Rise of OTT and Its Impact on the Entertainment Industry

OTT, also known as over-the-top platforms, has tremendously changed the game of the entertainment industry. The craze among the people for OTT platforms is just unmatchable. On the OTT platform, all the media services are provided to the customers through the internet. It has successfully pushed away the loyal consumers from the cable and satellite TV platforms. The reason behind their popularity is that they offer high-quality content to their subscribers. It is responsible for imparting an amazing level of satisfaction and experience. Apart from delivering video-on-demand, it also offers messaging services, audio streaming, and internet-based voice calling.

OTT Delivery Platforms

It is evident that demand for OTT content has grown rapidly as almost every household has easy access to this platform. To broadcast or live stream the content, the user only needs two things: a fast internet connection and a connected device. There are numerous devices that make delivery of these services effortless.

• Smartphones, Smart TVs (Apple TV, Roku, Amazon Fire TV, NVIDIA etc.) In the absence of a smart TV, one can use Amazon Fire TV Stick, Google Chromecast, Roku App, etc
• Personal computers (PC, laptop)

Topmost Statistics of OTT Platform

• By 2027, the OTT market is expected to grow to $1.039 trillion.
• 65% of the time, the video streaming is done on mobile phones and TV applications instead of browsers.
• The most admired OTT TV device, which had a 37% share of viewing time, was Roku in North America.
• There has been an increase of approx. 115% in OTT streaming from 2020 to 2021.

The revenue generated in the OTT market industry comes from the following;

• Advertising video-on-demand (AVOD) generates revenue of about 51.58%.
• Subscription Video-on-demand (SVOD) produces revenue of 40.16%.
• Transactional video-on-demand (TVOD) generates 5.1% revenue from pay-per-view.
• The Video Downloads have corresponded to about 3.16%.
• The revenue generated by advertisements is nearly 51% of the total OTT market revenue.
• In the US, Netflix is one of the biggest OTT service providers with regard to revenue.
• Android is the most popular mobile operating system with a market share of 72.2%, while iOS corresponds to 26.66%.

Popular OTT Platforms

Netflix: Netflix is the most popular subscription streaming service provider. It allows its subscribers to enjoy the television series and movies at an affordable price. The subscription fees of this platform is really inexpensive in accordance with the variety of plans being offered. Another interesting characteristic is that one can download their favorite shows , series and view them later without the need of an internet connection. The subscription plans are bifurcated into three types:

• Basic
• Standard HD
• Premium Ultra HD

In this way, they are able to cater their services to each income group. It is known for providing fresh content to the audience to keep their interest alive in their application. If you are interested in developing a Netflix clone, then you should hire services from the OTT app development company.

Amazon Prime Video: Amazon Prime video allows television series and films that are produced by Amazon Studios, also known as Amazon Originals. It provides services such as hosting content from other providers, content add-ons, live events related to sports, purchasing services, etc. It is extremely popular due to their incredible movie list, stunning web series, and intriguing short films. The prices are mostly economical, but they have also introduced the Premium Prime Video feature. One can view the desired content offline with the help of features like mobile downloads, High Dynamic Range (HDR), 4K Ultra HD, etc. There are a variety of services available on Prime Video like the latest movies, TV shows, certain classics related to motion pictures and sports.

Disney +: Wholly owned by The Walt Disney Company, it is another in demand streaming service that provides access to TV series as well as movies. It includes programs like National Geographic, Disney, Pixar, Marvel, Star Wars, etc. It allows unlimited downloads for any series or movies on your smart mobile device. It authorizes the subscribers to watch anything on the go and displays the content in 4K ultra HD resolution with Dolby Atmos sound. This presents several options to upgrade your subscription and can be bundled up with other streaming platforms. The Disney+ costs $7.99/month or $79.99/year for a complete ad-free and unlimited streaming approach.

Sling TV: Sling TV was launched in 2015 and has successfully garnered about 2.56 million subscribers by the end of 2021. The streaming service platform allows the users to watch several live TV channels. Also, it provides the subscribers with full access to the on-demand content at an affordable price. Sling TV has incorporated a lot of channels like E!, NBC, CNN, ESPN, BBC America, Comedy Central, etc. There is an option to record the live TV in case the user is not able to view their favorite show. This OTT platform has definitely hit the right chords in garnering customers’ attention and appreciation.

Significance of OTT Platform

Wider Reach: The use of smartphones and innovative TV platforms has grown rapidly. It is expected to break its previous records in terms of global mobile data traffic. People are now willing to view content on their smartphone devices and smart TV screens. The availability of devices to every individual has captivated a larger audience which results in tremendous reach.

Incredible available content: The streaming services platform has the upper hand over the typical cable services providers. The previous cable packages used to offer typical movies and shows. The concept was rather redundant and unwanted. But with these superb platforms, one can avail extremely fresh content, be it for the shows, documentaries, TV shows, etc. Everything is available at affordable pricing. The only thing that one requires is an authentic internet connection.

Compatibility: In the case of the conventional telecast, a TV set is required to view your favorite shows. But in the case of these stunning OTT platforms, just a wifi or data connection is required. Just download the application, get yourself registered, pay for the package, and you are good to go. There is also the option of sharing the account among various devices.

Steps to Build an OTT App Development Company

Select the niche: Whenever one wants to start any business, the best thing is to be niche specific. Now in the case of the OTT platform, there are several areas like complete entertainment, animations/cartoons, sports, or a mix of all of them. The OTT video streaming platform possesses a much wider notion. So, a deep understanding of this industry is required at all levels. One needs to be sure what audience needs to be targeted.

Business model selection: For OTT platform development, it is necessary to pick out the best business model that suits your budget. There are three types of business models that are illustrated as follows:

• Advertising-based: This model allows the users to download videos that are free of cost. Now, viewing anything for free will enable the viewers to see ads that cause an interruption. This is known as the Advertising-based on-demand model.
• Subscription video-based: This model allows subscribers to pay either annually or monthly for the software in exchange for the video. This is known as SVOD, i.e., subscription video-on-demand model. It keeps the users busy meanwhile provides the owners with various ways to increase sales.
• Transactional-based: Also known as TVOD (Transactional video-on-demand model, it allows the users to pay for discrete content by employing a pay-per-view model. This model is less common as compared to SVOD and AVOD.

All the above business models have slightly different budgets, so choose the one that suits your business idea and criteria.

Create your website: On fulfilling the above points, the essential thing is to build a website. When customers need to view the source of video material, they will definitely want to visit the website. Nearly 39% of consumers prefer viewing content on the web browser. Moreover, it helps in acquiring top ranking, easy transactions, and garners confidence among the users. It is better to develop a website prior to the application. Sometimes, the application gets crashed; hence, in that case, the website provides an uncomplicated and straightforward experience.

Create a tech stack decision: The important thing to consider is to make the selection based on the latest technologies. There are numerous software, resources, and third-party platforms that are readily available to build OTT applications. Much attention to detail is required while researching for the platforms so that they charge you fairly. Some enterprises utilize the third-party application software to scale up and accelerate their production phase. After that the MVP version of the developed app is made ready for deployment. Here is a list of the tech stack that is used for making an app like Netflix.

• Programming languages: JavaScript, Python, Kotlin, Swift
• Cloud services and Database: Amazon EC2, Oracle, MySQL
• Third-party APIs: Wowza, AWS, Web RTC, Socket.IO
• Frameworks: WinJS, NodeJS,React
• Utilities: Falcor, Urban Airship, Amazon SES

Build an application for an OTT app development company: After following the above steps, implement your ideas into reality by hiring the best mobile app developers. While developing an app, certain features are vital to persuade the customers and create an influence in the market.

Fundamental Features of the OTT Platform

• Audience Analytics: As the name suggests, it develops a deeper understanding of the potential customers. It helps in framing a marketing strategy that is helpful in gaining customer viewership. The owner gets to view the insights regarding the performance of their platform. The insights describe the preferences, user behavior, run time, subscription patterns, ratings, etc.
• Multilingual support: Various global languages are added to this platform to make it reach across the world. It is very crucial to make the content available for a larger section of people with multiple language choices.
• Payment gateway incorporation: The payment gateway is an essential feature of the online platform. A very secure gateway enables swift and trouble-free payment processing. A reliable payment mode is integrated, and the entire transaction takes place with the help of e-wallets, credit cards, debit cards, bank transfers, etc.
• Watchlist: This feature helps the users to include their favorite TV shows, movies, or videos they would want to watch later on. By using the custom OTT solution, the alerting characteristic notifies the users every time regarding their watch list.

How are OTT Platforms Shifting the Entertainment Industry In the US?

The evolution of OTT platforms has taken the entertainment industry by storm. Its popularity has broken enormous trends and optimized digital connectivity. There is absolutely no restriction in terms of accessing any type of content. The quality of content in regular broadcasting through cables and DTH services was very repetitive and mundane. Whereas on the other hand, the OTT platforms are creating surplus content in multiple languages. The contributing factor toward the success of the OTT entertainment platform is to be the leader in the number game. Also, the content is available anytime, anywhere, and on any device. Apart from this, privacy plays an important role; that’s why these services are the hot favorite of subscribers. The OTT app development has successfully put a distinct outlook in people’s minds. Audience have wholeheartedly accepted the online content, which has led to enormous revenue generation by the OTT platform owners.

Final Words:

The OTT industry is set to revolutionize the entertainment sector. Things have completely changed recently, thanks to OTT platform development companies that have put forward amazing opportunities to connect people. This is done by initiating the unheard stories and making them available to the people. The content created has reached beyond the communities and larger fractions, and this will only make it a thriving business.