Over-The-Top (OTT) Services is Strengthening the Entertainment Industry

Over-The-Top (OTT) Services is Strengthening the Entertainment Industry

“Over the top (OTT) services refer to any sort of video or streaming media that offers a viewer with direct access to movies or TV shows via the internet. Netflix, Amazon Prime Video, and Hulu are among the most popular OTT services.”

Nowadays it’s always “Netflix and Chill” when somebody questions us about our plans after work. Honestly, that’s some good way to unapologetically spend time after a tiring day. The digitalization of technology has played a significant role in the global success of enterprises. In the last few decades, the entertainment and media business has experienced unprecedented expansion. Consumers are no longer reliant on television sets for entertainment.

On OTT services, a new era of binge-watching is gaining traction. Over-the-top, or OTT, is the preferred option for the majority of media and entertainment customers. The adoption of smartphones, computers, tablets, and low-cost internet packages are all driving factors in the shift to OTT channels.

Streaming has always been a part of some of our lives. Others will recall a period when there were only a few TV networks and no cable television, and still, others will recall a time when there were only a few TV networks and no cable television. Regardless of how you experienced the rise of over-the-top (OTT) streaming, we are all smack dab in the center of it. What brought us here? And where do you think this technology will take us?

How OTT got started?

RCA launched NBC, the first television network, in 1939, and for the next four decades, NBC, ABC, and CBS dominated television. AT&T lay the first coaxial cable in 1941, paving the way for cable television, but it would take another decade for cable to become a widespread distribution method.

Regulations and standards shaped — and continue to shape — the television and cable industry. The National Television Standards Committee (NTSC) standard paved the door for color television in 1953, while the Federal Communications Commission (FCC) began loosening limitations on cable companies in 1972.

As a result, when RCA built the Satcom satellite in 1975, it opened the floodgates, allowing HBO, the first pay-TV network, to syndicate content across the United States. The first cable networks, such as C-SPAN, Nickelodeon, and ESPN, began to appear in the 1970s.

By 2009, Web 2.0, the first iPhone, and the transition from analog to digital television had all pushed a sense of being able to watch whatever you want, whenever you want—even on a mobile device. Media corporations had been focusing on the technological issues of delivery up to this point, managing their own delivery networks to reach viewers.

New OTT providers arose as a result of the emergence of high-speed internet, free of the constraints and complications of running their own networks. Delivering content across someone else's network, on the other hand, presented its own set of issues.

Why OTT?

The OTT revolution has been most closely associated with Netflix. The truth is that the internet is open to the public and scales far better than sending DVDs. Consumers also want the ability to stream material on their various mobile devices at any time, which benefited content providers by allowing them to reach out directly to consumers.

TV and cable networks used to license content to operators, which was how they made the majority of their money (rather than advertising), but with the rise of OTT, this model is progressively disappearing.

Pay-TV is on the decline, therefore subscriptions, commercials, and premium video-on-demand are now the main sources of revenue. COVID also required OTT providers to adopt a completely new business model: theatrical distribution of content over the internet. Consider Warner Bros. launching films in cinemas and on HBO Max, or Disney allowing Premier Access subscribers to pay a small monthly fee to have early access to Disney+ movies. Even the silver screen is now available on-demand.


Advertising video on demand (AVOD), subscription video on demand (SVOD), and freemium and transactional video on demand make up the OTT market (TVOD).

a) Advertising Video on Demand (AVOD): These models monetize traffic on a specific content by inserting advertising in between viewings. One of the most well-known examples of AVOD is YouTube.

b) Subscription Video on Demand (SVOD): The OTT platform provides the audience with a variety of subscription plans for various time periods. Subscribers can pay their monthly fees and access the platform's content from any electronic device. Popular SVOD platforms include Amazon Prime, Netflix, and others.

c) Freemium Model: Freemium OTT services combine AVOD and SVOD functionality. Some of the content available for viewing is free, while consumers must pay a subscription fee to view exclusive content. ErosNow, Disney+ Hotstar, SonyLiv, and other well-known freemium sites are examples.

Where will OTT take us? 

There are a few obstacles that will influence how OTT develops and what the future may hold.

Consolidation of media

Netflix spent $17 billion on original content alone last year. The technological infrastructure and content delivery platform aren't included. It's costly to generate content, and it's even more costly to bring that content to customers in the quality they expect, on all of their preferred devices. As a result, more media consolidation is expected to occur in the future.

It is important to have a good experience

Technically, the cable television experience is more controlled; there is a single bitrate, and material is designed specifically for a particular device, thus there is only one delivery option.

OTT is transmitted over the often-clogged public internet, adaptive bitrate is required, and material must be accessible across thousands of devices, resulting in over 150 million delivery permutations. The potential for OTT content distribution is enormous. This means that content producers need to be able to monitor the quality of experience and comprehend the full consumer journey more than ever before.

The choice of the audience

Even though we didn't all grow up with a streaming, millions of people now use it as their primary source of entertainment. We've grown accustomed to being able to watch whatever we want, whenever we want, on whatever device we want.

Consumers now have complete power over what used to be controlled by publishers, king networks from the 1940s, and upstart cable providers. As a result, personalization will become more prevalent, aggregators will emerge, and user-generated content will continue to expand.

Major Market highlights:

  • In terms of the percentage of respondents who subscribe to each platform, Hotstar leads the Indian OTT video content industry, followed by Amazon's Prime Video, SonyLIV, Netflix, Voot, Zee5, ALTBalaji, and ErosNow. Users of ErosNow were the most engaged, with 68 percent reporting that they watched content on a daily basis. Partnerships have helped the platform to grow. It worked with Xiaomi in India to pre-install smart TVs.
  • The Walt Disney Company stated that its Disney+ program had reached 10 million subscribers in the United States after its first introduction, placing it fourth on the list. In addition, Netflix had 69.97 million customers in the United States. The United States accounts for around a third of Netflix's total international streaming user base.
  • IN10 Media's DocuBay, an international documentary VOD streaming service, has announced a major partnership with Foxxum. As part of the deal, DocuBay will make its collection of premium content available on the Foxxum Smart TV platform around the world, including in Europe and the United Kingdom.

Conclusion: Huge impact on the economy

With the rise in smartphone technical features and increased internet usage, the entertainment industry is benefiting from OTT services. Due to excessive free time and demand for edutainment and enjoyment during the lockdown, the pandemic Covid 19 has contributed significantly to the subscription of popular OTT series.

Because filming of TV serials and movies was halted owing to the lockdown, consumers moved to OTT and demand offshoot at a rapid rate. Because of the convenience and diversity accessible without commercials, people are becoming more comfortable using OTT services. According to current trends, the OTT market will continue to grow fast in the future years. Companies will now have to contend with changing consumer preferences for OTT platforms rather than offline entertainment.

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