OTT or Over-the-Top is the modern way of consuming content for entertainment. This model allows the delivery of video and audio content via the internet.
The utilization of OTT removes the requirement of using traditional linear TV services. These days, audiences have plenty of streaming platforms available as options to watch OTT videos. Channels like Netflix, Hulu, Amazon Prime, and others have revolutionized the way people acquire entertainment.
Traditional broadcasting is being replaced by new and advanced OTT streaming services. This has increased the number of cord-cutters, who switch to OTT by unsubscribing their cable services.
Reasons why OTT channels are preferred nowadays
Most of the users of OTT are Generation Z and millennials. This demographic is tech-savvy, so they prefer utilizing their smartphones, tablets, laptops and other gadgets to access the content. OTT industry allows that, which has attracted this generation to subscribe to multiple streaming services as per their preference.
Millions of users are shifting from cable to OTT. This has also started attracting more players for channel creation and launching their own streaming service with a suitable monetization model.
Here are the major factors that have attracted more consumers and business players towards this industry:
- Unlimited collection of streaming content in video and audio categories.
- Affordable content, flexible payment methods such as freemium, subscription and pay-as-you-go.
- Content delivery is possible over a wide range of devices like tablets, smartphones, smart TVs, desktops, set-top boxes, and wearable devices as well.
- Easy to subscribe and unsubscribe for audiences.
- Ability to watch original digital content launched by OTT streaming platforms.
- Consumers can watch whatever they want, whenever they want and however they want without waiting for a movie or show to come on air.
Essential components required to set up an OTT channel
- Content Delivery Network or CDN
The delivery of video content to all users depends on a web server network. This network is called a CDN or Content Delivery Network.
- Content Management System or CMS
The usage of a CMS is essential to smoothly manage and streamline multiple workflows. Streaming service providers utilize CMS solutions to manage different segments of users, payment gateways, subscriptions, syndication, content publications and different monetization models such as ads, transaction and subscription.
- Digital Rights Management or DRM
DRM allows a systematic structure for digital licensing, so that your content can stay protected from piracy. The management of digital rights involves the assurance of encrypted storage and transmission of content. This allows content to reach and become accessible to authorized users only.
Recommendation and analytics
For an OTT platform, an engine to acquire analytics is extremely important to understand customer behaviour in depth.
Exceptional role played by data in running OTT services
In the diverse industry of OTT, data plays the biggest role in managing a business. Data-based decisions define the success of content delivery, user experience and satisfaction of customers regarding the type and quality of content they get to consume.
Seems like if you want to launch your OTT channel, the market has all the opportunities available!