platform

So, we covered the process of building an OTT platform. Now it’s time to discuss the costs. How much does it cost to build an OTT platform exactly? Well, that depends on how you go about it. You can go the expensive route and hire developers to build a bespoke platform that will need constant maintenance and upkeep.

Or you can make it easier on yourself and use Dacast to get a product that’s just as good for a fraction of the price. Let’s make a little comparison between the two.

FAQ

1. Can I make money from my OTT platform?

Your OTT platform can be a very lucrative revenue source. You can incorporate a few different monetization methods, from a monthly subscription to pay-per-view for special events. Then, there are ads that can play before or during the video.

2. Can I build an OTT platform without coding skills?

You can build an OTT platform without coding skills by using services like Dacast. It provides easy-to-use tools, customizable templates, and ready-made infrastructure. You can create and manage your own OTT platform without technical skills.

3. What minimal security features does an OTT platform need?

To protect sensitive user data and monetary transactions, the bare minimum of security features your OTT platform will need are:

• DRM
• Encryption
• Secure video streaming protocols 
• User authentication
• Access control
• Secure payment gateways

How can I stream live events on my OTT platform?

Just use the live-streaming feature provided by Dacast. This includes setting up a streaming server, encoding the video, and using adaptive bitrate technology. Dacast handles most of the technical setup, making live streaming easier.

Conclusion

The future of entertainment is firmly in the hands of audiences, and they are showing a clear favoritism to content they can enjoy via OTT platforms. With the right service, you can build your own OTT platform for a minimal cost and still get maximum results.

Dacast offers you an easy and simple solution to building your own OTT platform, complete with security features and different monetization options. Even better, after its acquisition of vzaar, you can stream to China, tapping into a whole new market.

If you are still deciding between OTT platforms and want to try Dacast, we recommend signing up for our 14-day free trial. That way, you can test out all of our features before committing.

GET STARTED FOR FREE

Lastly, did you find this article helpful, or do you have other comments or feedback? Let us know what you think via the chatbot below. We love to hear from our readers! For exclusive offers and regular live streaming tips, you can also join our LinkedIn group. Thanks for reading and, as always, good luck with your broadcasts!