Why Revenue Management is Important for OTT platforms?
It is a well-known fact that OTT platforms have grown immensely in recent years. However, only a few platforms have been able to create an identity for themselves online. We went a step further to investigate the common factor in all these platforms. The one answer that popped up in the likes of successful OTT platforms is good revenue management.
What is Revenue Management?
Revenue management is nothing but strategies employed after a thorough analysis of the market to increase the total revenue. Through this, the customers are sold the right product at the right time at the right price.
Why Revenue Management?
Like any sector of the business, even revenue management needs special attention. It is the catalyst you need for your OTT platform to grow faster. Few of the reasons why you need revenue management are -
You can have Effective Pricing
Simply put, in an effective pricing strategy, you get to decide separate prices for the same product or service at different times. Let us understand this through an example.
John is an OTT platform owner.
John streams movies and series in exchange for money.
John usually keeps the cost of the Avengers movie 10 dollars.
But, in a few weeks, a new Avengers movie is coming out.
So, John increases the price of an avenger movie to 25 dollars.
John used an effective pricing strategy to increase his revenue.
Get a Detailed Analysis of Your Customers
Customer analysis is an integral part of revenue management. It is only through this that one can decide the different pricing strategies and increase revenue. But once you do customer analysis, its usage will not be limited to just revenue management but will expand to other areas. Through customer analysis, you can also improve your customer service and better understand your product demand.
Increase in Total Revenue
When you do a micro-analysis of your customers’ needs and cater to them accordingly, your total revenue is bound to increase.
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