Over-the–top content refers to the content that is useful for delivering the TV and other film content through the internet without any need of subscribing to the traditional cable cords and Pay TV services and much more.
The OTT apps and the associated services can be delivered through internet and everything that users need. It has become the top entertainment today.
When comes to OTT applications and services, They are divided into three different kinds of revenue models like SVOD, TVOD and AVOD.
The telecom industry is also undergoing several changes with new things that are changing the business environment. There is a significant impact of OTT service providers on the operators. There are several new regulations which were included with the laws of net neutrality which remove the barriers to OTT apps success.
There is an enormous impact on the on the traditional operator’s revenue streams. The OTT services are raised more than 700 Billion sources of income and it is expected to increase the OTT revenues.
Table of Contents
- Benefits of OTT services
- Pros and Cons of OTT services
- OTT & Its Facts
- Growth of OTT
- OTT platforms
- The Ultimate Guide to OTT
- Did OTP have crushed the income of Cable operators?
- OTT revenue model
- Benefits of OTT for business
- Difference between the OTT and IPTV
- Effect of OTT on Telecom
- OTT Revenues Forecast [Study]
- Over-The-Top Mobile Video Content Market [Study]
- Roku Ad Insights Suite For OTT Advertising Measurements [Review]
- Roku Ad Insights Suite Includes
- Growth Statistics of OTT Industry in Brazil [Study]
- OTT Industry in Brazil
- OTT Live Sports Streaming – The Next Big Thing
- 4K OTT Video – The Next Big Thing
- OTT Video Analytics – The Next Big Thing
- OTT Video Analytics
- 20 Facts about Enterprise Video Analytics & Streaming
- 20 OTT Market Statistics That Will Blow Your Mind
Benefits of OTT services
• The Over the Top content had changed the way of using the internet and many businesses are also finding new opportunities to reach their potential audience across the web.
• With the advent of mobile devices, the communication has become the means of accessing the information.
• The main advantages of the streaming media through OTT services and applications are the 50 percent of the web content is entirely go towards the streaming media.
• The central fact that is vital for the business is to be on the right track to make use of the technology.
• More people are turning towards the streaming media than the text content.
• The streamed media allows the users to have a good control over the content and user can forward or backward the content.
• Another key advantage of OTT content is its quality. The quality of streaming media is comparatively very good and improved.
• Hence it turned as a useful tool for businesses. The streaming media can deliver real quality content.
• Users are attracted towards the streaming content and they simply like to consume the top content. Business who can provide the best content can win their audience with their services.
• Though companies are offering the media that is downloadable, the streamed content has greater priority.
• The streaming content is too hard to duplicate, so no worries about the content pirating.
• OTT video can provide the businesses a significant opportunity to take advantage of the emerging technology.
Pros and Cons of OTT services
The rise in competition the business to hire the qualified vendors to provide their services. So, consumers can get the best of all when comes to OTT services.
There is no need to go for different packages which are too confusing for all. The best providers will not get the penalty and hence they can provide the best customer support as well as the best resolution to the customers.
The monthly pricing is very low which starts from $5 with lots of free content from the major platforms like YouTube, Hulu, etc.
It is very easy to install the OTT applications on laptop or phones and saves a lot of time and effort.
The original programming will be offered from OTT services just like the cable operators do.
The main disadvantage of the OTT is its quality. Yes, OTT can provide good quality output to the users, but the quality will also depend upon the internet connection speed of the users.
Sometimes, the user might experience the buffering while watching the video content over OTT services or applications.
Some programs cannot reach faster on OTT compared to TV. Your program seasons might complete in cable and slow on OTT.
OTT & Its Facts
• OTT does not have the web browser capabilities.
• There will not be any cookies or flash.
• Some digital ads and third party tags are not compatible on OTT.
• The audiences on OTT are diversified and they are not limited.
• More than 24 percent video ad views in the year 2016 come from desktop and laptops only.
• The total OTT views on OTT devices have risen to 65 % at the end of Q3 in the year 2016.
