Over the top (OTT) devices and services have changed the way we consume content. So much so, that OTT streaming devices are now known to be the fourth most common in-home access point to the Internet, after desktops, smartphones, and tablets.
Major media brands now have the benefit of using OTT services to target viewers at a person-level, going beyond household-level. Platforms such as Amazon Fire, Amazon Alexa/Echo, Apple TV, and Roku are some of the most not able examples of OTT delivery systems that offer consumers a widening range of channels.
The Basics of OTT
OTT is a media distribution service that delivers TV and film content such as audio/video, text, VoIP (Voice over Internet Protocol), and other media via the Internet without user subscription to satellite pay-TV or cable service.The reason why OTT services are so compelling is that they offer cheap, flexible, and one of the best viewing experiences in the field.
Major business models of OTT services are Subscription Video on Demand (SVOD), Advertising VOD (AVOD), and Transactional VOD (TVOD).
- SVOD
It is a type of service wherein the user can gain access to services through monthly/yearly subscriptions. The major benefit of these services is that the user can subscribe as well as unsubscribe at any point of time. The best example of SVOD services would be Netflix.
- AVOD
AVOD is a free yet least explored OTT service. In this, the user can gain access in exchange for watching all the displayed ads, instead of paying money. An example of AVOD can be YouTube.
- TVOD
TVOD services generally do not charge anything for creating a user profile or for signing up; instead, users will only pay based on the content they watch. These services offer attractive packages on select content to retain customers. They have been in the industry for a long time, but only through set top boxes (STBs) and not as a complete OTT service.
Demand for Best-quality Picture
Right from the start, the demand for OTT devices and services has grown much faster than expected, thanks to the increased availability of 4k (Ultra HD) movies and TV programs. To cater to the demand for better and higher-quality videos and pictures, the adoption of 4k set-top boxes was once the rage. However, users in this digital era expect quick access to these videos in TV-like visuals on devices of their choice, mostly smartphones, tablets, or other connected devices. Thus, companies in this industry are constantly innovating new technologies to meet changing consumer needs.
What’s New in OTT Devices and Services?
- comScore OTT Intelligence: A Breakthrough Service Measuring OTT Viewing on TVs
comScore, Inc. recently presented comScore OTT Intelligence, a syndicated service to measure OTT content viewing on TVsin the U.S. household. This service is based on their ground breaking research platform called Total Home Panel, which measures user behavior across home network-connected devices.
- Sports Illustrated (SI) Network by Time, Inc.
Another innovation in the field is the newly launched SVOD by Time, Inc. called SI Network. This new network will offera mix of documentaries, talk shows, and narrative programs under the tagline “Because you love sports. ”It will offer 130 hours of on-demand viewing and will also include original documentaries and insights from key SI reporters who cover a wide array of sports, the company said.
Increasing Affordability of OTT Devices and Services
A recent study by Grand View Research, Inc. finds that the value of the global OTT devices and services market may cross USD 165 billion by 2025. Growing popularity of OTT content due to increased affordability and trend of offering personalized user experience are key factors driving its adoption. Growing user reliance on mobile devices like smartphones and tablets and rapidly evolving consumer electronics like smart TVs will also have a major impact on the up take of OTT devices and services
According to industry experts, OTT will be a lot like conventional TV; only related components such as user experience/interface and content discovery will keep evolving. The industry still has a lot to look forward to over the coming years as TV consumption keeps on changing. Advertisers or media companies will keep innovating technologies and products to stay in the race.
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