What is Over-The-Top (OTT)? Understanding The Media Streaming Environment

What is Over-The-Top (OTT)?  Understanding The Media Streaming Environment
There have been several revolutions that took place so far in the mode of streaming the media content to the people. In the past, the broadcast television signals from the television station have been received by the television receiver. This terrestrial television had an Antenna that was mounted on a mast of the owner’s house to receive the signals. 

Then the introduction of cable TV connections made it better for the users to experience the next level of video streaming. As a next evolution dish and setup boxes have been introduced. This is the one we are all using mostly. In the order, Over-The-Top(OTT) is the 4th revolution that uplifted the media streaming industry to the next level.  

Let us discuss What is OTT, the example of OTT apps, the bright future for the mobile applications that incorporate the OTT economy. Opportunities in the OTT, etc.

What is OTT?

OTT stands for Over the Top. It is used to describe the emerging business models like OTT Apps and Devices that utilize the Internet to bypass the traditional infrastructures.  It refers to the content of film and television provided via a high-speed internet connection instead of a cable or satellite provider. 

The viewers who dislike watching the scheduled content of programs are often referred to as cord-cutters. It does not mean that OTT is free as the word bounds the services like Netflix, Amazon Prime, HBO Now, etc. This OTT service bypasses cable, broadcast, satellite televisions platforms. It is already started to occupy the media streaming environment and becoming the future of entertainment. 

Why Use OTT?

People love the OTT content that’s why many of us have the Netflix subscription even though if we also have a cable TV subscription in our house. Let’s see few reasons why OTT content is more attractive than the traditional media delivery system. 

Affordable Cost

Streaming services are considered to be pocket friendly comparing to the traditional cable prices. Amazon  Prime costs $12.99 for a month and $119 for a year. Netflix offers three streaming plans: Basic, Standard, and Premium. Basic streaming plan costs $8.99 per month, Standard streaming plan costs $12.99 per month and Premium costs $15.99 per month 

Exclusive Content

Netflix and Amazon Prime telecast their own content which will not be available in any other video streaming apps. There is a sperate fan base for these original content streamed in Amazon Prime, Netflix, HBO Go, Disney+ having an exclusive streaming license.

Accessible with Multiple Devices

This is one of the coolest things. People can enjoy the videos streamed from any devices like smartphones, tablets, Smart TVs, etc. 

Understanding OTT Even More

OTT had become popular with the sharp growth of Netflix. The concept of video streaming is the success for Netflix as it segued from telecasting the old movies and television shows to developing unique content and distributing that content s a licensed one very quickly. Its fast-growing popularity increased more among the younger audiences.  Think that the services of OTT fit into three distinct services.

OTT Services
OTT Content 
OTT Devices

Let’s discuss these distinct services below.

OTT Services 

Services that are managed offline using tangible and even physical materials are disrupted by the OTT. There are several examples of the OTT services like if someone wants to buy the share of stock, in the traditional way, your stockbroker should be physically present there to should your share numbers and fix the price. The counterparty will accept or reject based on the price. But now, the stocks are purchased online and accepted nearly instantly - bypassing the traditional system and letting many other participants take part and raise their voice.

OTT Content   

OTT Content - Instead of paying for the cable operators to deliver the content, people started using online video streaming apps like  Netflix, Hulu, and Youtube TV. It lets people watch programs in their free hours and even they can pause, forward, backward the video. 

OTT Devices 

Some of the OTT Devices are Roku, Chromecast, and Fire Stick. These devices allow customers to play their favorite streaming content on their TVs with an extraordinary experience. Here is a video below were you can know all about using the Fire Stick.

How is OTT Content Delivered?

It requires only few thinks to deliver the content. An internet connection and a hardware device. Mobile phones and tablets can download OTT apps from the stores make use of it. Personal computers, smart TVs, Apple TV can also deliver the OTT contents.

Suitable Contents of OTT Solutions

Video - This is the most popular and widely watched version of OTT media services. Example: Netflix, Amazon Prime, Youtube, etc.

Audio - Audio Streaming is also one of the OTT media services that include internet radio stations.

Messaging - Some of the apps make use of the OTT to make calls and send SMS and MMS. In the traditional messaging system, people send messages using cellular service. But think today, there are many messaging apps that make use of OTT to send and receive messages. For Example iMessage, WhatsApp it lets users send and receive messages when they are connected to the Internet.

Voice Call - Platform like Skype is the best example of the voice calling through the OTT media service.

Benefits of OTT Service

Highly Targeted Advertising 
Customer Segmentation
Increased Efficiency 

Is OTT Replacing the traditional Media Distribution?

Yes, off course! The OTT services make the practice of canceling TV or phone subscription to focus on the online video streaming apps like Netflix/ Amazon Prime/ Youtube. It will not totally cut off and take away the traditional cable services. As of 2019, it is estimated that there are 21.9 million American houses have cord-cutting cable services. And by 2023 it is excepted to reach 34.9 million. The leftover 86.5 million houses are still using cable services which will also reduce to 72.7 million by 2023.

Opportunities in OTT

You can build a Video Streaming App like Netflix, Amazon Prime, etc or ad-based platforms like Youtube and generate revenue using this. After building the app get the license to stream the original contents in your platform.  In this coronavirus pandemic season, here is a huge business that is hidden. Let me explain to you.

It is not possible and safe to open theatres and release movies. So what we can do with the films which are ready to release? We cannot simply waste the efforts and money spent on producing those movies. So the producers can sell those movies to any one of the video streaming app holders who can stream the original content. Every time the end-users watch that movie the producer earns a particular percentage of money. So everyone is profited here. 

So if you own a video streaming app you can get those movies and stream in your platform. Your subscribes will automatically increase when you release movies of popular actors or directors. In upcoming months it is expected that most of the movies are going to be released in video streaming apps like Netflix, Amazon Prime, etc. So make use of the golden opportunity.

And even you can build a mid-ware like Amazon’s Fire T VStick which is a new device joining the ranks of home entertainment streaming technologies. The Fire Stick plugs into your TV’s HDMI port giving you access to your favorite TV shows, movies, subscription services, music, photos, and games. The Fire TV Stick houses all of your favorite content and is easily transportable, so you can take your media anywhere!

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It is a great time to be a part of it. Now you may know the importance of the OTT service in the video streaming environment. Using OTT services start a video streaming app business-like Netflix/Amazon Prime/Youtube with our help. We are an On-Demand App Development Company providing you the best OTT Software Solutions. It is one of the futuristic business to shine as people nowadays require more unique media to watch. Enter into this billion-dollar business now.

Disclaimer : Startupmart neither represents nor has command over the trademark of "Netflix, Amazon Prime, Youtube". We are not doing any promotional activities and we use the term only for understanding our product. Our motto is not to harm any organization or individual.

About Muthu Priya

Muthu Priya is a enthusiastic Digital Marketing Executive who has strong background on-demand mobile app marketing, performance-driven habits and forward-thinking creativity to all programs she oversees. She writes about mobile app technologies, Startups, Industires. Stay in touch with the blog updates at Startupmart to know the trends of On-Demand Industry.

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