Growth of OTT
OTT users are growing year by year and there is an increased number of viewers across the globe who gave the green flag to the OTT services instead of cable and other traditional Pay TV networks.
When comes to device targeting, 16 percent more growth is reported on VODs and 36% increase is reported on desktop or laptop.
9% increased the Tablet OTT users and smartphone users grew by 17%.
OTT platforms are ideal platforms for where users can access from their device and it is very comfortable comparing to other modes of content consumption through traditional cord connectors.
It can be accessible to anyone with a very limited expertise and the consumer can quickly perform all the required functionalities and the tasks where users can find the content with ease.
Some of the top OTT platforms are Apple TV, Netflix, Amazon Video, Hulu, Sling TV. Discovering the new content can be very fast and precise on OTT platforms.
Users mainly refer OTT platforms as they can get the top rated premium content which cannot be able to fetch in traditional cable networks.
OTT is the most comfortable way to watch favorite programs as users are more likely use their smart devices beyond just for calling and receiving.
That is the reason why the OTT communications were also significantly developed and people made these services as the part of their daily routine. We can expect more developments in OTT in future to enhance the viewer’s experience and marketer’s opportunities in new directions.
The Ultimate Guide to OTT
Over The Top or OTT is the most buzzing word across the web especially in entertainment. It occupied a central role with an impending merger of television and digital world.
OTT stands for Over The Top the term is used in the delivery of a film or TV content through the Internet without the requirement of any subscriptions like traditional cable or satellite TV services. The OTT services also include the Instant message and voice calls.
We all know that video traffic is on rising, and according to the recent reports, it is also revealed that video will make up to 70 percent of mobile traffic by 2021. The expectations of the consumer are also evolving, and they are expecting the quality services.
Did OTP have crushed the income of Cable operators?
Not exactly instead it increased another revenue stream for cable operators because, OTT the users need an internet connection which they need to consult the cable operators again.
The traditional distributors will continue to play a significant role in the OTT development and its growth.
OTT is a bit slow in development because of lack of strategy for better marketing and advertising.
It is lucrative for the pay TV providers to go with the current model that center the sale of bundles to the customers if they do not need them.
This model is working well, and it is the best for major media companies that have owned TV networks. They bundle the top favorite channels.
OTT revenue model
OTT is differentiated into three different revenue models such as SVOD, TVOD, and AVOD.
- It is defined as a subscription video on Demand.
- This type of service offers the subscription agreement that allows you to access the services where you can watch the shows with no limit.
- Most of these services are operated like monthly subscriptions type, and users can renew their subscription until they cancel the subscription.
- The general lock periods are six to 12 months. The subscription-based services are Netflix, Amazon, and Hulu, etc.
- AVOD means Advertising based Video on Demand. It is free for the users and has no subscription fee to access the service.
- It is the least explored model in business and OTT market.
- It is similar to YouTube platform type.
- TVOD means Transactional Video on Demand.
- ·The TVOD did not charge anything for a normal while sign up for a service to create the User profile.
- You only need to pay some amount basing on the type of content you watch.
- The TVOD services try and retain the customers by offering the attractive pricing specifically on selected content.
- It is also offering some new releases and has potential to build the business.
Benefits of OTT for business
- OTT content has changed the usage of internet and for businesses, it is new opportunity to reach the potential customers.
- The OTT had changed the communication system and hence changed the marketing ecosystem and interactions.
- The main benefits of streaming media for businesses are technology.
- More people are utilizing the technology, and the streaming media becomes the most convenient system.
- The streaming media is just limited with the bandwidth speed, and it makes an easy way to reach the potential customers.
- It also gives control over the content to move forward as well as backward if there is any need.
- Another potential benefit of using the OTT is quality content.
- The streaming content always attracts the users and businesses need to provide consistently.
- To get the high definition quality content, the speed of just 5MBPS to 7 MBPS are well enough for the super quality content and businesses can reach their customers with ease.
