Over-the-top (OTT) media service

Over-the-top (OTT) media service 

An over-the-top (OTT) media service is a streaming media service offered directly to viewers via the Internet. OTT bypasses cable, broadcast, and satellite television platforms, the companies that traditionally act as a controller or distributor of such content.

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Examples include , Netflix, Prime Video,Hotstar, and YouTube Premium.

OTT (Over the Top) media services which offer direct streaming services to viewers, have been gaining popularity worldwide. The top rank in this field has been held by Netflix and Amazon Prime, which remain popular worldwide. However,In India the scenario is quite different for OTT industry. As per some reports , the Indian streaming platform Hotstar is the most popular OTT platform in India due to the live streaming of IPL and other major cricket matches then 2nd spot is taken by Amazon’s Prime Video for their popular series like mirzapur ,made in heaven etc and 3rd spot is held by sonyliv which mostly offers popular reality tv shows while Netflix ranks 4th and i know webseries like sacred games has increased popularity of netflix in india but still it ranks fourth due to their high pricing as compared to others.

The popularity of some OTT platforms have been increasing with the emerging of some Indian OTT platforms like ALTBALAJI, Voot,ULLU and these are directly giving competition to these major foreign players like netflix and amazon prime due to their Regional content and knowledge about what the Indian audience want to watch and in order to tackle or compete with these Indian OTT platforms.Netflix and Amazon had started to showing original series like Sacred games by Netflix and the family man by amazon prime which have receive overwhelming response and appreciated by the Indian audience

Reason behind increasing number of OTT platforms

The main reason behind so many new OTT platforms coming to the market is the increasing profits generated by such platforms in India.

Indian video OTT service to grow at 21.8% CAGR to reach $1.7 billion by 2023 from $638 million in 2018.

Subscription video on demand to grow at 23.3% CAGR to $1.5 b, 89.4% of overall revenues.

Indian OTT market to overtake South Korea to become the 8th biggest market in the world by 2023.With over 500 million mobiles users,this industy has been growing at the rate of 8% .

Challenges faced by OTT platform in India

These ott platform like netflix and amazon are quite popular outside india But the Indian market is not easy to understand that’s why netflix has suffered failure in india at the starting because they are not giving the relate able and original content to the Indian audience. In India, particularly the youth is tired of seeing repetitive drama and plot of TV soaps and their is a diverse population in India having different taste,different culture,different interest etc,it would become difficult for these ott platform to analyse what type of content produce for the Indian viewers but after analysing it get to know that Indian audience want more organic,more regional and more relate able content,and in the view of these things many OTT platforms are focusing on making original series according to their tastes as well as by providing regional language films also on their respective Apps.

Pricing

Another factor affecting the popularity of these ott platform are its respective pricing policy.Many of us know that netflix has suffered in india due to their pricing policy too .As,the other Indian players offers subscription at the affordable rate through it they manage to increase their market share.Some of them are even providing free content on their platform and due to that netflix has to change its subscription rate to takeover them.Now,Netflix is offering at 199/device through only that they are able to compete with these Indian ott platform and slowly increasing their market share

Popular webseries by different OTT platforms

These ott platforms have been gaining popularity due to some of their webseries which were very much popular among the youth in india and only these webseries have become a source of interest in original series by the people.Well,there are many ott platform having different webseries but i mention only few which are most popular among people of different ages.

Netflix–Sacred games,Money heist,Sex education

Amazon prime video-Mirzapur,Made in heaven

Hotstar-criminal justice,hostages

sonyliv-mainly popular for tv shows but have some webseries like gullak

AltBalaji-Gandi baat,Apaharan

voot select-Asur

In the era of digitalization and having the availability of affordable data and love for digital content by indian audience there is increase in these platform from the past 1-2 year and also these platform are also focuses more on original content which quite become a successful factor for these ott platform to make the webseries popular among youth and these platform also spend more on advertising because the competition has become tough and it interesting to see what kind of strategies these OTT platforms will follow in order to attract more audiences to their http://channels.In the next 4-5 years India will see significant growth in media and entertainment industry and these ott platform will play a major role in that by providing original and personalised content to the audience.

The drive ahead for online movie streaming platforms in the world such as Netflix, Hotstar, Amazon Prime Video that are resembling at cashing in on the country’s rapidly evolving online video audience and spending aggressively in originals is long.

There are three main sources of revenue for an OTT platform, generally referred to as Pay Per View or TVOD (Transactional Video On Demand), AVOD (Ads Video On Demand), SVOD (Subscriptions Video On Demand)

AVOD is Advertising Video On Demand, where the income comes from the advertisers. SVOD is Subscription-based Video On Demand, where the revenue comes from the subscribers who can avail of all the content for a short period. Pay Per View or TVOD is Transactional Video On Demand, where the audience can purchase or rent video content on a per transaction basis.

Let’s discuss the revenue models of Netflix, Amazon Prime, and Hotstat.

