Do you know what is OTT? If you want to understand the definition of OTT [over the top] platforms in 2022 – 2023, this article will help you.
Table of Contents:
- OTT Platform Meaning
- Benefits of OTT Platform for Customers
- Benefits of OTT Platform For Companies and Marketers
- FAQs About Over The Top (OTT)
- Conclusion: OTT Platform Meaning and Definition
OTT Platform Meaning
“OTT (over-the-top) platforms are those channels where video content is delivered over the internet as per the request and requirements of the subscriber.”
In simple words, OTT means video streaming over the internet.
Please note that this video content can be a live stream of regular channels like BBC news over the internet or may a web series created by the App themselves.
As per the report, The global OTT market size is expected to become a $1039 billion industry by 2027. As per the study made last year, it was valued at $121.61 billion of revenues. this amounts to around 29.4% of compounded growth rate annually.
Benefits of OTT Platform for Customers In 2022 – 2023
OTT platforms are gaining popularity these days. Especially, during the Corona days, when all of us were bound to sit at home due to the lockdown, we all subscribed to a lot of such platforms like Amazon Prime and Netflix.
Here are some key benefits of using Best OTT platforms or apps from a subscriber or customer’s perspective:
1. Choice of Content
This is the biggest benefit of the OTT platform for subscribers. You can choose any of the OTT App as per your own taste and preferences. There are various Apps that provide you News related content or maybe a Sports related content. As a consumer, you can choose any of them as per your own choice.
2. Access Any Time
OTT platforms offer you 24 hours of entertainment. Unlike a normal TV serial which is broadcasted at a fixed time, OTT Apps are available at any point in time as per your own availability.
Every single show which is available on an OTT platform can be accessed any time or any day whenever you wish to watch them.
OTT Apps are cost-effective as you pay only for an App that delivers the content of your choice. A normal Set Top Box subscription will cost you at least 2x as you need to subscribe to a lot of channels that you don’t even see.
4. Creative Content
OTT industry is booming only because they are providing informative and entertaining programs that are available globally. A series that is popular in the USA can be seen in other countries like India. It is worth mentioning India here as it is one of the fastest-growing OTT markets today in the world [ref].
Game of Thrones is a classic example of content that is popular globally and available on the OTT platform.
There is no bar for language also. For example, NetFlix and Amazon Prime will provide you content in English, and other languages like Hindi as well. As the content is delivered over the internet, everyone can subscribe to them.
5. No Fixed Contracts or Commitments
Another benefit of an OTT platform is that you don’t have to make any fixed commitment. It is your choice. In fact, various platforms are providing a 30 days free subscription so that you can check the quality before subscribing to them.
There are a lot of payment options, monthly, quarterly and annually.
Also, the content can be shared with the family if you have apps installed on multiple devices. You may need to pay just a few extra bucks and you can enjoy the content on multiple screens.
So, there are some of the benefits that a subscriber enjoys. Let us now discuss some of the OTT advantages for platforms as well as marketers.
Benefits of OTT Platform For Companies and Marketers
OTT platforms are a win-win situation for subscribers as well as the platforms. Even for marketers, it is a new kind of new media that is worth exploring.
Here are some of the advantages for companies as well as marketing professionals:
1. Affluent and Tech-Savvy Audience
Traditional TV programs are not at all popular between affluent and tech-savvy audiences these days. Especially, young audience that falls in the age bracket of 18 to 25 is shifting towards OTT platforms these days.
These age groups are highly targeted the days by marketers and the best part is that they are highly responsive to this advertising.
2. Easy Analytics
The traditional television industry is based on approximation and surveys. Like TRP which is a kind of sample that defines the popularity of a particular program, nothing concrete is available in terms of analytics.
In the case of OTT, it is far better. Advertisers know what all programs are popular and at what time they are being watched.
As the user information is available with the platforms, other demographics like subscriber location and age group is also available.
All these helps the marketing industry to have more focused advertising approach.
3. Better Targeting Possibilities
As a marketer, you always want a positive ROI. This is only possible when you can narrow down your audience on the basis of preferences, age group, location, and other criteria.
With the traditional IPTV industry, that is not possible. OTT on the other hand is becoming an advertising opportunity that can become one of the best alternatives to social media marketing.
As we discussed in the previous point, you have better data available with OTT platforms and hence, you can define your advertising strategy in a cost-effective way.
4. Non Skippable Advertisements
OTT advertisements are mostly witnessing the growth of Non Skippable strategy by marketers. The subscriber cannot close or skip the advertisement and the ad impression is guaranteed to get better results.
Even if the subscriber will try to shift to another screen, the advertisement on OTT will stop. Isn’t it amazing?
5. Easy To Replicate Digital Ads On OTT
If you are already using any form of digital marketing for your brand, it is very easy to replicate the same strategy and even the creatives with OTT.
The transition from one digital media to another is simple and OTT has that advantage over the traditional Television industry.
FAQs About Over The Top (OTT)
Is Netflix an OTT?
Yes, Netflix is one of the largest video OTT service provider in the world
What are examples of OTT?
Amazon Prime, NetFlix, Dacast, and Vimeo Litestream are some of the best examples of OTT platforms.
Is YouTube an OTT platform?
YouTube is a video streaming platform but slightly different from OTT. YouTube has currently no control over what is being published, as anyone can sign up as a creator and publish self-created content.
OTT on the other hand does not allow creators to signup and publish any sort of content.
However, according to me, YouTube Premium can be considered as a kind of OTT platform.
What is OTT platform and how it works?
OTT platform means a service that provides the content “Over The Top” through the internet. Please note that there is no cable connection or a typical set-top box is required.
OTT works like any video streaming app where content is delivered on any smart device [mobile, smart tv, etc] through the internet. This content is stored on a server that is available online for 24 hours.
Why it is called Ott?
The service is called OTT, aka over the top only because you can watch the content directly on a wireless device through the internet. There is no need for any cable connection or set-top box.
Conclusion: Meaning Of OTT Platforms and Definition
So, OTT by definition means a platform that enables you to watch videos over the top on your mobile or smart tv screens, without any cable connection. You just need a smart device and an internet connection.
You can choose your favorite platform basis the content you prefer to subscribe for. There is no restriction whatsoever with respect to the timing of content delivery. All the videos are available on the platform 24×7 and you can watch them at your ease.
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About Author: Vishesh Gupta
Seasoned Professional with 15 years of experience in Sales and Marketing. Entrepreneur, Consultant and Blogger helping people earn through jobs and blogging. Experienced Hosting Reviewer who likes to collect detailed info about existing players and share it with my audience. Previously worked with leading Banks and Telecom Companies.
I completed my Masters in Management with specialization in Finance and Marketing.
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Important studies about OTT: