The rise of Over-the-Top (OTT) players has put streaming services in the spotlight. According to Statista, the global market for video content services is expected to reach a value of almost $200 billion by 2021. The OTT market segment recorded revenues of more than $50 billion in 2018, which is a massive increase from just $35 billion in 2017. This rapid growth can be attributed to the ease with which people can access these services. Nowadays, users have great flexibility and access when it comes to choosing what they want to watch and where they want to watch it. Read on to know more about the OTT industry and its key trends.
What is Over-the-Top?
Over-the-Top (OTT) refers to a delivery method of media content as opposed to a traditional method of distribution via a cable television or radio transmission. OTT content is available on demand, anytime, anywhere, and through any device. The term OTT is mostly used in the context of video content or internet television services. OTT providers do not require end-users to subscribe to a traditional TV service in order to view their content. Due to the increased demand for digital content, the number of OTT services is on the rise.
Global OTT market forecast
There are several factors that are fuelling the growth of the OTT market. First and foremost, the growing popularity of smartphones and tablets is encouraging users to consume more media and information on the go. Moreover, the availability of high-speed internet connections is paving the way for video content consumption on these devices. These days, users can stream movies and TV shows on their smartphones to kill time on public transportation. And with the advent of 5G networks, it is expected that the penetration of OTT services will increase even further. The increasing adoption of smart home devices is another factor driving the growth of the OTT market. The ability to control devices from a single app and view content on a larger screen has made it even easier to stream content. Additionally, the growing number of cord-cutters is another factor driving the growth of the OTT market. Cord-cutters are those who prefer to watch content through OTT services instead of paying for cable TV. It is expected that the OTT market will continue to grow at a rapid pace over the next few years.
Which streaming platform will be the biggest in 2022?
The battle for the top streaming spot is indefinitely fierce, and the industry is evolving at lightning speed. There is no clear leader in this space, and the top player is bound to change every year as platforms make improvements and add new features. However, if we were to look at the popularity of these services right now, Netflix, YouTube, and Amazon Prime Video are at the top of the list. Netflix is a popular paid subscription service that offers a wide range of content including TV series, documentaries, and movies. YouTube is the world’s largest video-sharing website, and it is the largest streaming platform. Amazon Prime Video is the video-streaming service offered by Amazon. Amazon Prime Video is available as a standalone paid streaming service, or as a part of Amazon Prime membership. Hulu is another popular streaming service that is currently ranked third in the industry.
Streaming Platform Shaping Strategies
There are various strategies that OTT players can adopt to stay in the game. Some of them include adding more content, investing in original content, branching out to new markets, and expanding their user base. OTT players have started partnering with technology players to ensure that they stay relevant in the industry. One of the ways that OTT players can ensure growth is by expanding their user base. Some of the ways to do this include launching a website or app in different languages, developing a mobile-friendly platform, and offering customer support in different languages. Another strategy that OTT players can adopt is by investing in original content. This can help them create a strong brand and set themselves apart from the competition. Additionally, OTT players can add more content to their existing library. This will help them attract more users and encourage them to stay subscribed to their platform.
Biggest challenges for OTT players
One of the biggest challenges for OTT players is to differentiate their service from the competition. While many providers are competing to offer the best content and innovative features, one has to be very careful while doing so. Not only will such actions increase costs, but they will also make it more difficult to compete with other streaming services. Compared to other players in the industry, OTT players are at a disadvantage when it comes to data analytics and content distribution. Due to the highly distributed nature of these companies, they have limited control over their content and how it is distributed. Moreover, they are unable to obtain information about who is watching their content, where they are located, and what device they are using to consume it.
Key Takeaway
The rise of OTT services has created a massive marketplace for media content. This has also given rise to a new breed of online streaming platforms that allow users to enjoy content online. If you are in the business of media content, there has never been a better time to jump on the OTT bandwagon. If you’re a content creator, you can also cash in on the rising popularity of OTT services. If you want to stay ahead of the competition, you should consider launching your content on an OTT platform.
