Content Licensing Costs Too High for OTT Services to be Profitable

Given how popular OTT services are, it isn’t immediately apparent how OTT providers are actually going to make money and become profitable. For years, it was assumed that the key to the success of any OTT business was simply to get enough scale and subscribers to cover the costs of licensing and distributing content. While there are a lot of choices right now as consumers, the business of licensing content has to change if any of the OTT companies want to make it long term. The current way of licensing content and the costs that go with it don’t support a profitable business models.