OTT services, such as Netflix, Zoom, Spotify, etc, were beneficial both for their owners and users during the coronavirus outbreak. However, when the pandemic is abated, these services will potentially stay popular and widespread. Why? We will cover five reasons for that in this article. Keep reading!
But first, what is OTT exactly? Let’s give it a closer look.
It is better to explain in comparison. There are a lot of ways to deliver programs and videos to an end-user: from satellite to the Internet. Satellite and cable TV are getting obsolete due to their rigidity. They require a TV set and a satellite or cable connection while OTT services deliver content to users through the Internet with the help of multiple devices.
OTT is a rather widespread technology due to a lot of possibilities it offers to companies and content makers. Over-the-top services include not only video streaming, but also music streaming, messaging, and conferencing.
If we are talking about video, OTT services provide opportunities both for video-on-demand (VOD) and live broadcasting, offering more growth potential for businesses.
OTT services are extremely popular today both among viewers and content makers. Here is the list of things that you should know about them:
Content creators upload the pre-recorded videos on streaming services, and users decide when and where to watch them. There is no need to wait for a time when the program starts and adjust your day to that time as it happens with TV channels.
The Internet makes it flexible and convenient. Viewers visit a specific website with the whole library of videos and movies to watch. They choose what they want because there is no schedule. The content is pre-recorded and stored on servers. All users need to do is play it.
Additionally, over-the-top applications make it possible to watch videos wherever viewers are. These apps deliver content on any device: from mobile phones to smart TVs.
To summarize, viewers are to decide what, when, and where to watch.
It’s essential for a business to know how to get revenue. Luckily, the OTT video streaming platforms provide many monetization capabilities. For example:
- TVOD (Transactional Video-On-Demand) is the model when users pay for a single unit of content (ex., for one video). Content providers usually allow viewers to buy a video, like, forever or rent it for a certain amount of time.
- SVOD (Subscription-based Video-On-Demand) model offers viewers to pay for a monthly subscription to access the videos on the platform.
- AVOD (Advertisement-based Video-On-Demand) model is a great opportunity to offer videos free of charge. The nuance is that users will have to watch ads before, during, or after the video.
These are the three main models which providers often mix. For instance, along with videos available with a monthly subscription, there can be Premium videos that require additional payment.
While cable and satellite services are limited to TVs, OTT services are available on a number of devices, which makes them incredibly popular.
This fact makes it convenient for users to access video content wherever they are. While they are waiting in line or going on a bus or something else, viewers can take their smartphones and enjoy the time. The same concerns the situations when users want to watch content on big screens, the ones their Smart TVs have.
However, video content cannot be available if the provider hasn’t taken care of developing over-the-top applications. These applications often come along with OTT platform solutions, but it is up to a company to decide whether to have one or not.
Disney alone had 179 million subscribers at the end of 2021. Netflix has experienced solely audience growth since 2011.
According to Statista, the OTT video industry revenue is expected to reach $281,659m in 2022. By 2026, the revenue is predicted to be $427,765m. Additionally, it is projected that the number of users will amount to 3,930.3m by 2026.
It seems like the OTT industry is and will continue to be extremely profitable.
Probably, OTT is going to assimilate new technologies and approaches transforming into something new. For instance:
- The development of AR/VR can make it possible for some of the consumers to experience the event like in real life but be on the other side of the world. The technologies provide a 360-degree view creating the feeling of actual presence at the stadium.
- There is a clear trend among OTT services to focus on a specific video genre. For example, some of them offer only romance stories or limit the content to horror movies, etc.
- Many OTT services translate their platforms to other languages to reach new audiences across the world. However, translation is just half of the whole process. The language needs to be adapted to the peculiarities of the market. It is called localization, and it is quite a trend.
These are just a few tendencies in the OTT sphere. However, they make the industry promising and encouraging. How cool is that, hah?
With so many profits, a business should consider having an OTT platform. It can help connect with customers on a deeper level. Consequently, when it comes to purchasing a product or service, a customer will, at least, consider your brand, which leads to revenue growth.