What Do You Need to Start an IPTV/OTT Business?

More companies go online today, whether with the help of social media or any other tool, but they are trying to be closer to their customers and build strong relationships with them.

A video streaming platform might be an option. If you are thinking about IPTV/OTT platform creation, you have come to the right place. In this article, we speak about reasons why such a platform is worth investing in and what equipment you will need.

Why Starting an IPTV/OTT Business?

Let’s briefly cover what is IPTV/OTT. IPTV and OTT are the ways of delivering video content to consumer devices. The content is delivered with the help of different tech equipment, Internet connection, and IPTV/OTT platform. Such a platform is where videos are available for watching, and users can access them. Netflix or Hulu are excellent examples here.

To go further, a businessman always thinks twice before starting a new deal. He or she assesses risks first and potential revenue, and then makes a decision. So, let’s talk about the reasons for starting an IPTV/OTT business:

  • In the last quarter of 2020, people globally spent 239 billion hours watching videos on mobile devices. It means that you can reach more customers just by creating quality video content and streaming it via an IPTV/OTT platform.
  • IPTV/OTT platforms have wide functionality to help you monetize video content — AVOD, SVOD, TVOD. According to Statista, AVOD brings 51,58% of the total OTT market revenue, and SVOD takes 40,16% of it. It is also estimated that OTT market total revenue will reach more than $1 trillion by 2027.
  • New audience reach. By watching your content, customers will get to know you and trust you more as they will be aware of your expertise and life values. This is the way of building relationships with your audience. The more people know about your brand, the more of them will purchase it, the more income you get.

These reasons are important for the majority of businesses as they show that an IPTV/OTT business is potentially going to shine for years.

Let’s see what component you need to start an IPTV/OTT business:


IPTV/OTT Middleware is necessary for delivering video content directly to a customer’s devices. It helps a business owner to manage:

  • Subscribers
  • Content
  • Applications
  • Purchases
  • Interface
  • Distribution

Specifically, IPTV/OTT Middleware helps determine a range of factors:

  • What monetization models to use
  • What videos are free of charge
  • What videos are premium
  • What devices the platform works on
  • What countries the content is available in
  • How much each video costs
  • How to categorize the content
  • What notifications send to customers and when

And much more.

As you see, IPTV/OTT Middleware is useful in organizing your video streaming business. It also has analytics tracking functionality, using which you can understand what videos are popular among consumers and what videos are not. Moreover, it helps analyze users’ behavior and their journey through the platform. Such data is helpful for enhancing the platform and user experience.

You will need multi-platform OTT applications to improve the user experience. People watch videos on multiple devices but they cannot bring their desktops outside. That’s why they prefer using laptops, mobile phones, and tablets that are portable and can be used even in a line.

Of course, it is up to a business owner to decide. However, you should think about that. If people can access your platform from different devices, you will have increased traffic, and consequently, more revenue.

An important feature of an IPTV/OTT app is customization. For example, Setplex provides its clients with a fully customizable interface. Business owners can use their brand logo, colors, and other elements to make the platform recognizable and deliver their message.


IPTV Encoder/Decoder is necessary as they convert digital signals to analog signals. While encoding, a video is compressed into smaller pieces that are easier to be transmitted. During the decoding process, these pieces of video are transformed into a format that a user’s device can maintain.

You will need to partner with a company that produces set-top boxes. They are necessary for those people who want their conventional TVs to receive and support digital signals. However, providing a set-top box is optional.

And Content Delivery Network (CDN) will be useful for delivering content over long distances. When a business owner wants to expand their business to new territories, they can take advantage of CDN solutions. CDNs deliver content closer to users so that the videos are played with law latency. The other profits that CDNs provide are:

  • Faster video loading
  • Improved scalability
  • Heavy traffic sustainability

Consequently, with all these, the user experience is enhanced which is valuable for business growth.

It looks like a lot of things to think about. However, many companies that specialize in developing everything necessary for IPTV/OTT platforms offer the whole package of services and equipment so that you don’t need to think about it all by yourself. For instance, Setplex is such a company.

Final Thoughts

Starting an IPTV/OTT platform is worth a shot as it might bring a lot of profits: from being closer to customers and understanding their needs to making more money with monetization features.

We tried to cover all the necessary things you will need to launch a video streaming platform. As a business owner, you will work mostly with IPTV/OTT Middleware. The company you buy it from can take care of arranging the rest.

Author: Alena Puzanava

Alena is a content writer at Setplex, the company developing the end-to-end IPTV/OTT solution.

Similar Articles


Most Popular