Over the top or OTT refers to the delivery of both audio and video streaming content to users through the Internet. It’s a multi-billion-dollar industry that is transforming the way people consume media content.
OTT streaming platforms are currently a trending alternative to satellite broadcasting services and more people are choosing cord cutting. Launching your OTT platform for TV and mobile devices is surely one of the solid ways to grow your audience base.
In other words, OTT makes accessing content on the go possible- wherever and whenever you want it. In this blog, we will talk about the power of OTT and trends that will shape up OTT video streaming.
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Why OTT video streaming matters to content creators?
The demand for on-demand video consumption is increasing, and people expect to have access to videos whenever they want. Mobile screens are preferred alternative to watch the same on the go. Viewers might not always be able to watch their favorite Netflix series on their laptops or TV’s while on the go. It’s just the way this world is.
Over 50% of US homes with WI-FI already consume OTT content for about 100 minutes every day on either their TV sets or mobile devices. It won’t take long for the rest of the people to catch on with the trend and accessibility. These figures clearly indicate that the OTT will be one of the most profitable industries by 2022.
While the most popular OTT services are Netflix, HBO, etc., there’s more to OTT than these names. TV network CBS has their own OTT service and video companies like YouTube and Hulu have their own versions of Internet-based TV service. All of the data elucidates why OTT video streaming matters to video content creators. If you are thinking about how to launch your OTT platform, there is no better time than now.
The major factors that make OTT videos streaming appealing to audiences are:
Ease of access
These days, users have become accustomed to watching videos wherever they are, whenever they want to.
Unlike TV broadcasts where viewers have no control as to when and where to watch, OTT video streaming offers more control over the shows they want to indulge in. That’s why more and more users are willing to pay to customize how they watch videos.
When compared to cable subscriptions that offer less control, viewers are interested to pay for OTT services that offer them more access and control over the programs they love to see. It helps in saving money, and at the same time offers the best viewing experience.
However, the power of OTT and video streaming lies in the functionalities it offers. For the same reason, the demand for white-label OTT platforms with advanced features and functionalities are increasing.
Users can stream content on laptops, TV, smartphones, tablets, digital media boxes, game consoles, and a variety of devices. Another important value-added features offered by OTT services is the capability to integrate user accounts in social networks. This enables storing user-generated content and accessing it from different devices easy.
OTT Trends that will shape the future of video streaming
As we enter to 2020, the journey towards 5G adoption has already started. This will cause a massive shift to OTT services to consumer media. Popular OTT video providers and traditional network operations are collaborating to capture greater market share creating product offerings that are consistently evolving.
However, if you want to stand ahead of the competition, it is important to understand what to offer, whom to collaborate with to gain new customers and increase revenue.
Here are four trends that shape up the global landscape and will play an important role in informing the industry players about what to adopt, in order to succeed.
Strategic partnerships are transforming the ecosystem
With the intense competition, the market is active with consolidations and partnerships with businesses looking to expand into new markets to differentiate themselves.
For example, partnership with Netflix and Nickelodeon soon after Disney plus launch, Amazon Prime’s initiative to feature HBO’s content, and Verizon’s purchase of Yahoo, all indicates the same.
The consolidation is expected to continue and will result in three different types of content players leading the show- Mainstream content, niche localized content, and OTT sports content.
The value chain of content creation and distribution is changing
OTT streaming is not just disrupting the way content is created but also how it’s distributed. Today, the majority of households have access to OTT services and they consume in the same way as traditional TV viewers.
With said, there are still people who consume TV programming through traditional business in addition to OTT services. In short, viewers are spending more on home entertainment, a trend that is expected to grow in the future as well.
Based on the current viewing behavior of audience, big growth opportunities exist in both liner OTT services and live streaming platforms. In an effort to widen the reach and to maximize income, entertainment, and sports companies are developing their own OTT services and collaborating with leading online video providers.
Mobile is becoming the primary content delivery channel
The mobile devices have become a widely accepted channel for video delivery surpassing TV. As mobile network operators accelerate mobile broadband deployment, access to high-quality mobile streaming is growing at a fast pace. Partnerships of OTT services and mobile network operators are validating the growing trend of customer’s mobile adoption.
The world of media and entertainment is constantly changing. With the power of the Internet, people from all over the world can enjoy video streaming services. Due to technological advancements, it is now possible for businesses to target potential customers globally. For this reason, OTT presents brilliant opportunities for businesses to reach out to a wider global audience. If you want to build your own OTT business, the market holds fresh opportunities for new players as well. The aforementioned OTT trends will further improve the appeal of OTT video streaming and will continue to drive industry’s exponential market growth.