OTT refers to Over-the-top, which means providing movies and TV content through the Internet, without traditional cable or satellite TV subscriptions. It is a revolutionized way of entertainment and unfolding endless media streaming opportunities for users. Netflix, Amazon Prime, Hulu are some of the significant OTT applications distributing unmatched media streaming experiences to their millions of users. These OTT applications have bypassed cable and satellite TV service providers that conventionally act as the controller of media contents.
According to the latest reports, nearly 765 million people across the world are using OTT videos at least once per month. This represents more than 10% of the global population and more than 21% of digital video viewers worldwide. The comprehensive subscription of the OTT market is also expected to grow by 24% in 2020.
Easy access to the Internet, affordable services, faster Internet, and carve of watching the latest media have contributed to the success of OTT applications. There has been a massive demand for OTT applications development, and businesses are banking on aggressive strategies to grow through these modern media streaming platforms.
(Source: https://medium.com/canal-tech/how-video-streaming-works-on-the-web-an-introduction-7919739f7e1)
Although OTT and videos are tangled, they are not the same thing. OTT is just the different channel from which the video content is delivered to the end-users. Here are the detailed clarifications of video contents, OTT contents, and OTT devices:
Videos Contents: Video contents can be viewed on any device, including mobile phones, desktop, television, OTT devices, and many more.
OTT contents: OTT contents come from OTT content providers like Netflix, Sling TV, Amazon Prime, and others. The OTT contents can be viewed from multiple devices by multiple users at the same time.
OTT devices: OTT devices can be any device including smartphones, smart TVs, Apple TV, Amazon Firestick, Chromecast, Xbox, PlayStation, desktop, laptop, tablet, which is used to view OTT contents.
(Source: https://www.emarketer.com/content/emarketer-releases-new-worldwide-ott-figures)
Necessities of OTT platforms
As stated above, more than 10% of the global population loves to consume OTT content; it is clear that the needs of OTT are essential shortly. Here are just a few other reasons why it is more appealing than the conventional mode of media alternatives.
As stated above, more than 10% of the global population loves to consume OTT content; it is clear that the needs of OTT are essential shortly. Here are just a few other reasons why it is more appealing than the conventional mode of media alternatives.
● High-value content at affordable cost: When compared to standard cable packages, streaming media through OTT are much more affordable options. The HD subscription of Netflix is $12.99 per month, and non-HD costs $8.99, which is only a fraction of what we pay for the traditional cable subscription.
● Original content: There is a tight race of providing original content between major OTT content providers like Amazon Prime and Netflix. They have distributed some of the award-winning materials, including “Marvelous Mrs. Maisel,” “Roma,” “Period. End of Sentence” and such others.
● Compatibility with multiple devices: For many decades, the television set is mandatory for watching cable TV. Nowadays, you can view OTT contents on various sets of devices. The account holders can enjoy the same OTT experience from different types of devices, including mobile phones, smart TVs, gaming consoles, and others.
(Source: https://www.panopto.com/blog/the-way-video-works-online-has-changed/)
Biggest opportunities in OTT
Increasing competition is the biggest challenge in the OTT applications market. Despite the problem, OTT technology has immense potential. The modern media streaming platforms are now on the rise worldwide. North America represents the primary market with more than 51% adoption rate. Besides, European and Asian markets are also witnessing impressive growth due to international exposure of brands like Amazon Prime and Netflix.
Not just entertainment, the global adoption rates are increasing due to the significant opportunities in non-entertainment markets. A recent survey determined that more than 50% of OTT content viewers browse educational content, generally in the form of instructional streaming platforms. The children’s programming and health-based content are holding immense potentials.
Besides, the OTT platforms also consider the benefits of tiered monetization. While most of the OTT content providers are subscription-based, nearly 20% are also depending on in-app purchases. They cast a wide net when it comes to monetizing their services, and OTT could help them to grow in the coming years.
Characteristics That Define Modern Media Streaming
So, what makes a video streaming protocol modern and trendy? There are similarities across smooth streaming, DASH, HDS, and HLC, which yield the below characteristics of modern streaming media platforms.
- Chunked delivery: Depending on the protocol, the video files can be divided into short multi-second segments ranges from 2 to 10 seconds. Besides, the custom streaming protocols treat videos as monolithic blobs of information.
- Stateless interactions: When users are streaming the video, each request is independent. There is no persistent connection between the user and the origin server for streaming video playback.
- HTTP communication: The OTT contents are sent through WAN across the Internet using the standard HTTP protocol. The modern streaming communications depend on SSL encrypted and HTTP encrypted communications.
- Passive network structure: When the videos are on their way towards the network, the intermediary nodes simplify the routes by modifying the video fragments.
- Internet-intranet symmetry: Modern media streaming open-source like DASH, Smooth, HDS, HLS, and others treat WANS as an open network by default. The corporate and public systems are stateless, passive, and comprised of hardware and software that can provide chunks of videos to their final user-end destinations.
- ABR playback: The videos delivered through modern media platforms are coded at several layers and for multiple quality checks. During the ABR playback, the client’s bandwidth determines the quality level and offers a smooth playback experience.
(Source: Amazon Prime Video)
Open source OTT appplication development platforms
With the rising demand for mobile app development, many open source web video players have emerged to offer an uninterrupted development experience. Here are some of the best examples.
- RX-player: It is configurable with both Smooth streaming content and DASH. It is written in TypeScript.
- Dash.JS: it plays DASH contents and supports a wide array of DASH features. As the name suggests, it is written by the DASH Industrial Forum for the DASH transport protocol.
- HLS.JS: It is a well-reputed HLS player that is used in production by many big brands, including Twitter, Dailymotion, and many others.
- Shaka-player: it is maintained by the tech giant Google and compatible with HLS and DASH.
Is OTT replacing traditional media?
Most of the OTT content service providers are associated with web-based subscriptions, which might be a great alternative to traditional cable and satellite TV subscriptions. While the OTT has gained immense popularity, it does not mean conventional cable networks will disappear entirely. The users are maintaining the cable TV along with the Amazon Prime and Netflix’s subscriptions.
It is also noteworthy that OTT services are relatively new and could undergo significant changes for best practices and better user experience. It may be possible that the OTT platforms could become one bundle, much like our traditional cable packages. Besides, some cable companies have also started their OTT platforms like HBO Go as a part of their premium subscriptions.
Final words
The OTT media streaming services have been with us for years and many more to come. Furthermore, the increased diversification and competition suggests that the online media streaming market is healthy and booming and many opportunities remain untapped. No matter you are enjoying Netflix’s original series, or following a newly emerged OTT platform, the OTT reflects an exciting phase of media.
In case, you are looking to understand OTT’s implications in your business sector in more detail, drop us an email on [email protected] or schedule a free consultation with our team of experts who can guide you through the blockchain implementation in a specific use case.