- Some companies offer the downloadable media in which the streamed content is hard to pirate, and there is very less choice to embed the same in another site.
- The streaming of OTT content can ensure better protection of your content.
Difference between the OTT and IPTV
The IPTV is a traditional type which delivers the content to a fully managed network. The protocol is commonly utilized in video content streaming with internet protocol. It is just like a private network which is not able to access externally.
In IPTV the video streams are delivered within the private network, and it is only accessible from the devices that are issued by the service providers or operators.
OTT, on the other hand, is available publicly over the internet and delivers the video streams. This type of content can be found in the setup boxes and also through any smart device which has the capability of accessing the internet.
IPTV has controlled networks where the operators are enabling to go multicasting with full efficiency. The playback devices will not support proprietary technologies. It has complete control over the bandwidth. The main disadvantage is that it does not serve the viewers who like to play the content whenever they want. Hence, the OTT delivered video content has become more popular.
Effect of OTT on Telecom
According to the recent research reports, it is revealed that Telecom had lost nearly 390 billion due to the OTT applications. They become dependent only on the cellular voice and SMS services. OTT has become the present as well as the future communication system across the web.
On the other hand, the OTT providers are fetching new opportunities for their business and remain at the top of the services. If telecom can go with the bundling of OTT with the various Telecom deliverables can be an excellent strategy to boost the ROI.
Finally, the OTT streaming has many considerable differences like its supports multi-platform, very few advertisements while watching the top content and it is much faster than the video on demand type of content. Consumers also benefit from the OTT content comparing with other services. So, OTT is always the Top in quality and deliverability.
OTT Revenues Forecast [Study]
Over the Top video had lead its services that are drive by the advertising which is expected to be doubled by 2020. According to the reports, it has good catch up internationally and the countries, such as China and Japan. OTT Revenues Forecast is explained here.
Both these countries had occupied the second and third places in the revenue generation in the over the top market.
In China the online television have soared its revenue of 38 million in 2010 and it was expected to increase more than 3000 million according to the reports.
The advertising with the video online have expected to be more than 8 billion and may doubled in the coming years.
According to the reports, it was expected to reach 18.2 billion by 2019 and even the SVOD services also get doubled from 4 billion to eight billion.
It is very interesting and as well as shocking to know about the video delivered through internet which changes the economy of entertainment.
It is predicted that, in the next seven years, there will be great dominance by the television which poises the growth towards 215 billion by 2018.
Even the mobile internet is also plays an important t role in OTT raise as the mobile users are increased drastically in the world.
By using the smart devices the accessing of internet and the web usage have tremendously raised and increased the penetration up to 56% which drives the digitalized advertising with increase in the revenue rates.
It was also expected that the streaming from the electronic devices also dominates the discs in the coming year.
Over-The-Top Mobile Video Content Market [Study]
Well, the term “over-the-top” first really came into prominence in the paid TV industry. It refers to one business model coming in and disrupting other existing business models.
So the classic case in the case of the paid TV industry was over-the-top, online video services coming into the market and disrupting the business of existing paid TV companies.
Now, when it comes to mobile, the over-the-top business model has really come into use with the introduction of smartphone vendors into the market.
So, Apple is the classic case, came into the market and through its own app store and content services disrupted the existing services of the operators.
Now, we’re seeing not just Apple, but other companies, Google in particular, with their app stores, also coming in over-the-top of existing services.
It’s a trend that we expect to continue from a whole range of different services and really every player in the mobile industry ecosystem must be aware of the possibility of competitors coming in over-the-top of their services and disrupting what they’re doing.
Video is already very important to mobile operators, especially as the ownership of smartphones amongst their subscriber base has increased.
Smartphones, of course, increasingly optimized for video viewing. Now, this has become especially important as we move into the era of 4G. 4G networks, of course, offering greater speed, higher bandwidth, and optimized for delivering video over the cellular network.
Increasingly, the big mobile operators are offering at least triple play, sometimes quad-play services.
