If you want to understand how OTT services work, why they have been so successful in recent years and how this concept has enabled the rise of content giants, buckle up! Here’s everything you need to know.
What is OTT (Over-The-Top)?
The OTT service is a way of providing multimedia content over the Internet without a third-party operator controlling the broadcast. The term also applies to audio, video, messaging and voice, although OTT is best known for its use in video and television programming.
To put it simply, OTT relies on a video delivery method where anyone using an internet-connected device (smart TV, computer, tablet, smartphone or game console) can access videos on the public internet. All users need to enjoy a content stream is to pay for an internet service (broadband or mobile data) and a subscription to an OTT service if needed.
Anyone using an internet-connected device can access content anytime, anywhere. Some of the most popular OTT names include YouTube, Netflix, Amazon Prime Video, Disney+ and HBO Max.
How does OTT work?
OTTs are pure streaming content providers. Because they use a free transmission system to deliver video and there is no specific distribution channel like IPTV, OTT provides content only on demand and in unicast form. It is a one-to-one transmission method that serves a single stream to a single connected device or receiver.
In this case, ISPs have no control over video delivery and display, or content copyright. They simply provide the infrastructure through which OTTs deliver content directly to end-user devices. And since the infrastructure and overall costs drop significantly for OTT, their prices tend to be more affordable than IPTV.
But with flexibility and everywhere comes new challenges. One of the inherent challenges of OTT is being able to accommodate a wide range of networks and devices to serve content over the public Internet. OTT performance depends on internet connection speed, available bandwidth and connection speed supported by the end user’s display device. Therefore, picture and sound quality may be affected as the OTT app adapts to network performance to avoid buffering issues. How exactly does this happen? By playing the video file that best adapts to network conditions and screen size each time to avoid data transfer drops.
The benefits of OTT services
Some of these have already been mentioned, but let’s quickly review the essential benefits of OTT services.
Diversity of content
Viewers of traditional pay TV (cable, satellite, etc.) typically lack content variety due to limited catalogs or content package limitations. OTT services, on the other hand, offer a wide range of original and licensed content, including VOD titles, linear TV channels and live streams.
Affordable price
As the overall infrastructure and costs of deploying an OTT service decrease, their prices tend to be more attractive and affordable. They can go down to €5 per month, or even be “free” in the case of advertising-based services. That’s why viewers generally don’t choose one or the other in OTT. They prefer to subscribe to different services to meet their content needs.
Greater freedom for consumers
Consumers like the ability to choose and control their entertainment program. With an OTT service, they can decide exactly what they want to watch, when they want to watch it and on which device. This wider consumer choice leads to greater engagement with content and greater user loyalty.
The future of the OTT service
Knowing that 2021 is the first time OTT has overtaken traditional TV as the primary source for watching TV and movies is a little surprising. We have experienced a change in mentality, where modern consumption is no longer attracted by traditional TV and cable. Which also predicts market experts that the continued growth in this market is far from over.
