Launching Your Own Streaming Service: Key Points to Consider

1. Obtaining Content: Navigating the Complexities of Licensing

Licensing content is one of the most challenging yet critical aspects of launching a streaming service. Without a solid content, even the best technology will fall flat. Obtaining rights for existing TV channels, radio stations, or VOD titles requires negotiating with content owners and distributors.

Here’s why it can get tricky:

1. Rights Availability: Just because content exists doesn’t mean you can license it. Popular TV channels and VOD titles may already be tied up in exclusive contracts with other platforms. Some licenses may be locked to specific geographic areas, preventing you from offering content in certain regions
2. Geographic Restrictions: Some content is licensed only for specific territories, and you may face additional hurdles in acquiring rights for global distribution. You might need to negotiate multiple contracts with different parties for different regions, each with its own terms and pricing structure
3. Costs and Royalties: Licensing content can be expensive, and costs often vary depending on the popularity of the content and the size of your intended audience. Be prepared for upfront fees as well as ongoing royalties. Negotiating fair terms is key, especially if you're working with a limited budget or targeting niche content
4. Compliance and Legal Requirements: You’ll need to ensure compliance with copyright laws, distribution regulations, and broadcasting standards.

Given the complexity of securing content rights, it's essential to have a clear understanding of what content your audience values most. Licensing high-demand content can make or break your streaming service, so approach this step with caution and thorough preparation.

2. Monetization: How Will Your Service Make Money?

Before you launch, you need a clear strategy for generating revenue. Here are the most common models:

1. Subscription-Based: Users pay a recurring fee (monthly, yearly, etc.) for access to the content library which can include various types of content. This is the most popular model among streaming services like Netflix and Disney+.
2. Ad-Supported: Content is free to access, but users watch ads. This model works well when targeting a larger audience that might not want to pay for content. Services like Pluto TV and YouTube use this model.
3. Transactional: Users pay for each piece of content, either for rental or purchase. This model is common for premium films or live sports events.
4. Hybrid Model: Many platforms combine subscription and ad-supported models, offering both subscription tiers and content with ads.

Choosing the right monetization model will depend on your target audience and the type of content you offer.

3. Defining Your Target Audience

A successful streaming platform must cater to a well-defined audience. Start by determining if your service will be offered within a closed network or an open network:

Closed Network: Typically tied to a specific ISP or telecom provider, these platforms are often bundled with internet or cable packages. They may have a regional focus, with a built-in user base from the provider’s customers. This model is more prevalent in traditional IPTV services.

Open Network: Open to anyone with internet access, these services can reach a national or even global audience. OTT platforms such as Netflix and Amazon Prime are examples of open networks that have no restrictions based on geographic location.

Additionally, it’s important to assess market demand before launching. Are there underserved areas or communities that would benefit from a new service? Have you identified niche content or regional preferences that larger players might overlook? Answering these questions will help you tailor your platform and marketing efforts.

4. Choosing the Right Platform: The Backbone of Your Service

The technology that powers your streaming service is crucial to its success. A flexible, reliable, and scalable platform will ensure a seamless user experience and support your long-term growth.

Here are a few key features you should look for in a streaming platform:

1. Scalability: The platform should grow with you as your user base increases, handling everything from streaming and playback quality to content management and user analytics.
2. Support for Multiple Devices: Ensure that your platform supports streaming across a wide range of devices, including smartphones, tablets, smart TVs, and desktops.
3. Content Security: Protecting your content from piracy and unauthorized access is essential. Look for a platform that offers DRM (Digital Rights Management) solutions and encryption to safeguard your assets.
4. Customizability and Branding: Your streaming platform should allow you to reflect your brand identity, providing customization options for content presentation, branding elements, and even specialized features tailored to your audience's preferences.
5. Analytics and Insights: In-depth analytics can drive informed decision-making, enabling you to track user engagement, optimize content, and refine marketing strategies.

ModernTV offers a comprehensive OTT ecosystem designed to meet the needs of both B2B multi-tenant setups and direct B2C sales. Our platform provides the flexibility to launch scalable, customized streaming services that can adapt to various business models, whether through partnerships with ISPs, targeted local markets, or direct-to-consumer offerings. With 24/7 expert support and an emphasis on reliability, security, and seamless device compatibility, ModernTV ensures that your streaming service is always running smoothly.

To learn more about how our platform can enhance your business, contact our sales team at sales@moderntv.eu or request a demo.

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