INTRODUCTION
OTT refers to the delivery of audio, video, or other media over the Internet. In broadcasting and technology business, it is known as over-the-top content or OTT. In other words, OTT is any media over the Internet.
OTT does not require an operator of multiple cable or direct-broadcast satellite television systems (so-called multiple-system operators) to control or distribute the content. In simple words, the traditional cable or receiver does not deliver the media.
Nowadays, the OTT delivery has become quite simple because of the availability of the applications. Anybody with an app budget can build an app. Then, they can deliver media such as video, audio, music, messages, and so on over-the-top.
OTT content is delivered via the Internet. And it is necessary to provide the media efficiently. For that, you can use a content delivery network (CDN). Either, you are going to be delivering on-demand videos that are loaded on to a content delivery network. Or, you are going to be providing live stream into a CDN entry point. And from that, the CDN would deliver it to a set-up box app for consumption by the viewer.
OTT TV AND VIDEO REVENUE WORLDWIDE
OTT is a worldwide growing service. Both buyers and sellers are enjoying it in every part of the world. Likewise, the revenue generation is also increasing. Statista surveyed on this topic and published a report recently.
According to Statista, the revenue in the United States grew from 22.9 billion U.S. dollars in 2017 to 28.789 billion U.S. dollars in 2018. It is expected to reach almost 48 billion U.S. dollars in 2023.
The United States and China are the fastest-growing markets in OTT. Other countries with large OTT markets include Germany, Japan, and the United Kingdom.
| Countries | Revenue in 2017 (in billion U.S. dollars) | Revenue in 2018 (in billion U.S. dollars) | Expected revenue in 2023 (in billion U.S. dollars) |
| The United States | 22.9 | 28.789 | 47.791 |
| China | 8.785 | 12.162 | 25.967 |
| The United Kingdom | 2.978 | 3.717 | 6.797 |
| Japan | 2.569 | 2.914 | 5.339 |
| Germany | 1.644 | 2.047 | 3.815 |
WHAT DOES OTT INCLUDE?
Some over-the-top (OTT) users with examples are:
- Over-the-top (OTT) video viewers
Over-the-to (OTT) video viewers are those people who watch videos through any app or website. The app or website provides streaming video content. Also, it bypasses traditional distribution. For instance, HBO Now, Hulu, Netflix, Amazon Video, YouTube, YouTube Red, SlingTV are few apps and websites providing the service.
- Connected TV (CTV) or Internet Protocol TV (IPTV) users
Connected TV (CTV) or Internet Protocol TV (IPTV) users are those people who use TV sets connected to the Internet. The TV sets are connected via built-in internet connectivity (Smart TV). Or, they are connected via other devices with functionality such as set-top box (STB) devices.
Examples include Apple TV, Google Chromecast, Amazon Fire, Roku, Blu-ray players, or gaming consoles.
- Linear OTT video service users
Linear OTT video service users are those people who subscribe to a service. The service delivers live TV channel bundles over the Internet for a monthly subscription. For instance, Sling TV, DirectTV Now, Hulu with Live TV, YouTube TV, and PlayStation Vue provide such service.
Common sub-categories of over-the-top (OTT) include:
- Advertising-based video-on-demand (AVOD)
In AVOD, users access free-to-watch content. Then, it is monetized through video advertising.
- Subscription video-on-demand (SVOD) or Subscription OTT
In SVOD, users should have a paid subscription access. Then, they can watch streaming video content.
- Transactional-based video-on-demand (TVOD)
In TVOD, users should pay to access certain content through a pay-per-view (PPV) purchase model.
OTT DATA AND TRENDS
In 2019, the OTT market doubled or more in almost every aspect. The usage of streaming video services is about to explode. The transition from a traditional TV to a world where online video platforms rule the land happened soon.
To make the optimum use of the OTT trends, you can follow effective decision making. Some OTT data and trends are:
- Apps can grow your audience
According to Livestream, over 50% of subscribers watch videos on apps. You can refer to this as the Netflix effect. Users want the content to be available on every platform and device. Introduce apps to your marketing and distribution strategy. It can grow your audience by 50% or more. Also, it saves time and energy.
| Platforms and devices | Percentage of subscribers |
| Web | 44% |
| iOS | 31% |
| Android | 11% |
| Roku | 10% |
| tvOS | 4% |
- Free trials
Free trials are great marketing tools. It attracts customers. Also, customers can find what your service has to offer.
| Platforms and devices | Percentage of people who initially signed up for a free trial and later became paying OTT users |
| Web | 68.4% |
| iOS | 69.6% |
| Android | 62.7% |
| Roku | 69.4% |
| Android TV | 64.7% |
- Customers require mobile access, sooner or later
In the survey of Livestream, 73,390 customers subscribed through a web browser. 75% of them switched to their phones. Subscribers are going beyond traditional desktop browsers. They feel more comforting to watch videos on their phones.
| Devices and platforms | Percentage of users in signup platform | Percentage of users in viewing platform |
| Android TV | 0.4% | – |
| tvOS | 1.87% | – |
| Roku | 2.82% | 2.43% |
| Android | 5.69% | 19.87% |
| iOS | 13.81% | – |
| Web | 75.4% | 41.21% |
| AppleTV | – | 1.21% |
| iPad | – | 3.31% |
| iPhone | – | 31.88% |
