Since the breakout of the Covid pandemic, the world has changed drastically. Especially as it concerns the video entertainment sphere.
People all around the world are spending more and more time watching TV shows and movies via the Internet, leaving cable TV behind.
This is called OTT (over-the-top) media distribution, and it uses IP networks to deliver the content.
Benefits of OTT
As we already know, OTT technology was created to deliver content online utilizing IP networks.
Its main feature lies in the fact that OTT transmits signals using these networks of media content producers, and providers cannot influence this process. It takes place using the HTTP protocol.
The user will find OTT beneficial due to the following facts:
- It gives the opportunity to stream content.
- The only thing that the client needs to watch a favorite show is to have stable Internet access.
- The client can also utilize any device, so they must not seat in front of TV.
- ISPs do not have the control over OTT, and there is no link to an ISP.
- Many services linked to OTT are interactive, and the trends in this sphere are fascinated as we will discover below.
Moreover, connection, disconnection, and managing the tariff plan in the case of OTT can be done online in a few clicks and without any problems.
In this case, the client does not sign a paper contract, and there is no need to visit the company. To connect to this modern tool, one has to fill out a web form. The payment can be also made online linking a bank card to the account.
The same story is with the cancellation of this service. If for some reason, you do not want it anymore, just stop making payments or cancel it on the website.
Moreover, there are even benefits for the creators of the content, namely:
- The protection of the content via OTT is better.
- Views can be monetized easily.
- Growing audience of subscribers is guaranteed.
No wonder such technology becomes more and more popular and continues to change and provide up-to-date features to its users.
Main Tendencies
This niche is definitely not going to slow down any time soon, so we present to you the top 10 trends that will make the future of OTT.
- The industry will expand. A relatively short time has proved that it was enough for the OTT sphere to develop and take over the media market. It is estimated that by the end of 2027, its worth will be over $1 trillion, compared to nearly $122 billion in 2019.
- Plurality of choice. Since the launch of Netflix in 2007 (we mean its streaming service) and its boom in the 2010s, the number of alternatives has grown significantly. HBO Max, Disney+, and AppleTV+ are just to name a few. This market will develop as new players come into the game, e.g. companies streaming sports events.
- Subscription issues. Having a lot of options sounds good unless sometimes, you feel annoyed and puzzled: what to watch, what platform to use, etc. Most OTT giants use subscriptions as a pass to the media world. This, combined with the bunch of platforms, creates frustration feeling among users. This calls for the need for new methods. Even now, the tendency is moving towards the pay-per-view option instead of a subscription.
- 5G boom. New cell technology not only changes the quality of mobile connections but introduces a better and much more reliable Internet speed. Tests have shown that its speed is 100x faster than a 4G (LTE) connection. It means access to your favorite shows and programs everywhere and at any time.
- VR technologies. The increased Internet speed and a gradual decrease in VR tech prices will be a catalyst for a totally new OTT niche. Live streaming platforms are expected to focus on creating enhanced VR products, thereby achieving a new level of immersion.
- Content fragmentation. This strategy is based on niche interest analysis, bringing the right type of content to a particular viewer’s stratum. This will lead to different platforms that will be providing just a particular kind of content.
- CTV’s growing popularity. It is assumed that more people will use their smart TVs, gaming consoles, or specific devices for watching OTT content.
- Localization. This trend is based on the creator’s desire to share their product with the whole world and make it understandable and easy to consume in every location. Live captions, subtitles, and professional dubbing are the most popular methods today. However, with advances in AI, new ways of localizing content are yet to be seen.
- More original content. The competition between major OTT players will lead to more original content creation as they will fight for the audience’s attention and views.
- Co-viewing. The pandemic showed the importance of socializing. As of today, there are a few successful apps that provide the co-viewing experience. So, we expect that this feature will be a must-have for every big platform in the future.
Remember that trends are constantly changing, so it’s important to have the newest info. Use the newly-obtained data wisely and keep yourself updated!