There are industry heavyweights like Disney+ and Netflix, and then there’s Paramount+. The streaming service is an interesting standout amongst the larger players in the long-standing battle known as The Streaming Wars and offers some lessons for those of us in the OTT world. Read on to learn more about Paramount +'s freemium OTT model and what else they're doing differently.
Over the last several years, there has been a lot of activity in the space as consumers move away from cable into OTT streaming services. In an effort to compete for consumer attention, we’ve seen a consistent stream of mergers and acquisitions from larger media companies. As Nielsen's State of Play report noted, “explosion of new platforms, services, and channels has become dizzying to consumers, and there is no blueprint for companies to secure their long-term loyalty or their own business growth.”
But one standout is Paramount+. Born out of the merger of CBS and Viacom in 2019, they seem to be going the opposite way of Hollywood. Most notably, they are now offering an ad-supported free tier, something that many of the larger players have resisted. This “freemium” strategy allows them to bring in a larger audience and test a different revenue model.
Additionally, the service also offers premium TV shows and movies like Showtime content and high-profile Paramount titles (sorry, no Top Gun: Maverick—you'll need to go to an actual theater for that).
This "little engine that could" model seems to be working. Paramount's Q1 2022 numbers show that they’ve gained 6.8 million subscribers and Warren Buffet's Berkshire Hathaway just announced a $2.6B stake in the company.
As media companies explore different customer and revenue models, it’s important that their apps are built in a way that allows them to change and test quickly. Technology and consumer demands will continue to evolve—so should your app. Make sure you’re setting your business up for future growth and evolution.
Interested in building a freemium OTT app? Download our latest e-guide 2022 OTT App Building Guide: The 10 Factors You Can’t Miss