OTT means: OVER THE TOP (SERVICES)

What is OTT? 

OTT is an acronym for “Over the Top”. It is a method of streaming services and content in the form of video over the internet. With the option of OTT, it is easy to bypass the normal means of transmitting services. The traditional means of delivering via linear distribution or cable is more expensive than using OTT. 

Services delivered under OTT are delivered “over-the-top” of other platforms through the internet. As a result of this, users can easily subscribe to the services of these platforms over the internet. Some of the popular platforms offering this kind of service include Spotify and Netflix among others. The cable provider does not have control over what the end-users can watch or consume.

OTT involves making videos and streaming services available to viewers by sending the media through the internet. The internet today is a global village and it has the potency of reaching a large audience across the globe. Hence, putting your video descriptions on the internet will make it faster and easier to reach your target audience. It will also enable you to reach a large audience at a go. 

With the internet, a lot can be done in terms of advertising and marketing. This is why the option of OTT is an efficient and effective way of uploading video adverts and marketing content to reach end-users or prospective customers or clients. 

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Different Angles of OTT

You can define OTT in two different ways depending on the partners involved in the advertising, measuring, and delivery streams. The method in which the advertising inventory is measured or monitored depends on the form or kind of OTT involved in the supply chain. 

  • OTT to Content Providers: OTT to content providers refer to users who have access to OTT contents from any device such as mobile phones, tablets, or desktop. 
  • Another angle is based on the platforms through which users access the contents. This may be through Apple TV, gaming platforms, Roku, Amazon Fire, and Chromecast among others. 

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How Does OTT Work?

OTT is an option that does not make use of traditional distribution channels like cable television providers and mobile telecommunication networks. It offers streaming services as a standalone product. It is offered via the internet. 

For OTT to work perfectly, the video content or marketing illustrations describing products and services are uploaded on the internet via a high-speed internet connection. These videos are made available to end-users via an app or by providing them with a log-in to view these contents. The fact that these videos or illustrations are available on the internet makes it easy for your target audience to access the contents. 

With OTT, subscribers have direct access to content via the internet, unlike in the traditional methods where contents are available to the audience by subscribing to cable TV. The cable TV provider is responsible for transmission to viewers while for OTT the content is uploaded directly on the internet for viewers. The viewers gain access to the video contents by registering on your website or by downloading your app. 

OTT contents can be viewed on several devices that may include mobile devices, computers, or on designated websites and platforms for doing so. 

Monetary Rewards from OTT Services

Monetary rewards from OTT services are generated through paid subscriptions by the users. However, some get monetary rewards through advertising or in-app purchases. 

OTT Devices

Devices excluding laptop, mobile, or desktop and are used to view or have access to OTT contents are called OTT devices. Examples of devices that can be regarded as OTT devices are PlayStation, Amazon Firesticks, Xbox, Apple TVs, Smart TVs, and Chromecast, and other streaming devices. 

Video advertising is the most common in OTT Channels. Other advertising content can also be displayed on OTT devices and in OTT channels. 

OTT includes the following;

  • Linear OTT Video: This includes end-users who enjoy the services of content providers by subscribing monthly or for a certain period. The content stream is delivered over the internet for users in this category. Examples in this category include DirecTV, Sling TV, PlayStation Vue, YouTube, and Hulu among others. 
  • Over-the-top (OTT) Videos Users: This category includes users who bypass the traditional content delivery channels to watch video content on websites and apps using the internet. Examples in this category include Amazon Video, Netflix, SlingTV, HBO Now, and YouTube Red. 
  • Internet Protocol TV (IPTV) and Connected TV Users: This includes end-users who are connected to the internet through the use of in-built internet connectivity using TV sets. Other devices that can be used for this type of connectivity include set-top box (STB) devices like Roku, Apple TV, Google Chromecast, gaming consoles, or Blue-ray players. 
  • Advertising-based video-on-demand (AVOD): This is a platform that allows users to watch content for free. The content is then monetized later via video advertising and returns come in based on the traffic. 
  • Transactional Based video-on-demand: This is the service rendered to categorized individuals who wish to have access to selected content through a purchase model known as Pay-per-view (PPV). 
  • Subscription OTT: You can as well call this form of OTT Subscription Video-on-demand (SVOD). These users who enjoy this type of service make subscription payments so that they can stream content on the internet. 

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What is OTT Marketing

Most OTT services run on advertisements while many operate based on subscription payment. Some also operate on tiered packages where subscribers pay for ad-free services. OTT marketing is similar to how legacy media advertising operates but it is still delivered on various OTT platforms via streaming media. 

OTT marketing set-ups consists of two main sides; the service side and the client-side. 

Service Side

The services include the display of ads and as such, it is difficult to block ads while streaming. These ads are seamlessly included in media streaming. The server side is not very common because it is technically difficult to set it up. 

Client-Side

In this case, the ads are loaded and displayed before the video contents start showing or streaming. 

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The Importance of OTT

OTT offers a huge amount of returns as far as advertising and marketing are concerned. As a result of the potential gains involved, a lot of businesses now make use of OTT as it allows them to reach a large audience at a very low cost. 

Marketers have diverse ad inventory options with OTT. It can be difficult to measure impact with traditional content marketing tools. However, with OTT, marketers can easily measure impact by viewing personalized ads and tracking click-through rates. This allows them to leverage on the measurement so that they can quantify the impact. 

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Advantages of OTT

Netflix today has several subscribers across the globe and this is due to the ease of access to OTT content on the platform. 

We will take a look at some of the advantages of OTT.

  • Compatible With Different Devices: With your subscription to OTT content, you can easily access content from all your devices, unlike cable TV subscriptions where you need a TV. Once you sign up you can access or stream from a gaming console, your mobile device, desktop, or Television. 
  • Original Contents: OTT providers strive to get exclusive rights to stream certain televised programs or series on their platform. While some create their original content for their viewers. This makes them a preferred choice to other channels. 
  • Affordability: It is easier for OTT providers to offer high-value content to their subscribers at an affordable rate. This is because they will pay less to an OTT provider than subscribe to the common cable packages. This in a way enables them to have more subscribers and at the same time generate more revenues. 

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Delivery of OTT Contents

OTT eliminates the need for a third-party delivery system since it operates on an internet-based delivery system. Hence, once the end-users or subscribers have internet access and a compliant device, then they can stream and watch content. 

The following are some of the delivery devices that are compatible with OTT delivery;

  • Personal Computers: Most computers allow you to view content through desktop apps or browsers on the computer. As long as there is an internet connection on the computer, you can watch and stream content. 
  • Digital Media Players: OTT content can also be viewed on third-party devices such as Apple TV. Also, the latest gaming consoles allow their users to run OTT apps. 
  • Mobile Devices: Tablets and smartphone users can download OTT apps from the play store and they can enjoy streaming afterward. 
  • Smart Television: Modern television sets now allow users to download OTT apps or some of them come with in-built OTT apps that are pre-installed. 

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Types of Contents Suitable for OTT

Aside from the fact that OTT is more about video-on-demand, it is also about a wide range of other web-based content. It is possible to have video-based content, audio content, instant messaging, and voice calling functions. 

  • Audio: It is possible to stream audio content, examples of this include online streaming radio stations and podcasts. 
  • Video: Video streaming online is the most common OTT solution available. This allows users to watch movies, streaming of live video events, or past video events archived on the platform. Examples of video content media include YouTube, Netflix, and other paid online streaming platforms. 
  • Voice Over Internet Protocol (VOIP): This category includes Voice calling platforms that enable calls over the internet. Examples of OTT solutions in this category are WeChat, Skype, Telegram, and WhatsApp among others. 
  • Messaging: These are platforms such as Facebook, WhatsApp, Skype, Telegram that allow users to send instant messaging to friends and families over the internet. This type of messaging bypasses mobile networks messages known as SMS. These features are apps downloaded on mobile and desktop devices to enhance instant messages across the globe. 

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OTT Solutions Versus Traditional Media Delivery

Although OTT solutions are becoming popular in terms of usage and adoption, traditional media delivery is still in use. Most OTT services revolve around “cord-cutting”. Cord Cutting is a system that bypasses or cuts off phone or TV subscriptions to focus on web-based solutions. 

With the growing acceptance of OTT solutions, it is important to note that it is still susceptible to changes. Hence, the reason why these platforms provide updates from time to time to accommodate the prevailing trends. These changes from OTT platforms may result from the need to stay relevant in the face of competition from other rival OTT service providers. 

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Competition Among OTT Solutions Providers

Due to the many benefits and features that come with OTT solutions, many of these platforms are diversifying. This diversification brings about different changes to keep up with current trends. As long as there is competition among these OTT solution providers there is likely to be modifications to their services so that they can serve their users better. 

One of the major challenges end-users are facing is subscribing to different channels. With this challenge, users will most likely streamline their choice of subscription to OTT solutions that best serve their needs. 

The need to stay afloat and remain relevant for these platforms has seen them re-invent themselves to cater to the needs of their subscribers. Hence, they need to be on top of their game to waive away competition from other rival platforms. 

Below are some of the platforms that have had to adapt to new trends in the OTT service;

  • For instance, Disney launched Disney+ in 2019 to start its own branded video streaming platform.
  • HBO isn’t left out as well as they recently obtained the license in some selected countries to stream content such as Game of Throne and some other series. 
  • In the same vein, Amazon Prime also developed its programming to offer services similar to that of Netflix. 

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Summary

It is important to note that OTT services will continue to be in high demand especially with the fact that we are in a media age. A media era where people want to have access to online content on the go rather than staying put in front of a TV. 

As a result of this TV stations now have features that enable their subscribers to stream and watch content on the go. It is the new era that we are and for businesses to thrive, the use of OTT platforms will go a long way to ensure they can easily reach their target audience at a very low cost.