OTT, a term, that has been noticed by most of us in the past few years, but very few of us know what OTT is and how it works. In this blog today, we’ll try to put some light on the OTT industry, and“ we’ll take a closer look at some of the latest trends in the OTT industry.
OTT stands for Over the Top. OTT apps can stream content without the use of a cable box. This eliminates your dependency on cable providers, geographical restrictions, time foundations, etc. Now you can watch your favorite content on the internet anytime you want, and it is free too, in some of the OTT apps. Examples of popular OTT services include Netflix, Amazon Prime Video, and Disney+.
OTT streaming has become increasingly popular in recent years, with more and more people opting to watch their favorite TV shows, movies, and other content on the internet rather than traditional cable TV.
You’ll be surprised to know that the OTT video market worldwide is expected to double in size by the year 2023!
Now let’s explore some of the latest features & trends in the OTT industry :
Diversified Distribution Models : In recent years, the OTT streaming space has diversified to include content distribution methods like Free Ad-Supported Streaming TV and Premium Video on Demand. SVOD has been growing since 2006, but that growth is beginning to slow down. So top SVOD platforms including Netflix are experimenting with new content and monetisation strategies.
Free Ad-Supported Streaming TV: Traditional TV providers have invested in the OTT market through FAST platforms and are rising in popularity. For example, Comcast owns Peacock, and CBS owns PlutoTV. The top FAST platforms include Peacock, Roku, and PlutoTV.
Multitude of Platforms: Super-aggregators allow their audience to access multiple streaming services through their platform. This is in an effort to become the top hub for streaming video content. For example, Amazon Prime Channels allows members to subscribe to premium streaming channels – like Paramount+, AMC+, the Smithsonian Channel, and more – all within the Amazon Prime Video interface.
Localized Content: OTT platforms have expanded their content offerings to serve local content to geographically diverse audiences. Audiences can now stream local news and weather based on their location. Large streaming platforms are expected to continue their effort to localize content across the globe in 2023.
Advertising Expansion: With the increase in streaming channels and online viewing, OTT video ads are taking over traditional television advertising. To compete in the current landscape, brands must invest in OTT advertising to reach consumers. In the first quarter of 2023, Hulu(A giant in the OTT industry) reported 45.3 million paid subscribers, a 39.4% increase from the first quarter of 2021. In addition, a recent Hoot suite study found that 92% of internet users watch video content online weekly.
Growth Of CTV: CTV stands for connected TV. As individuals working from home, we are constantly strained towards using the laptop or mobile for activities. In such times, it would be great to access video content on another convenient platform. Thus with the OTT technology, Smart TVs started making great revenue here. An online source revealed, ‘’The Asia-Pacific region will increase OTT TV and movie revenue by 90% to $54bn by 2026.’’ While the traditional TV viewing habits were great, the use of OTT technology made it even more, easier to access exclusive content.
User Experience Treated On Priority: Today, if you see around you, you’ll find multiple OTT platform providers. Each of them has something unique and more to offer. While one platform would offer exclusive content, another platform would have cheaper subscription plans. In a simpler manner, there are multiple options for OTT platforms that viewers can choose from. This is one of the reasons why the user experience concept grew into the picture. User experience, in simple terms, refers to making the OTT platform easy for users. From the navigation process of finding the content to recommendations, users will prefer the best online video platforms that make watching content easy for them. Due to this, User experience became a key feature and an important criterion when you plan to create your own OTT platform.
Original & Interactive Content: One of the critical differentiators between OTT services is the amount and quality of original content they produce. Services such as Netflix, Amazon Prime Video, and Hulu have invested heavily in creating exclusive programming for their platforms. users can interact with and control the outcome of a story. Netflix, for example, has released several interactive shows and movies, including “Black Mirror: Bandersnatch” and “Unbreakable Kimmy Schmidt: Kimmy vs. the Reverend.”
Conclusion – With the features & trends listed above, we are now certain that this platform has a bright future. With the pandemic in place, the rise in OTT grew twice more. This indicates that OTT streaming is the ultimate solution in case of any hassles. Whether through original content, streaming bundles, interactive experiences, or multi-device streaming, OTT services offer users more and more ways to access and enjoy their favorite content.