iWorld
GUEST ARTICLE: Why content creators need to embrace OTT platforms for better growth and impact
Mumbai: OTT (over-the-top) services have received a lot of attention in the last three years, completely transforming the way we consume information online. OTT platforms are significantly altering the landscape of the entertainment and media industries. OTT services are classified into several groups based on the type of content, helping both innovative content creators and brands gain better visibility and engagement among a wider set of global audiences. With access to internet video material, artists and content creators also have an opportunity to build a brand out of their work, which will lead to organic development and popularity among viewers.
With the versatility of gadgets, modern consumers are more accustomed to consuming video material at any time and from any location. According to a PWC analysis, India’s OTT video industry would grow at a 21.8 per cent CAGR from Rs 4,464 crore in 2018 to Rs 1,1976 crore in 2023.
From large companies to start-ups, everyone is welcoming OTT platforms for innovative and data-driven campaigns. This also provides content creators with an opportunity to drive better brand partnerships, find sponsors, and build a stronger viewer base for themselves, as well as enjoy a wider reach to viewers via dedicated OTT platforms.
In line with the above, having a dedicated OTT platform and building a niche ecosystem can have several benefits for content creators, like:
1. Better engagement
OTT platforms have enormous potential for expansion. The enormous market makes it all feasible, but before proceeding, one needs to understand the approach to engaging the audience. OTT enables content makers to create content that increases engagement. It provides a diverse range of materials to choose from based on the consumer’s preferences. Consumers, on the other hand, have increased viewing independence in terms of location, device, time, and quality of options.
Additionally, OTT platforms also help the audience to locate new material quickly and effortlessly, which will undoubtedly lead to success for content providers.
2. Increases brand awareness
OTT platforms are excellent at preserving an image that will improve your audience’s reach. On a regular basis, almost 70 per cent of users watch at least three hours of video streaming services. According to a different survey, video accounts for 82 per cent of all consumer web traffic. So it’s evident that digital and video are here to stay. Any brand, person, or organisation that can successfully combine these two. Owning an OTT platform will aid in improving brand exposure, increasing reach, and gaining more consumer loyalty.
3. Focus on your target audience
OTT platforms clearly identify their target audience, followed by enticing and relevant advertising based on their target group’s interests, which increases the ads’ views and reach. The OTT network’s 5G network is based on fixed wireless access video transmission. 5G will encourage high-quality consumption in households, thus enlarging the advertising area. Focus on a certain target first, then expand your reach after you have a clear understanding of the OTT audience.
4. Monetization model
Content producers now have the resources and flexibility to pursue their passions. They might monetize their material in a single or several ways. These include ad-supported video-on-demand (AVoD), subscription video-on-demand (SVoD), and a hybrid approach, i.e., ad-supported video with a subscription mode. The service provider or creator should select the most appropriate model for the platform. It all depends on your target audience.
Every content producer has a strong desire to increase the exposure of his or her own brand in the entertainment industry. And with a strategically planned platform, it is possible for large and small content creators to generate revenue and make an impact in the market through a well-planned and managed platform.
The author of this article is Ssoftoons COO Hansa Mondal.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
