Billing in OTT platforms

In current times where technology is growing faster and faster, keeping up to date and being an innovative business is an essential point to mantain our positions at the forefront of an increasingly competitive market. Billing comes to OTT platforms as a revolutionary billing system.

There are many aspects to keep in mind to remain competitive. However, in this particular case, we will focus on an extremely important process, where customer retention, a fundamental asset for a company, is the main objective. We are talking about an invoicing system providing great benefits and that, perhaps, you have not heard of it yet. Let´s got for it.

What is Billing?

Billing is an automated invoicing system that greatly streamlines collection processes, providing security, speed, reliability and control. This model is mainly related to recurring periodic payments. 

With the great technological advances of recent years, which we mentioned at the beginning of this post, Internet payments have brought about a significant revolution in the way we pay our bills or purchase on our daily routines. We are living in an era in which physical money as we know, it is less and less used. 

Credit cards, the aforementioned Bizum or the NFC (Near-field communication) technology, which are incorporated in almost any smartphone nowadays, are significantly reducing cash payment, a payment method that does not seem to disappear completely. However, a certain progressive disuse will take place. 

This is the main reason why the impact of certain companies, which base the totality of their business on the Internet, allowing the possibility of associating each user with their bank account for any type of purchase, renewal, subscription, etc., provides some advantages, both for the user and for the company. 

Advantages of Billing on an OTT platform.

Have you ever wondered how the most important VOD platforms manage to charge so many millions of people without making the slightest mistake? This system is essential in the monetization models of an OTT platform based on subscription (SVOD) or one-off payments; renting content or watching a premiere before it reaches the general public (TVOD or PVOD). 

✔️ Collection automation.

The main benefit for customers is the lack of worries about payments. They already know that the money will be automatically withdrawn from their account, generally following the same terms (monthly, weekly, yearly, etc.), and that they will obtain an electronic invoice in the associated email account, so they can have a payment record. 

This fact, for companies with a large number of customers, is an important advantage. It saves a lot of time and allows an improtant management as payment collection to be made in a fast and secure way. From another point of view, Billing also allows mapping customers, extracting relevant information from each of them or adapting to their different types of portfolio.

✔️ Summary of activity in the electronic invoice.

Another advantage for the user is the possibility to obtain, in each invoice, the summary of all online payments performed in a determined billing period. For example, in a video-on-demand platform for which you pay a monthly subscription, you have additionally purchased exclusive content, or rented a movie in a particular month, you will receive in the invoice those additional payments, all through an automated process.

✔️ Lower cancellation rates thanks to Billing on OTT platforms.

As billings are made automatically, the customer cancellation rate hugely decreases. Before implementing this functionality, a large number of users would forget to renew the service, resulting in a significant loss of customers.

Currently, users are the ones who must personally cancel the automatic renewal if they want to stop using the product or service. Thus, relevant information on the reason for cancellation, through subtle questions during the cancellation process, can be obtained.

Bank card registration for billing on OTT platform

At a time when online shopping has been growing at a rapid pace for many years, e-payment is now fully standardized. Billing on an OTT platform is a huge advantage to automate all those recurring monthly or annual payments, one of the most tedious processes for such companies.

We know Billing since its appearance and we consider it a fundamental factor in an OTT platform. However, we are curious: Did you know this term and its importance within an OTT?