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Striking the Balance: User Satisfaction and Costs in OTT Platforms


David MacPhie

Sales Director

September 5, 2023




The ever-evolving realm of online streaming presents a unique conundrum for OTT platform operators. On one hand, there's the pressing need to provide an impeccable user experience, and on the other, the challenge to manage costs effectively. It's like walking a tightrope, but with the right strategy, balance is achievable.

The Hidden Consequences of Skimping on UX

Imagine launching your dream OTT platform, and to keep costs low, some compromises on user experience are made. It might seem like a practical choice in the short term. But soon, you notice the ripple effects: rising customer complaints, dwindling subscriptions, and increasing marketing expenses to offset the churn. This scenario illustrates the silent aftermath of compromising on UX:

- Higher Churn Rates: Unsatisfied users are quick to switch, incurring greater acquisition costs.

- Reduced Organic Referrals: Happy users are silent promoters. Without them, more budget is diverted to marketing.

- Increased Customer Support Costs: A platform that's not user-friendly generates more support tickets and complaints.

The Investment in UX: A Long-Term Strategy

On the flip side, consider platforms that prioritize UX from day one. They understand that user satisfaction is an investment, not an expenditure. And here's why:

- Platform-Agnostic Development: Users crave a seamless experience. Providing consistency across devices builds trust and encourages loyalty.

- Personalization: It's more than a feature; it's a statement that you value your users, leading to increased engagement and reduced churn.

- On-Demand Content & Live Playback: Offering variety and real-time streaming ensures users always find value, elevating their overall satisfaction.

But investing in UX doesn't mean blindly pouring money into every conceivable feature. It's about strategic choices.

Cost-Effective Measures to Boost UX

Even while enhancing user satisfaction, there are ways to manage and optimize costs:

- Embrace SaaS: Cloud-based platforms provide scalability and quality without the huge infrastructural costs.

- Prioritize Features: Based on user feedback and analytics, focus on what truly matters to your audience.

- Feedback Loop: Constantly engage with your users. Their feedback is invaluable for refining the platform and preventing potential costly pitfalls.

Higher customer satisfaction sets off a positive feedback loop that has far-reaching effects on an OTT platform's performance. When users are satisfied, they are more likely to remain engaged, recommend the platform to others, and even become brand advocates. This increased loyalty reduces churn rates, which, in turn, lowers the need for aggressive marketing campaigns and customer acquisition efforts. Ultimately, a satisfied user base directly contributes to a reduction in the Total Cost of Ownership (TCO) for the OTT platform.

In Conclusion

The journey of OTT platforms is an intricate dance between user satisfaction and costs. While the temptation to cut costs upfront might be strong, the foresight to see the long-term repercussions is crucial. Prioritize user experience, make informed decisions, and watch as your platform not only delights users but also stands strong financially.

Discover Accedo One: Ready to streamline your OTT costs and strategize your monetization effectively? Accedo One is your trusted partner. With our SaaS solution, slash unnecessary expenses and gain invaluable insights to choose the most effective OTT monetization strategy. Dive deep with Accedo One and elevate your streaming revenue streams. 

Meet us at IBC 2023 in Amsterdam this September 15-18th. Let’s discuss how we can help you elevate your OTT revenue streams with Accedo One. Book a meeting here. 


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Striking the Balance: User Satisfaction and Costs in OTT Platforms