So mobile of course, but also fixed-line broadband, fixed-line telephony, and often TV. So, TV, video services are becoming increasingly important to operators as we go forward. Everything about OTT Revenues Forecast is sketched in a detail way.
Roku Ad Insights Suite For OTT Advertising Measurements [Review]
Roku is one of the best TV streaming services among all Over the Top services. Recently Roku introduced a new Roku Ad Insights Suite for advertising measurements to check the effectiveness of OTT TV and Linear Campaigns.
The suite named as “Ad Insights” which helps the marketers to measure and check how effective advertising campaigns are running at the same time estimate the demography of Linear and OTT TV Ad content.
Roku Ad Insights Suite was driven by the Roku’s First party data and the linear and streaming viewership habits of millions of monthly active Account holders and billions of Roku TV streaming hours.
Roku is also collaborating with the research providers such as Kantar Millward Brown, Experian, Oracle Data Cloud, etc., to provide third-party measurements.
The Roku Ad Insights Suite allows marketers able to measure or quantify the demographic segments across OTT, i.e., apps, Linear TV, Desktop, Mobile, TV services provided networks like Roku.
Advertisers can target and measure the campaigns delivered to the Roku users who do not use traditional TV subscription services.
“Our Investment in New Measurement Tool reflects our strong commitment to helping the brands fully leverage the benefits of OTT advertising,” said Scott Rosenberg, GM of platform Business at Roku.
Roku Ad Insights Suite Includes
Marketers can measure or quantify the unique results of campaign reach by demographic segments across OTT, Linear TV, desktop, Mobile and TV streaming services like Roku.
Advertisers and Marketers can measure the effectiveness content promotion; TV ad Campaigns run on Linear TV, desktop, Mobile, and OTT Streaming.
Marketers can measure the result and target the campaigns delivered to the Roku OTT users who do not use traditional pay-TV subscription.
Marketers can gather and survey the real-time feedbacks, demographic insights.
Roku announced that Ad Insights was the First Over the Top platform to integrate Nielsen Digital Ad Ratings(DAR) and offers audience guaranteed demographic insights to the marketers.
Growth Statistics of OTT Industry in Brazil [Study]
Over-The-Top Content (OTT) is delivery by the third party, of audio, video, and other media. Always, the channel that will use in this process is the Internet. The ISP is aware of the content of the ‘packets’ being used to deliver the OTT, but he has no role to play either to view, control the distribution of the same. OTT Industry in Brazil is unique in itself that it differs from purchase/rental of video/audio from ISP. Everything about OTT Industry in Brazil is explained here.
OTT Industry in Brazil
Despite the enormous increase in number and usage of smartphones, the revenues of telecom companies offering SMS package are declining steadily. This decline is directly attributable to the concept of OTT. The number of smartphone users using OTT communications services is expected to be around 2.1 billion by the end of 2017. This one statement amply suggests the importance and popularity of OTT.
Brazil is considered a country offering a promising future for OTT. Brazil is a country in South America with a population of more than 200 million (July 2014 estimates). Coming to OTT in Brazil, this Latin American country has around 20 million Pay-TV subscribers and is the biggest market for this concept in all Latin American countries. As Pay-TV penetration is below 30%, there is huge potential for growth of Pay TV.
The industry is upbeat with an expected expansion of 300% till 2018. Though the business estimates are encouraging, certain ground-level issues need to handled before enjoying the huge potential of Brazil in the OTT market. Brazil has slow broadband speeds, and most of the population is devoid of credit cards (for making an online payment, etc.). This issue is to be resolved at the earliest to ensure proper revenue models once the industry starts getting rewards for its potential.
OTT industry in Brazil is different from other countries. Once if you check the Statistics of OTT Industry in Brazil that will show you the perfect way how the Brazilian people use Over the Top Content.
OTT Live Sports Streaming – The Next Big Thing
many sports lovers do not want to miss the live-action of any sports event. OTT live sports streaming is getting bigger and bigger in popularity and is also getting better. Virtual reality technology and subscription services and further technology advancements might make us see shifting towards live online sports from watching the sports event on television, the traditional way.
