A new revolution of Entertainment
As new technologies and systems start emerging, digital trends keep rising. One of the many such trends is the usage of OTT platform. Content is continuously changing, and the pandemic ensured that this revolution came by quickly. The new digital audio & video content trend is challenging the trillion-dollar industry of satellite broadcasting. It is evident across the world especially in the US where it is estimated the almost 55.1 million people would be switching over to OTT video platforms over traditional television – which is a huge challenge to the currently estimated $570 billion content market value. The major players who are at the pinnacle of this revolution are OTT video giants like Netflix, Amazon, YouTube, Hot star, etc.
How is the current OTT streaming market like?
The current market – believed to be revolutionized by Millennia’s and Generation Z – is flooding the market with highly competitive and artistic content right from Films to series and even documentaries. But Netflix has made huge commentaries and often stirred up the mainstream pot with documentaries like The Game Changers and The Social Dilemma. These OTT streaming services are also spearheading the new age of digital entertainment which creatively uses technology. Also Black Mirror Film – BanderSnatch – made huge noise when it provided the audience with a new method of storytelling. It gave watchers two options to take the story forward, wherein they would have to select one action the character might do, and the plot & outcome of the film would be accordingly. So it had multiple climaxes according to what the audience chose. It is never done before on such a massive scale.
While it certainly does not say much about the fierce question of existence or competition among TV and Digital Content; the pattern suggests that OTT video streaming platforms will likely increase in scale. Business Wire actively states that OTT platform subscriptions may scale up to 915 million subscribers.
On-Demand content is a crucial driver of Change
As smartphones and personal digital systems penetrate individual lifestyles, the convenience to watch a film, pause it, and watch again sometime later is at the disposal of the consumer. It is a fast world where the benefit of comfort overshadows almost everything. Right from retail businesses to visual content, everything is going online and people can choose what they want and most importantly when they want; The D2C nature of these OTT platforms where intermediaries are cut off is the big formula to easily distribute content across the globe.
Has OTT impacted video productions all alike?
Unlike times where Television Studio Productions dominated the entertainment ecosystem; OTT has blurred the line between Traditional Professionals, Pro-Amateurs, and Amateurs. Filmmakers across all levels have now access and opportunities to put their content on OTT platforms as social media have intrinsically linked to these digital ecosystems. Many artists and content producers start on Social Media, gradually making it to big production houses. This industry reached $25 billion in revenue by the year 2016, and from then on, it has only been an ascend. Giant Productions like Disney have actively put interest to create an OTT streaming solution that got positive reception across the world. Even Apple and Warner Media are joining the trend by creating their platforms using a white-label OTT solution; storming the industry with their brand.
OTT Platform to Grab Attention during COVID-19
The world economies had to take drastic measures and severe u-turns from traditional systems when the Pandemic hit. It was unaccounted for but what remains a tragedy – is becoming the key driver towards new ways to consume content. As social distancing became the new norm; buying and consuming trends changed. Forcing everybody inside their homes, it is an excellent opportunity for OTT platforms to grab the attention of the audience. According to a report of Publicis Groupe India; the period between March 1 and 24 saw a 34% increase in OTT content consumption. Until there isn’t a tight solution for COVID-19, these industries must continuously see increased subscriptions.
The new OTT platform entail for consumers and producers
As companies invest in OTT platform development, there are conditions under which the new industry will foster. An increase in the availability and accessibility of smartphones and personal devices is a salient factor for growth. The same was with the Television industry. There is a hint towards the inclusion of VR/AR in future OTT trends for which the existence of such devices in the market should become as easy as purchasing a Smartphone.
How does OTT platform make profits and revenues?
Models like Advertising-supported services, transaction supported services, subscription-supported services; and Digital Multichannel Video Programming Distributors are the main models of revenue generation.
- Advertising-supported service modeled OTT video solution focuses on ad revenues shift towards; these platforms against the expense of print ad spending and more TV ad spending.
- Transaction-supported service focuses on content that can be availed or subscribed for a limited period in the device of the user. For example – YouTube offers to rent movies at a price for 48 hours.
- OTT platform providers can incorporate subscription-supported service which typically involves a monthly-fee; and subscription to a pool of content that constantly requires users to be online. These services can be supported by advertising that interacts with the hyper-engaged audience.
- The DMVPD model follows a replication of service which involves subscribing to a traditional cable bundle in the digital ecosystem. The perfect example of this model would be Sling TV which is an American streaming television service.
Are OTT platform the future?
Investing in OTT app development is the future as trends in consumer buying and selling seems to concentrate on digital systems propelled by devices like smartphones and laptops. OTT service providers are ensuring they match and provide technical robustness with the increasingly; competitive and personalized content platforms. As audiences grow in preferences and size, there equally must be an increase in tailored quality content. It seems like the OTT solution is the single most chief speedboat in the race of the Media & Entertainment revolution.