Netflix Business Model

Netflix, one of the highest-earning Over The Top platforms, started their business with a business mailing system and then moved to stream solutions shortly. It emphasizes shared user concepts where it allows four people to share the account. 

Netflix business model got several subscription methods which made them sustain the leading position in streaming media since 1997. As of now, they have 158 million paid members, expanding to 198 countries. Because Indians have more smartphones than smart TVs, Netflix came up with a ‘Mobile-only’ subscription model, starting at Rs.199 only. 

Hotstar Revenue Model

Hotstar has 100,000 hours of video content in 9 languages that use adaptive video streaming technology. Their subscription model has led to a whopping 350+ million app downloads with 25.3 million+ online users in India and worldwide. 

Hotstar’s revenue model consists of Premium and VIP subscription plans, where the monthly Hotstar Premium costs Rs129 per month and annual costs Rs999 per month. It also offers sports only packs which are popular during the IPL season and several other premier league tournaments. These are priced at Rs299 per year. It also came up with Hotstar VIP with Rs365 per year where it telecasts the Star Network local content and other Hotstar specials and the first to include ‘pay by cash’ model. 

Amazon Prime Business Model

Among the OTT streaming platform, Amazon Prime business model has got a most diversified business structure where Prime video acts as a great tool to attract new customers to buy physical products at amazon store.   

Also, priced at Rs 129 per month and Rs 999 per month, India is the only country to get the cheapest rate among the other Amazon global customers. 

Growth Of The OTTs

”Entertainment is reimagined with the introduction of  the OTT platform”

According to an article in The Week, OTT is the future of home entertainment in India. According to a Boston Consulting Group, OTT platform in India is currently Rs 3,500 crore but can raise to Rs 35,000 crore within the next 5 years.  

Also Read: How OTT Platform Helps Film Industry During COVID19 Crisis

Unlike traditional cable TV which takes years to gain a reputation and earn good revenue, these OTT platforms can reach the success rate quickly by launching their OTT platform. Great, unique and original content is the key here. Netflix’s ‘original’ series became a huge hit among their audiences and soon other competitors also thrived well with their exclusive content. 

The Future Of OTT

Following the video streaming platforms Netflix, Amazon Prime and Hotstar, there are several other newbies in the list which are catching the eyeballs of the audience. For instance, GudSho, a new OTT platform in India grabbed the attention of the global audience.

Hence, the future of OTT is promising for content creators, production houses and distributors. It is a win-win solution for both the content owners and the viewers where the former can get a dedicated online platform to host their videos/audios and reach millions of audience easily and the later can watch the world cinema at the comfort of their home, all with a reasonable price tag.

Update: Here’s what you need to know about OTT in 2021.

OTT platforms (which stand for ‘Over-the-Top’) will continue to grow in 2021-2024 and on. The reason is Gen Z users whose habits differ greatly from Millenials and Gen X. Modern video consumption style has gone far away from fixed-time TV shows. Remote work, online learning and worldwide flextime lifestyle many more people are experiencing today determine the trend when it’s easier to watch a favorite show or movie during the weekend, late night, or whenever there’s a bit of free time, in a relaxed atmosphere, in front of a handy-dandy laptop, tablet, or smartphone.

Since the COVID-19 pandemic outbreak in 2020, the number of people who prefer OTT has increased by 67%. It’s obvious that young people aged between 18 and 29 are the core audience for OTT channels, while the elderlies mostly prefer traditional TV.

What are the most popular OTT services on the market in 2021?

According to the latest data, nearly 69% of OTT consumers in the US use Amazon Prime and 58% prefer Netflix. Among other popular choices there are OTT services like Hulu, HBO Now, Sling, followed by a huge variety of niche OTT platforms.

How to create your own OTT Channel?

One of the platforms that allow anyone to seamlessly create custom OTT channels is Cincopa OTT. It’s much easier than building a custom solution from scratch and it cuts most of the development costs. This platform provides everything you need to set up your private-label OTT channel and can be easily integrated with various streaming platforms such as iOS and Android, Apple TV, Roku, Amazon Fire TV, Google Chromecast and more.

Although it’s not easy to compete with ‘monsters’ like Netflix, you can focus on producing unique content and reach out to millions of potential users due to low development cost and easy deployment.

 

Over-the-top content (OTT) is a term used in broadcasting and technology business reporting to refer to Audio, Video, Messaging, VoiP and other media transmitted via the Internet without an operator of multiple cable or direct-broadcast satellite television systems controlling or distributing the content.

Examples of OTT devices include,

·         Smart TVs - Google TV,LG Electronics Channel Plus

·         Gaming devices - Xbox One, Roku, PlayStation

·         Connected Device - Roku, Google Chromecast, and AppleTV

·         Platform - Web, App (iOS, Android)

For a regular user of the Internet, an "OTT app or service" is something like:

·         YouTube, Hulu, Netflix or Apple TV for streaming video

·         Skype or Facetime for voice/video calls

·         WhatsApp or iMessage for messages on a mobile device

·         Xbox 360 or World of Warcraft for gaming

Basically, any service you are receiving over the Internet that is NOT provided directly by your Internet Service Provider (ISP).