Recent studies revealed that people using OTT services for watching the live sports streaming are increasing. Though this is not a threat to the television services right now, it shows how important online streaming of sports is becoming. Large no.of people are subscribing to OTT sports services.
With the usage of mobile devices increasing, there is an appetite for sports content on these devices. Sports lovers want to access sports content on their smartphones and mobiles. Live streaming of sports is important for global tournaments that continue for a couple of days such as world cups or Olympics.
Big things are going to happen in the coming days in the sports streaming market. Amazon formed its sports group and recruited James Delorenzo as the head. Amazon is competing with the likes of Netflix and Hulu in sports streaming services. Hulu is also launching a live streaming service, which is exciting news for sports fans. Live sports streaming is going to get hotter in the coming days as more and more OTT providers are competing to win the audience.
The Internet is going to be the popular distribution platform for live sports. OTT live sports streaming will help improve the reach of a global audience. The live streaming of sports expands the audience and generated revenue for the leagues. The demand for sports leagues will be global once they adopt for OTT live sports streaming.
4K OTT Video – The Next Big Thing
Video production is finding new avenues and the latest addition is the 4K OTT (over the top). There are large numbers of players in the field of OTT (like that of Amazon, Youtube, UltraFlix, M-Go, Netflix, etc.) and all of them are thrilled about the 4K resolution.
4K OTT creation as well as providing the content is very easy. The creation of 4K can be taken up with new types of storage & video equipment. However, the whole exercise is economical as well. As such OTT is well ahead of Pay-TV and competition from broadcast companies.
4K OTT is having advantages like low entry cost (than regular broadcasters). Lower cost enables the OTT to have greater penetration into the market and overtake the existing players who are burdened with high entry cost as well as high running costs.
Potential of 4K OTT is huge and is poised to grow further in the times to come. A few facts about 4K OTT mention that: Presently, there are 2.3 million unique users. And more than 189 million unique users are expected to tap into 4K OTT by 2021. This phenomenal growth is quite a lucrative arena for the marketers.
Being the newest concept, 4K OTT is having limitations like lack of 4K content coupled with the lack of 4K streaming devices, and this is limiting the growth of 4K OTT. Despite the limitations, the OTT video services are already hot with Hulu nearing 12 million paid subscribers, Netflix with more than 75 million subscribers & Amazon with almost 50 million prime members.
4K OTT is gaining momentum but is still in its infancy stage. With the world-leading providers – software and hardware – this concept is going to the next big thing. The reality is not far as there are positive indications in this direction. Japan already showed its interest in broadcasting the 2020 Olympics in 8K, and this can be a boosting point for the 4K OTT segment. As such 4K OTT is the next big thing.
OTT Video Analytics – The Next Big Thing
The online content range is increasing, and it is even more important now that the preferences and behavior of the user are understood and is put to good use. Content owners are consuming data, but using it to improve the customer experience is important.OTT Video Analytics is trending in the streaming industry.
OTT Video Analytics
Using analytics to understand the customers is good, but it must identify what data is useful to us and what is not. Analyzing the OTT video analytics and understanding the traffic source, trends in consumption, etc., the content providers can manage the video deliver better.
Customers are making the OTT video phenomena popular. They are shifting from watching traditional television, and there is a great demand for them for streaming videos. They are ready to pay for video streaming services. OTT video analytics will help the operators to provide the quality of experience that the customer wants.
OTT video analytics help the content providers to get data about OTT video consumption, and they also can know their most popular videos, consumption trends, and much more. By understanding this data, they can develop premium products and consumer packages.
OTT video analytics helps to find the top content and how the viewers engaged with the content. The user attention span and which of the video content is not being watched by the viewers fully can be understood. Geolocation of the viewers can also be appreciated.
Data-drove OTT video services can be used to understand the behavior of the viewers and of the content that will increase the engagement. The video analytics can be used by the streaming company to improve its ad revenue also.
