You Down with OTT? Yeah, You Know Me.
Confused about OTT and how it relates to video? Read on to grasp the fundamental concepts behind the emerging distribution platform.
THE MEANING OF OTT
“Over the top” (OTT) is a term used by broadcasters and tech businesses to refer to video that is delivered via the Internet as a standalone product. OTT differentiates itself from other streaming experiences like TV Everywhere because it does not require a subscription to a cable or satellite TV provider (aka “pay TV”). The only requirements to consume OTT content are a broadband connection, a subscription to a video streaming service, and a supported device.
THE VODs OF OTT
OTT is essentially a video-on-demand (VOD) platform, in that viewers can decide what they want to watch and when they want to watch it. This is a major departure from traditional pay TV services, where viewers are beholden to a fixed programming schedule. Most OTT services follow one VOD revenue model or another…
THE SCREENS OF OTT
OTT services typically have a multi-screen presence — offering streaming apps that span mobile, tablets, and Internet-connected “smart TVs.” Smart TVs are usually pre-equipped with streaming apps, but they can also be supplemented with network-connected set top devices. Major brands of set tops for OTT content include Roku, Google’s Chromecast, Amazon Fire TV, and Apple TV.
THE APPS OF OTT
Just a few years ago, an OTT app was an enterprise product. But today, that is quickly changing with creation platforms like Uscreen, Vimeo OTT, Maz Digital, Odd Networks, and Zype. OVP providers like Brightcove even offer OTT content packaging and delivery now. These companies simplify the app development process for their customers and enable them to deploy streaming services to various destinations — whether they are an Android or iOS environment, a Chromecast or Roku appliance, and so on.
THE DATA OF OTT
Like with any digital product, it is essential to collect data on OTT content. This information makes it possible to measure success, set goals, and benchmark performance. The following are some measures and dimensions that are highly relevant to the OTT user experience. When analyzed together, they can offer a lot of insight into user behavior and system performance.
THE GROWTH OF OTT
The growth of OTT is adversely affecting pay TV services as more subscribers are “cutting the cord.” In an effort to retain their customers, these companies have resorted to offering vMVPD packages. Subscribers with this type of bundle can receive linear television via an Internet connection rather than a hard-wired cable box. But despite the lighter-weight setup, Business Insider notes that vMPVDs have not combatted the decline in pay TV subscriptions. In fact, they demonstrate year over year losses as well.
THE FUTURE OF OTT
As more and more households “cut the cord,” it will become increasingly necessary for marketers to reach OTT audiences. Many digital marketing tools are already embracing the emerging medium. Nielsen and ComScore have expanded into the OTT space, collecting data points about the platform’s usage in households. And the Adobe Marketing Cloud now supports OTT integrations, allowing marketers to manage and optimize their campaigns across streaming services. OTT also represents a digital convergence of sorts, as the definition is expanding to include any service that can bypass telecommunication companies. This is why messaging platforms like Skype, Viber, and WhatsApp are now considered OTT applications as well.
Thank you for reading! I’m Therese Moriarty, a video and emerging tech consultant based in NYC. This article was originally published here on my wesbite.
