How OTT Platforms Are Revolutionizing the Entertainment Industry

How many times has it happened that while flipping through multiple cable channels you just cannot hold to a single show because of the outpour of commercials that go on and on? Think of an alternate scenario when you open Netflix and just within seconds, you start watching and without realizing you are immersed into it for an hour. This seamless entertainment experience is what made OTT (Over-the-Top) platforms so popular. No wonder, OTT now has become synonymous with the contemporary entertainment experience. But OTT means business as well. These platforms are also shaping the way businesses connect with audiences and the way entertainment shows can be monetized. 

Here in this blog, we will explain what OTT means, why it is important, and the varied ways it defines audience engagement with digital media. 

What Does OTT Mean?

The term OTT, short for “over-the-top”, refers to technology and services that deliver digital content directly over the internet to users, bypassing traditional cable or satellite television providers. Instead of relying on a fixed cable connection or broadcast signal, viewers can now access entertainment through internet-connected devices such as smartphones, smart TVs, tablets, laptops, and even gaming consoles.

In the world of mobile marketing, OTT is frequently discussed about video content. Traditionally, people consumed television shows, films, or live events only through a television set that was connected to a cable TV or satellite provider. That was the norm for decades. But times have changed. Now, audiences are no longer restricted to sitting in front of a living room television. Thanks to OTT services, viewers can watch video content on multiple devices, wherever they are, and whenever they want. This flexibility and independence from traditional broadcasting systems is what makes OTT so significant.

Before diving deeper into OTT advertising strategies and how brands can leverage OTT targeting to reach specific audiences, it’s important to fully understand what OTT streaming actually means and the different forms it can take.

What Is OTT Streaming?

At its simplest, OTT streaming refers to any video or audio content delivered and played directly over the internet, without the need for a traditional TV or radio provider. If you’ve ever watched a film on Netflix, listened to a podcast on Spotify, or streamed a live sports match through a mobile app, you’ve engaged with OTT streaming.

There are generally two broad types of OTT streaming models:

Pay-to-Access Streaming: In this model, users pay for the right to access premium content. Many of the most well-known platforms, such as Netflix, Disney+, and Amazon Prime Video, operate this way. These services are typically subscription-based, where viewers pay a monthly or yearly fee for unlimited access to a vast library of content. Some may also offer pay-per-view options, especially for new film releases or exclusive live events.

Free-to-Access Streaming: On the other hand, a number of OTT services provide access to content without requiring a subscription fee. These platforms generate revenue primarily through advertisements. YouTube is the most popular example of this, where users can watch videos for free but encounter ads in between.

Many OTT providers now use a hybrid model, combining both of these approaches. They offer tiered subscription packages where users can either:

• Access content for free with advertisements (ad-supported video on demand, often called AVOD), or
• Pay for an ad-free experience (subscription video on demand, also known as SVOD).

This flexibility gives users more control over how they want to engage with content, whether they prefer to

Let’s Get Into the Basics of OTT

OTT refers to the term Over-the-Top, which is a reference to the sudden and unexpected experience we have in sports. But in terms of technology, the term refers to direct media streaming through the internet without any intermediaries. In that regard, OTT platforms sit on top of the so-called TV networks and cable channels. Some of the most sought-after OTT platforms include the following. 

• Media streaming apps like Netflix, Hulu, Moobi, Amazon Prime Video, Disney+ and many others. 
• Live TV platforms like YouTube TV, Sony, and Sling TV. 
• Social media video apps like TikTok and Instagram Live.

What is the key aspect that differentiates OTT from traditional media channels? Well, it is the liberty of choice and freedom of control enjoyed by the users when using these platforms. Thanks to OTT, users are in control of what media content to watch, when to watch it, and on which device. 

How OTT Technology Works? 

At the very elementary level, OTT is empowered by internet connectivity to stream media content directly to users’ devices. Let’s break this down further to understand how the technology works here. 