Overall video quality of the OTT video should be increased as poor video quality results in viewers abandoning the video. This is a performance metric that should be identified by the content providers. This is just an example of how OTT video analytics help in improving the user experience.
20 Facts about Enterprise Video Analytics & Streaming
The present trend works on the theme of video-on-demand services, and this made easy by the word enterprise by providing extraordinary services for the customers by merging with the corporate level, Enterprise Video Analytics.
- Television industry lost more than 30 percent of its consumers due to raise of video usage through mobile devices
- More than 20 percent people are watching the videos liner viewing per week
- The people of age group from 18-24 years are spending more than 17 hours in a week
- Mobile video viewing had increased the video share to more than 389 percent.
- Online video streaming increased to 60 percent growth
- More than 2.5M world cup live streaming viewers are noticed online viewing from the mobile apps
- The video ad views had grown towards 200 percent raise.
- More than 20 percent views video ad views were increased comparing to the previous year reports.
- Long form content and the live content viewing have greatly increased
- The video is considered as a top three marketing tactic by the B2B and B2C companies
- More than 65 percent CTR rates have noticed from video campaigns through emails
- More than 94 percent marketers are using video in their marketing
- More than 50 percent marketers are turned towards the streaming apps and marketing through live streaming
- More than 66 percent of viewers are watching up to third part of the whole video
- Video advertising reduced the unsubscriptions
- More than 80 percent traffic is estimated on the web when we reach 20-17 due to videos.
- Video streaming app have greatly increased and more than 25 percent growth was noticed
- More than 50 percent of startup enterprises got good success with video advertising
- The global enterprise video market was expected to grow more than 50$ billion when we reached towards 2019
These will define the how it is influencing the customers by following the highly qualified strategies and the steps to rule the market through the utilization of video will be notified.
20 OTT Market Statistics That Will Blow Your Mind
The biggest challenge of Over the Top market-facing providing the services to the consumers as per the Government regulation all over the world. The OTT market has already proven consumption over the Hulu, Amazon, and Netflix channels.
Heads of TV annalist and researchers concluded that Mobile OTT content has high in demand whereas compared to TV telecasts. The present and future generation live streaming, and Live broadcasting plays a dominant role.
- Nearly 100+ million people are using the OTT services in US
- It is expected that more than 500 million smartphone users will get increased by 2020
- The OTT communications had penetrated its reach to 50 percent during 2013 and expected to increase 80 percent by 2020
- The smartphone users are using the OTT services which increased from 80 percent by 2020
- More than 20% was accounted to US in global smart phone OTT service users by 2020
- In the next three years, it is expected that US will be on the top place in OTT services
- China is the leader of OTT market in 2013.China has more than 500 million OTT users in its country
- China, US, Brazil, India and Germany are in the top five positions in the OTT service usage.
- The total of 800 million OTT users are noticed from the top five markets in the countries.
- The North American market has raised to more than 30 percent in the OTT video streaming
- North America had reached to 15 billion in OTT during the 2019 year
- The Video on demand services is expected to make more than half revenue from the services like Netflix
- The OTT revenue for 2019 is predicted to be get doubled revenue and it is expected to be around 17.8 billion
- Subscription based OTT had increased to 25 percent growth
- OTT content which was in the form of video ads accounts more than 40 percent in the revenue during 2019
- North American OTT users are spending some 28$ as an average on OTT services on 2018 and now it increased more than 19 percent from previous years.
- The subscription revenues for OTT may be increased to more than 60 percent in the coming year
- The advertising revenue from the OTT services was noticed as 10 billion dollars
- It is expected that in the next five years, the OTT revenues may cross 80 million more.
- More than 60 million subscriptions are noticed from the OTT service providers like Netflix, Hulu etc.
Note: All the above stats are predictions based on previous years’ stats with respect to OTT Video Streaming.
Here are the mind-blowing fact about OTT Market statistics that you nerve know. There is a continuous growth in the statistics of OTT market every year raising the consumption about 50% according to stats.