 

There is an unprecedented boom in the OTT Market across the globe due to the pandemic situation. Just like it is with the rest of the world, OTT viewership in India is at an all-time high. From just two OTT platform providers in 2012 to about 40 players now, the OTT revolution has come a long way in India.

Assuming the crisis is not going to get over anytime soon, here is a brief outlook on what could be the future of OTT in India:

1. Growth Forecast for OTT: According to a BCG Report, the OTT industry in India likely to reach $ 5 bn in size by 2023. An increase in disposable income, an increase in internet penetration to rural markets and OTT video adoption across demographic segments have been the key drivers of OTT market growth in India.

2. Rural demand will drive OTT: With increased internet penetration in rural area (estimated to be ~650 mn by 2023), OTT players are keen on developing regional content to cater to the rural markets. This is confirmed by Nachiket Pantvaidya, CEO, ALTBalaji and Group COO, Balaji Telefilms who mentioned in one of the interviews that lack of other entertainment options has spurred audiences (mostly from Tier2 & Tier 3 cities)

3. Content is always the key: To keep up with the growing demand for more content, OTT behemoth Netflix is planning to spend INR 3000 crore to create content in the Indian context. At the same time, production houses with immense production experience, knowledge about what content consumers prefer are venturing from linear TV to OTT. Many production houses have already made the collection of their content available for platforms like YouTube. Most of them have already started reaching out to other rising OTT platforms of preference in India such as Hotstar, Sony LIV, Hoichoi, Eros Now and Sun NXT.

4. OTT freebies provide arsenal for telecom wars: Proliferation of smartphones and internet connectivity at a cheaper rate coupled with extended lockdowns and its repercussions, OTT seems to be the next normal in the world of entertainment. Therefore, telecom carriers are offering incentives such as subscriptions to services from Netflix to Amazon Prime to win customers in a content-hungry market.

5. Kids Edutainment: In a 2019 report by Broadcast Audience Research Council (BARC) India, the share of localized content across national kids’ entertainment channels detailed an increase from 33% in 2016 to 39% in 2018. There is a huge market in the kid’s genre and along with the international players like POGO, Cartoon Network, Discovery Kids, homegrown Indian brands like VOOT kids, Hungama Kids, Zee5 Kids are fighting for a share of the market. In the field of kid’s education, owing to shut down and indefinite closure of schools, a Bobble.AI report states that edutech platforms such as Udemy, Unacademy and Byjus, which have posted an 82.73% increase in time spent, along with a 122.62% increase in engagement and 25.12% increase in DAU’s.

6. Corporate Learning Management Solution: At a time when physically attending training is a distant idea, organizations can meet their learning objectives by incorporating a corporate e-learning solution. In this era of Netflix and YouTube, an efficient Learning Management Solution empowers employees with the flexibility to access training at their own will and pace. With features like advanced search and filtering, employees can search and consume relevant materials whenever needed. In addition to the flexibility to learn, gamification in such solutions helps in higher engagement levels and can even help in improving overall retention too.

7. Online gaming is a new frontier: Gaming apps topped the new downloads category on both Android and iOS phones in Q1 of 2020. Especially around the younger population and the conducive environment, gaming could emerge to be a major beneficiary of the overall digital ecosystem. Media companies and OTT providers especially can look at adding gaming as a potent extension to their ecosystem offerings.

8. Demand for OTT in Health & Fitness: Video streaming platforms having got an opportunity to expand their offerings into genres like health & fitness have entered into strategic alliances to cater to the increased demand and emerging audience segments. According to a Bobble AI - The Conversation Media Platform report, besides video conferencing apps, and websites, fitness applications such as Lose Weight, Cure.fit, recorded a 104.53% rise in daily active users (DAUs) with engagement rate increasing by 14.72% and time spent on the app increasing by 39.50%.

9. Redefining Sports via OTT: The disruption of sports broadcasting due to Covid-19 has led to significant erosion of revenue for operators and Pay-TV providers. Yet at a time, when social distancing norms have disrupted live sports, Star & Disney India in the form of Disney+Hotstar VIP have given great joy to a cricket crazy nation.

It is true that OTT platforms have helped keep the sanity intact in these difficult times by being a major source of entertainment. By imbibing new age technology in all aspects of the subscriber lifecycle, OTT providers can prevent subscriber churn and offer a great quality of experience to customers.

 

As more companies realize the potential of OTT platforms, the competition has earned the moniker of ‘streaming wars’. Following the video streaming OTT platform giants Netflix, Amazon Prime and Hotstar, there are several other newbies in the list which are catching the eyeballs of the audience.

The OTT industry is projected to be US$40 billion by 2024 and is still far from saturation.

The future of OTT is ensuring for content creators, production houses and distributors. It is a win-win solution for both the content owners and the audiences where the former can get a dedicated online platform to host their videos/audios and reach millions of audience easily and the later can watch the world cinema at the comfort of their home, all with a reasonable price tag.