• Independent content creators, commercial producers, and business brands by using studios, outdoor shooting units, editing rooms, and digital media experts produce video content like movies, shows, commercial ads, sponsored content, event live streams, etc. 
• The second step is to host the content through an OTT platform or apps like Netflix or Amazon Prime Video. 
• Users from their device screen hit the play button for a selected video content and then the respective mobile app or platform breaks the content into data packets and delivers them over the internet.
• The devices used by the users such as smartphones or internet-connected TV recognizes and receive the data packets sent by the app’s server in real time and allows smooth streaming.

Where does it differ from media broadcasts through traditional TV? Well, while OTT sends data packets via internet servers connected through CDNs or Content Delivery Networks, traditional TVs rely on broadcast signals or cable networks connecting TVs with transmission centers. Since CDN servers are distributed geographically, they can fetch data packets from nearby servers to deliver to users instantly. This is why using OTT platforms, users can enjoy high-quality 4K movies or high-definition live streaming without buffering or interruptions. 

How OTT Made Viewers Empowered? 

The emergence of OTT refers to a technology-driven paradigm shift in culture. TV networks, thanks to OTTs, no longer can dictate our media and entertainment choices, the time of media consumption, and the devices we prefer. You cannot miss an episode of a show on an OTT platform. You can come back later and watch the whole match even if you had missed live streaming. The actual implications brought by OTT platforms go well beyond convenience. Here we explain. 

• No running to catch a show 

As a viewer, you no longer need to run home to catch an episode of a show you are watching every weekend. You can just watch all the episodes in one elongated sitting on a Sunday.  

• Content is Global and Local 

Thanks to OTT platforms, an American now can become an avid fan of Iranian movies and vice versa. These platforms bringing both local and global content to our devices have made cultural exchange so easy. 

• Personalized Platter 

Intelligent algorithms and analytics engines are taking notes of your preferences and viewing patterns and accordingly suggesting contents that you are most likely to engage with. Thus OTT platforms make sure you always find movies, shows, and videos that you like.  

Key Trends to Shape the Future of OTT

OTT platforms are also evolving with new approaches to content creation, monetization policies, advertising, and integration with new device ecosystems. We cannot help but give attention to these evolutionary milestones to understand the future of OTT. 

• SVOD and AVOD coming close 

Subscription-based (SVOD) OTT platforms like Netflix are also trying to woo users who want free content by embracing ad-supported tiers (AVOD) models.  On the other hand, YouTube Premium is getting popular for not showing ads with a small monthly subscription.

• Interactive Ads for Real-time Shopping 

When watching a video you can just tap on a product shown on the screen and get ads allowing you to order the product instantly. So, while watching a movie you can take a pause make a quick purchase of a product shown in the movie, and resume watching. 

• Free Ad-Supported TV or FAST 

Some channels stream content with ads just like traditional TV media but they still have a growing audience just because they are free. This ad-supported OTT streaming is already getting popular and Samsung TV Plus is a good example. 

• Hyper-Localized Content

Most OTT platforms are trying to hook regional audiences with culture-specific hyper-local content. They are creating the same shows with different regional flavors to make the most out of local-is-global trends.  

• Connected TV and Smart Home Integration 

With the increasing popularity of smart TVs and smart voice assistants, OTT platforms are likely to find the integration with IoT devices natural. The trend is ready to take over the OTT scene in the coming years. 

Ending Notes 

OTT has forever changed the way we consume media content for entertainment. Since it has given us freedom of choice and timing, we no longer can go back to traditional TV watching. Traditional TV channels are learning from OTT content and monetization models. If you are a business and haven’t given enough thought to making your brand visible to OTT viewers, you must reconsider your marketing and outreach strategy. OTT is a reality that no business can shy away from.

Written by Ketan Barad

Ketan Barad is the Co-founder & CTO of EncodeDots, overseeing operations with a strategic mindset and a passion for innovation. With extensive experience in technology and business management, he plays a crucial role in optimizing processes, driving growth, and ensuring the delivery of high-quality solutions. His leadership fosters a culture of excellence, enabling EncodeDots to stay ahead in the ever-evolving digital landscape and deliver exceptional value to clients worldwide.