In the second edition of the Business of OTT, Chris Linden and Ed Lee discuss the OTT distribution dilemma. Is direct-to-consumer the way to go? Or do operators still hold the key to distribution success? Ed also shares some thoughts on how revenue sharing works out and what happens when OTT providers go global.

Ed explains that as the cord cutting phenomenon is no longer disputed, content players are creating experiences that work directly with consumers. It gives them the direct line to their consumers and the opportunity to offer even more of their library to audiences - more than they could via existing pay TV distribution relationships. But operator agreements remain important. Ed shares some thoughts on how this helps get their content onto many, many devices out there - and that this process must be straightforward.

Looking at the economics - revenue sharing has various guises depending if its a transactional VOD model, subscription-based (SVOD) or ad-supported model like FAST. Whether it is a revenue share or inventory based monetization approach, the OTT business offers up numerous ways for content providers to earn revenue depending on the approach they take.

When it comes to global scale, Ed believes that “being able to write an application that can then deploy widely throughout the world is the goal.” And with time to market a key consideration there are options for OTT providers to port direct to hardware or opt for a cloud based approach which could prove ,much faster and seamless.

To check out more from the Business of OTT series, visit the Resources section of our website or take a look at the complete interview below.

 

ActiveVideo_The_Business_of_OTT Part_2

 

Topics: OTT