The Future of Niche OTT Services

Most of the recent coverage in the OTT space has been about the major platforms/players, yet 20% of all viewing takes place on “other” services. That includes over 200 niche OTT networks. The advantage for these networks is that their narrow focus allows them target passionate users, and to understand, engage, and connect with them on a deeper and more personal level. Whether you are an auto enthusiast, a fan of British dramas, a hard-core gamer, or Anime lover, there is a niche OTT service designed for you.

TDG expects continued expansion of vertical networks as OTT viewing continues to grow, and legacy Cord Cutters and skinny-bundle subscribers look to cobble together streaming services to fill the void for specialty content about which they are passionate. Even at nearly 80% OTT penetration, there is still ample headroom for additional growth in OTT, both in the TV and mobile markets. In fact, industry insiders expect the flood of new services entering the market to continue over the short term. However, in the long-term, , TDG foresees aggregation, if not consolidation, as there is a limit to the number of individual services to which consumers are willing to subscribe to and use at any given time.

This report examines what the future holds for highly targeted vertical or niche OTT networks that have seen a rapid proliferation over the last several years.  The report also identifies the basic building blocks of a successful niche OTT service, including:

  • choosing the right business model,
  • building an audience,
  • increasing engagement,
  • reducing churn, and
  • optimizing distribution.

The report also highlights several of today’s top standalone vertical OTT networks, and discusses the efficacy of their chosen model. Unlike any current publication, this is a must-read for content owners/providers looking to launch an OTT channel and effectively monetize their content.

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