We have been watching various interesting online videos across different platforms. Have you ever pondered the significance of these platforms? They’re called OTT (over the top) platforms, where streaming videos are just the tip of the iceberg. These platforms wield formidable influence and stand as powerful tools for businesses to foster brand awareness and drive revenue. So, let’s dive in to explore more about these platforms.
What is OTT (Over the Top)?
OTT stands for over the top. It refers to the delivery of film and TV content over the Internet, bypassing traditional broadcast, cable, or DTH providers. This allows users to access content whenever they want, across various devices. OTT services are offered directly to viewers via the Internet, bypassing cable, broadcast, and satellite television. Over the top video streaming has become a new popular trend. According to a recent study by Extrapolate, the global OTT (Over the Top) market is estimated to be valued at $189.67 billion by 2030. This value indicates immense growth in this sector in the years to come.
How is OTT Delivered?
OTT streaming is delivered over the Internet, and it can be accessed through various platforms such as smart TVs, streaming devices, computers, tablets, mobile phones, or gaming consoles. Users can access multiple distributors for specialized programs and view channels by app switching, giving them more control over the content they choose to purchase and watch.
OTT platforms employ an internet-based delivery system, enabling users to access content with just an internet connection and a compatible device. The content is delivered only upon request and in a unicast or one-to-one transmission method, meaning that each end-user device has a unique stream of content.
OTT (Over the Top) vs. Traditional Movie Theatre: What’s the Difference?
The difference between over the top platforms and traditional movie theaters lies in the mode of content delivery and the viewing experience.
OTT Platforms
- OTT platforms deliver video content over the Internet, allowing users to access it on demand without the need for a traditional cable or satellite TV subscription.
- These platforms provide convenience, a wide variety of content, and the flexibility to watch according to individual preferences.
- OTT content, such as web series, often has longer average durations, ranging from 7-9 hours, offering extended storytelling opportunities.
Traditional Movie Theaters
- Theatres provide a physical venue for people to watch movies on a big screen, offering a communal viewing experience.
- Theatres offer a large screen, better sound quality, and the opportunity to watch a movie with a group of people, providing an immersive and shared experience.
- Movies shown in theaters typically have shorter average durations, ranging from 2–3 hours, providing a concise and focused viewing experience.
Exploring the Key Types of OTT Platforms
OTT (over the top) platforms can be categorized into three main types, such as:
1. Video Streaming Platforms
These platforms deliver streaming content via the Internet across devices such as mobile phones, smart TVs, computers, and tablets. They offer a wide range of video content, including movies, TV shows, and original programming. Examples of OTT providers in the video streaming space include Netflix, Amazon Prime, HBO Max, Disney+, Hulu, and YouTube.
2. Audio Streaming Platforms
OTT platforms also include audio streaming services for both music and podcasts. Spotify is the most popular OTT platform in the audio streaming space.
3. Online Messaging Platforms
Certain messaging platforms, such as WhatsApp, Telegram, Slack, and Signal, are some of the popular OTT platforms in the online messaging space.
What has OTT (Over the Top) to Offer Businesses?
OTT offers several benefits for businesses, including:
● Increased Brand Awareness and Market Expansion
Companies benefit from new partnerships by increasing brand awareness, expanding into emerging markets, and enhancing the value of their products.
● Wider Customer Reach and High Interactivity
Over the top platforms boast broader customer reach compared to traditional channels, being less intrusive in customers’ lives while maintaining high levels of interactivity.
● Flexible Business Models
OTT businesses can make money through membership fees, subscriptions, advertising, and pay-per-view models, offering customers more flexibility in how they consume media.
● Targeted Advertising
OTT advertising allows businesses to reach specific audiences and deliver personalized ads, track click-through rates, and quantify impact, providing the benefits of old media with modern measurement capabilities.
● Improved Advertising Strategy
OTT advertising allows marketers to reach a smaller but more targeted audience with non-skippable advertisements, which can help improve a brand’s advertising strategy.
What’s New in the Realm of OTT (Over the Top) Platforms?
Below are the latest trends that are significantly reshaping the over the top video streaming.
● An OTT Aggregator
It refers to a digital platform or service that allows users to search, browse, and watch content from different streaming platforms without switching between numerous apps or websites. These aggregator platforms gather and combine content from multiple streaming providers, offering it to users through a unified interface. Tata Sky Binge, Viaccess-Orca, and Comviva are a few of the major examples of these platforms.
● 5G: The Game-Changer
Currently, people increasingly favor consuming content without interruptions. The advent of 5G Internet has revolutionized the field of OTT video streaming, standing as a game-changer. 5GSM has a rate of around 100x better than other 4G-based networks, offering faster access speed and potentially improving video streaming quality. This trend is expected to boost the live streaming of sporting events and cater to the growing competition in the OTT content publisher space.
● Craze of Subscription
Many avid television enthusiasts opt for OTT subscriptions to watch their favorite content. These subscriptions typically operate on a pricing model. On the OTT platform, viewers need to purchase specific subscription packages to watch specified content, such as the latest movies, shows, and dramas, without any restrictions. Moreover, it allows users to watch break-free content.
In Summary
OTT (over the top) platforms have revolutionized the way we consume digital content by providing convenient access to a diverse array of videos across multiple devices. Their impact extends beyond entertainment, as they have become extraordinary tools for helping businesses expand their reach, build brand awareness, and drive revenue. As technology continues to evolve, OTT platforms are poised to play an even more significant role in shaping the future of digital media consumption and marketing.
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