Unlocking revenue possibilities for sports federations through OTT platforms
In today's digital age, the sports industry is evolving rapidly, with more sports federations and event organizers turning to Over-The-Top (OTT) platforms to reach and engage their audience. OTT platforms offer numerous revenue possibilities, providing a lucrative avenue for monetizing sports content. This guide explores these revenue possibilities and outlines how to set up an OTT platform and implement various monetization strategies.
The Revenue Possibilities
OTT platforms offer sports federations and event organizers a range of revenue streams:
Subscription-Based Revenue: Subscribers pay a recurring fee to access premium content, including live games, exclusive interviews, and behind-the-scenes footage.
Advertising Revenue: Placing ads within OTT content can generate significant revenue through partnerships with brands looking to target specific audiences.
Pay-Per-View (PPV): Fans pay a one-time fee to access live events or special programming, making premium or exclusive content accessible to a wider audience.
Sponsorship Opportunities: Creating sponsored content, branded segments, and integrating sponsor logos within the platform can generate income from corporate partnerships.
Merchandising and E-commerce: Integrated e-commerce options allow fans to purchase merchandise, tickets, or exclusive fan experiences directly through the OTT platform.
Setting Up an OTT Platform
There are two main ways to set up an OTT platform, based on what you are looking for. The first is far less time consuming, requires a lot less initial investment, and outsources most of the tech and maintenance needs. The second enables you to create a tailor-made solution, but you also take on most of the responibility to make sure that the platform works seamlessly.
Ready Made Solutions
Pros: For ease of use and to enable you and your team to focus on visibility, content, and distribution, we strongly recommend working with already existing OTT providers. This solution guarantees that a full team of engineers and software developers are behind the platform continuously updating, improving, and troubleshooting the platform. A variety of monetization opportunities are often included in these services, and do not require additional development.
Cons: Depending on the size of your organisation, the payment tier, and the traffic coming to your OTT channel, you may receive more or less support from the OTT provider’s team. It can also be difficult to implement changes specific to your needs, because there needs to be enough demand from all of the OTT provider’s clients for them to allocate resources to this personalisation, fix, or upgrade.
Providers: OTT platform providers include names such as NagraVision, Vimeo OTT, Brightcove, Uscreen, Joymo, and many more…
GMG’s consulting services can assist you when looking for the right solution for you, reach out to us if you would like to learn more.
Create your own platform
Pros: If you are willing to invest the time, money, and resources to create your own bespoke OTT platform, this solution can offer you far more flexibility to produce a platform tailored to your exact needs and can leave far more options for creative development and marketing opportunities.
Cons: It requires a dedicated team to create, maintain, and update the platform, which can be a huge drain on ressources during the first few years as you begin to grow your audience and revenue. Depending on your monetization strategy, you may find yourself having to develop complex systems to introduce video and image ad placements into your content.
Steps to creating your own OTT platform
1. Define Your Objectives and Content Strategy:
Determine the type of content you'll provide (live games, highlights, interviews, etc.).
Identify your target audience and tailor your content strategy accordingly.
2. Choose the Right Skillset:
Research and select a reliable development team who can support your project from start to finish.
Some companies specialize in providing bespoke OTT solutions and can simplify the entire process for you.
3. Implement a Content Delivery Network (CDN):
Ensure seamless streaming and buffering-free experiences by employing a robust CDN like Akamai or Cloudflare.
4. Develop User-Friendly Apps and Interfaces:
Provide a seamless viewing experience across various devices (smartphones, tablets, smart TVs).
Invest in a quality user interface (UI) and user experience (UX) design.
5. Integrate Secure Payment Gateways:
Use secure payment systems like Stripe or PayPal to handle transactions.
Ensure the platform supports multiple payment methods (credit cards, digital wallets).
6. Create and Curate Content:
Produce high-quality videos with professional production values.
Curate existing content, including archival footage and exclusive features.
7. Promote and Market Your Platform:
Use social media, email marketing, and traditional advertising to drive awareness and subscriptions.
Consider offering promotional discounts or free trials to attract new users.
Monetization Strategies
Sports federations can leverage various strategies to monetize their OTT platforms effectively:
1. Subscription Models:
Monthly/Yearly Subscriptions: Offer regular access to all content for a fixed recurring fee.
Freemium Model: Provide basic content for free, with the option to upgrade to a premium tier for exclusive content.
2. Advertising:
Pre-Roll and Mid-Roll Ads: Insert ads before or during video content.
Banner Ads: Display ads within the platform's interface.
Sponsored Content: Collaborate with brands to create co-branded segments or sponsored shows.
3. Pay-Per-View (PPV):
Offer live events or special content on a per-event payment basis.
Implement PPV for one-time access to high-demand games or tournaments.
4. Sponsorships:
Develop long-term partnerships with brands for sponsored content and events.
Integrate sponsor logos and messages within the platform’s UI or during broadcasts.
5. Merchandising and E-commerce:
Utilize the platform to sell branded merchandise directly to fans.
Offer exclusive items, early ticket access, or special fan experiences to boost sales.
The technology
Conclusion
OTT platforms hold tremendous potential for sports federations and event organizers seeking to expand their reach and generate revenue. By understanding the various revenue possibilities and carefully planning the setup and monetization of an OTT platform, sports organizations can create a sustainable and profitable digital presence. As the digital landscape continues to evolve, embracing OTT technology will be crucial for staying competitive and engaging with fans worldwide.
Contact GMG if you would like specialist guidance and suggestions during the creation of your OTT platform.