The term “OTT” stands for “over-the-top.” In video delivery, OTT refers to delivering video content over the internet without a traditional cable or satellite TV subscription. OTT video delivery has recently seen a surge in popularity as more and more consumers cut the cord and abandon traditional pay-tv in favor of cheaper, more flexible streaming options.
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OTT Video Delivery: Challenges and Aspirations
However, OTT video delivery is not without its challenges. Perhaps the biggest challenge faced by OTT providers is the issue of quality. Unlike traditional pay-tv, which delivers content via a closed network with controlled traffic flows, OTT video is provided over the public internet.
This makes it subject to all potential issues, from congestion and packet loss to inconsistent bandwidth availability. As a result, OTT providers must constantly strive to optimize their networks and deliver their users the best possible quality of experience.
Another challenge faced by OTT providers is discovery. There are so many available options it can be difficult for users to find the content they’re looking for. Many OTT providers are turning to recommendation engines and other personalized content discovery solutions to address this issue.
Using data about users’ viewing habits, these solutions aim to surface the most relevant and exciting content for each user.
One of the challenges of OTT delivery is that it can be difficult to reach a broad audience due to market fragmentation. There are many different devices and platforms that OTT content can be watched on, which makes it challenging to develop a single solution that will work for everyone.
In addition, internet speeds can vary significantly from one location to another, which can affect the quality of the video stream.
Another challenge is that OTT delivery is often used by people trying to avoid paying for traditional TV services. This means that it can be challenging to generate revenue from OTT content.
One way around this is to offer range only through an OTT subscription. This could include exclusive access to live events, original programming, or behind-the-scenes footage.
One of OTT providers’ most significant challenges is delivering high-quality video content to their subscribers. With consumers now able to view video content on an ever-increasing number of devices, OTT providers must be able to offer a consistent viewing experience across all platforms.
To do this, OTT providers must have a robust content delivery infrastructure that can scale up or down as needed. Additionally, OTT providers need to consider the different bitrates required for each device and ensure that their content is encoded at the appropriate bitrate.
Another challenge OTT providers face is ensuring that their business models are profitable. This is because the cost of online video content can be pretty high. To ensure their business models are sustainable in the long term, OTT providers must continually innovate and find ways to reduce their costs.
One way to do this is by leveraging cloud-based solutions, which can help reduce the upfront capital expenditure required to launch an OTT service.
The biggest challenge facing OTT providers is bandwidth constraints. Due to the large file sizes of HD video content, users often need a high-speed internet connection to stream videos without interruption. However, not everyone has access to high-speed internet, limiting OTT providers’ potential reach.
Some OTT providers have begun offering lower-quality versions of their video content to overcome this challenge. This way, users with slower internet connections can still access the content they want to watch, even if it isn’t in HD. Others have begun compressing their videos more efficiently so we can stream them at lower bitrates without sacrificing quality.
Lack of standardization
Another challenge facing OTT providers is the lack of standardization across devices and platforms. Because it can use so many devices to access OTT content (smart TVs, streaming media players, mobile phones, etc.), it can be difficult for providers to create a consistent experience for all users.
This lack of constant nature can lead to confusion and frustration on the part of users, which could ultimately lead them to abandon your service in favor of a competitor’s.
To address this issue, some OTT providers are working with device manufacturers to create better integration between their platforms and specific types of devices. Others are working on creating their own proprietary hardware devices that offer a more seamless experience for users across all kinds of devices.
Another common challenge faced by OTT providers is piracy. Due to the ease with which digital files can be copied and shared online, it’s easy for users to illegally download or stream video content without paying for it. This unauthorized use of copyrighted material costs OTT providers millions of dollars in lost revenue annually.
There are a few ways that OTT providers are combating piracy. One is using digital rights management (DRM) technologies to protect their content from illegally copying and distributing. Another is working with advertising partners to help offset the cost of lost revenue from pirated streams.
Finally, some providers are beginning to offer free ad-supported versions of their premium content to deter users from pirating it.
One of the biggest challenges faced by OTT providers is delivering high-quality video content to users without suffering from network congestion and buffering issues. This is because OTT video is provided over the public internet, subject to interference from many different sources.
To combat this, OTT providers have invested heavily in optimizing their networks for video delivery. For example, Netflix has developed its own proprietary content delivery network (CDN) called Open Connect, which delivers Netflix traffic directly to ISPs’ networks. This ensures that Netflix traffic is not impacted by congestion on the public internet.
Another challenge facing OTT providers is how to monetize their content effectively. Most OTT services are offered on a subscription basis, but with so many choices, it can be tough to convince users to sign up.
To overcome this challenge, many OTT providers offer their services on a “freemium” basis, where the actual content is free, and premium content is available for a monthly fee. This gives users a taste of what’s on offer and encourages them to upgrade to a paid subscription.
The rise of OTT video has been nothing short of meteoric. In just a few short years, OTT video services like Netflix, Hulu, and Amazon Prime Video have transformed how we consume video content.
Thanks to OTT’s convenience and flexibility, more people are cutting the cord and ditching their expensive pay-TV subscriptions in favor of cheaper (or even accessible) OTT alternatives.
However, as popular as OTT video has become, it’s not without its challenges. One of OTT providers’ most significant challenges is the high content acquisition and delivery cost. Acquiring and delivering streaming video content is incredibly complex and requires substantial infrastructure investment.
Additionally, OTT providers must contend with fierce competition from traditional pay-TV providers and one another.
Despite the challenges, the opportunities in the OTT space are vast. For forward-thinking companies, the time is now to invest in developing an OTT strategy. Those who don’t risk being left behind as the world moves ever closer to a future where all video content is delivered via the internet.
What is OTT?
OTT, or “over-the-top “video delivery, refers to delivering video content via the internet without needing a traditional cable or satellite TV subscription. In other words, OTT allows consumers to access video content from various providers without having to subscribe to a standard pay-TV service.
The rise of OTT video has been nothing short of meteoric. In just a few short years, OTTvideo services like Netflix, Hulu, and Amazon Prime Video have transformed how we consume video content.
Thanks to the convenience and flexibility offered, more and more people are cutting the cord and ditching their expensive pay-TV subscriptions in favor of cheaper(or even accessible)OTT alternatives.
Despite the challenges faced by OTT providers, the over-the-top video market continues to grow at an incredible pace. In just a few short years, it has gone from being a niche offering to become a significant force in video delivery.
This growth is only set to continue in the years ahead as more and more consumers cut the cord and embrace streaming as their primary method of consuming video content.
As we have seen, there are various challenges to delivering video over the top. But with careful planning and execution, many of these problems can be overcome. The potential benefits of OTT delivery are clear, and more businesses are exploring this option.
Contact us today if you want help launching an OTT video delivery service. We have experience in this field and can help you get started on the right foot.