Difference Between IPTV and OTT- Everyone Must Know
Globally content consumption has come to be dominated by the ott platforms and top-of-the-line IPTV services. Although both OTT/IPTV platforms are commonly used video streaming options, each has its uniqueness in the manner of delivery of content. This particular difference is what attracts enterprises and businesses since they become available to their customers whether they are IPTV users or OTT users.
OTT & IPTV streaming trends: Market volume for the OTT Video segment is expected to be USD 476.60 billion by 2027 at a growth rate of 11.60% for the same period. IPTV has seen a steady increase in subscribers since 2018 and is likely to have as many as a 1.4million subscribers by 2024(source: Statista)
What is IPTV?
IPTV is the commonly used term for Internet Protocol Television (IPTV) for the delivery of video and audio content using Internet Protocol(IP) which is managed over computer networks that are either LAN or WAN. The advantage of being a manager network is that it is used in multicast streaming, using a single video source for sharing with users on the same network so that bandwidth utilization is optimized.
How does IPTV work?
IPTV is not the same as surfing channels on cable television. Where it differs is the use of IP to deliver the videos which a viewer requests. When a TV program is clicked by the user, the different sources or servers of the video are divided so that they become data packets and can be sent over the internet. The video servers will transmit programs using fiber-optic cables to homes via internet connections for requests to be sent.
What is OTT?
OTT full form is Over-the-top content typically videos that are transmitted to single devices over the internet. OTT platform deliver video content that can be on-demand, live, or over the internet.
How does OTT work?
It is the ideal solution for organizations to share internal video content with employees. Using any device like a tablet or PC or smartphone, the fluctuation levels of network bandwidth are matched using ABR or Adaptive Bit Rate to dynamically switch between parallel streams that have different video quality levels.
IPTV vs. OTT — Pros and Cons
The video streaming industry is evolving by the day and both IPTV and OTT are driving much of the adaptations. Although both work on the same principles and use the internet to deliver their content, both have their own advantages and disadvantages.
Content delivery and network
- OTT uses the public network or the open network to deliver its content. But security and quality are dependent on the internet in use
- IPTV uses WAN and LAN or the closed network ecosystem, which offers smooth content delivery and is independent of the bandwidth of the internet.
Components needed
- OTT does not require any external hardware to operate. They need a dedicated app
- IPTV needs a dedicated set-top box as well as a router.
Quality of the video
- OTT video content is defined by the internet
- IPTV is a smooth and better user experience with video quality and audio
Price
- OTT services are free and may need an add-supported plan
- IPTV is steeply priced at an average cost of USD 15- USD 30 per month
Type of content
- OTT offers free or premium content or hybrid content as well
- IPTV offers exclusive monetization with SVOD
IPTV or OTT? What’s suitable for your service?
A comparison of OTT vs IPTV for every feature shows that OTT has an edge over IPTV on many of them. But the IPTV can hold its own based purely on the quality of the content it delivers and the level of control it offers. At the same time, OTT is cost-effective but IPTV has scalability and better content quality.
Hence, you should choose between OTT and IPTV based on your end needs. If you want to create an OTT platform with global reach, then the OTT platform is your solution. All you need is an OTT app to launch your services.
On the other hand, if you need to tap a niche, local market with high-quality video and audio content that does not buffer, then IPTV is your solution.
Conclusion: IPTV vs OTT
One of the biggest revenue-earning segments is the OTT video advertising segment with a projected market volume of USD $180.40 billion by the close of 2022 (Source: Statista). The average revenue per user (ARPU)for the OTT Video segment is likely to be USD 84.39 by the end of 2022.
For every business, IPTV and OTT have a solution that can help you reach and interact with your target audience. To know more about both these services reach us today!
