Streaming Television – Over-the-Top (OTT)
The development of over-the-top (OTT) internet and video streaming services is one of the primary advances in the distribution, transmission as well as consumption of the universal media sport. An over-the-top (OTT) media service, therefore, is a streaming media service provided to the viewers through the internet. Viewers normally watch videos via any application or website providing streaming video content and bypassing outdated distribution. Some of the massive capitalized services like Tencent Video, DAZN, and Amazon Prime Video are intervening in the coverage rights markets and transforming the live sports experiences.
By the year 2019, there were approximately 182 million OTT subscribers in the United States. Currently, there are over 820 million connected video devices and 71 percent of the internet users using OTT services. 47 percent of the household in the United States using Wi-Fi currently own streaming boxes, and averagely, 49 percent of the people using internet operates either online video subscription or network TV application at least once in a week. According to the research carried out by the eMarketer, by the year 2022, 55.1 percent individuals will not be using the traditional pay TV rather OTT services.
Basically, several subscribers are maintaining their subscriptions because of the fact that they enjoy OTT services. Some of the reasons why the format is quite appealing when compared to the traditional alternatives include the high-value content at cheap prices. Streaming services are majorly considered as a cost-effective alternative to traditional cable packages Another reason why OTT format is considered appealing is because of the original content (McAdams, 2019). Netflix and Amazon Prime OTT providers for instance have started producing original content. This is one of the major reasons why subscribers will always find a reason to pay for their subscriptions. Compatibility with several devices is also another reason why the format is appealing. In the past, watching cable televisions required a television set unlike presently. Viewers can now watch OTT content from an extensive range of devices. Account-holders can enjoy the same OTT experience from smart TV, smartphones, and any other device.
The types of content suitable for OTT solutions include a video that is the most widely recognized version of OTT media services. The widespread platforms include subscription platforms such as Netflix, iTunes, and YouTube. Another suitable type is Audio streaming. The popular examples of audio streaming are internet radio stations and podcasts. The third type of content suitable for OTT solutions is messaging. The OTT-based prompt messaging services connect the users unswervingly through internet connections as well as bypassing mobile SMS networks (McAdams, 2019). These services are also available on platforms such as Facebook, WeChat, and Google, among others.
OTT solutions also face challenges such as stiff competition. Netflix for instance is currently not only the OTT game in town. The world is witnessing a new wave of diversifications across the OTT markets, thus creating new opportunities as well as barriers. According to the research, approximately 50% of the OTT subscribers are experiencing subscription fatigue since they are engaging on several platforms (McAdams, 2019). As such, customers are forced to be choosy with their managed subscriptions. This is the only way they will feel relieved with the subscription payments which can be very expensive if they all are subscribed.
Despite the challenges, technology has gigantic potential. Video streaming services are currently on the rise and North America has recorded the most mature market (approximately 51 percent adoption rate) (McAdams, 2019). Apart from the global adoption rate, other major opportunities are also existing in the non-entertainment sectors. The research indicates that several OTT subscribers are currently paying for the educational content which is usually in the form of institutional streaming platforms. This serves a great purpose for the students.
In conclusion, Over-the-top is playing a major role in subscribers. It is important to note that the increased diversification and competition suggests nothing but a healthy and growing market. As such, several opportunities remain untapped. OTT, therefore, represents the future of the media and it will be exciting to be part of it.