What exactly is OTT? And How It Will Help You in the Future

The amount of individuals watching entertainment video content on the internet has expanded rapidly from 1% in 1995 to 40% of the world's population now. Thanks to the OTT environment, a lot has changed in the way people watch TV nowadays. More than half of the world's population watches live sports online, subscribes to online video material, and watches on-demand movies. All of this is feasible thanks to the wide range of OTT material that is now available.
In a world where technology is advancing at an unprecedented pace, it's becoming increasingly challenging to keep up with the latest innovations. One such innovation that has transformed the entertainment industry is over-the-top (OTT) media.In this article, we will explain what is OTT and how it will help you in the future.

What is OTT, exactly?

OTT (over-the-top) simply refers to the delivery of media material through the internet rather than through traditional distribution channels.

Does this mean that everything we consume on the internet, including social networking, messaging, movies, YouTube, and television, is considered OTT? Yes, to a degree.

OTT should be divided into two categories: OTT Messaging and OTT Video, in our opinion.

As we can all see, today's communication is mostly conducted through the internet, with WhatsApp replacing text messaging over mobile networks and Skype replacing traditional phone calls. OTT messaging refers to the practice of transmitting information through the internet.

What is Over-the-Top (OTT) Video?

To put it simply, OTT Video is the distribution of audio/video content or TV programming over the Internet (via Broadband or Mobile Data) by various service providers, for free or for a fee (also ad-supported), without the content delivery being controlled by the internet service provider (ISP) or any Multiple System Operator (MSO).

When we say "without controlling content delivery," we imply that, unlike IPTV, ISPs are not accountable for or capable of controlling viewing capabilities, copyrights, and/or other forms of material redistribution.

OTT service providers either aggregate material from various production houses, studios, distributors, and MSOs, or they create their own content to be broadcast on-demand, pay-per-view, subscription, or even linearly.

While Netflix was growing, traditional TV networks were content to licence their outdated shows to the streaming service. Given the simplicity and flexibility of choosing your material, accessing it at any time, and on any screen, the entire paradigm has progressively evolved from watching traditional TV to Netflix today. Netflix has already surpassed HBO in terms of global subscribers, at 83 million.

What are OTT and IPTV?

IPTV is essentially the delivery of television services through a packet-switched network using an Internet Protocol Suite rather than traditional signal, cable, or satellite networks.

The main distinction between OTT and IPTV is that OTT material is delivered over a public network (i.e. http), whereas IPTV content is delivered over a private network (i.e. UDP), which is often the MSO's own infrastructure.

From the perspective of a consumer/viewer, OTT can be a broad term because it allows them to access a range of material via an OTT service that is consolidated on a single platform and can be accessed on-demand. IPTV offers all broadcasting models, including live TV, on-demand, and pay-per-view, however, the difficulty may be that viewers have a limited selection of material.

Pay TV's Impact on OTT

HBO's most significant launch of its own OTT service — HBO Now – Early this year, a huge question has arisen over whether OTT will totally take over the Pay TV business.

According to surveys, the majority of people are considerably more likely to abandon their Pay TV subscriptions if they can receive what they want from an OTT provider. However, the same audience claims that if they find a better OTT service with fresh and exciting local content at a lesser rate, they will abandon their present subscription.

One new criticism levelled against OTT providers is a lack of current, fresh material, which Pay-TV providers have managed to get in the past, captivating their consumers and keeping them glued to their TV boxes. And it is for this reason that, despite widespread cord-cutting, Pay TV still exists and may continue to exist if MSOs continue to provide great, innovative content. OTT, on the other hand, will acquire traction among the younger people on a global scale.

The future of OTT business?

The impact of OTT on Pay TV can be compared to a slow puncture in a tyre that may have started miles ago and will continue to invade mile by mile until it reaches the centre, inflating the system all at once. Pay TV operators are undoubtedly experimenting with various defensive methods, and it will be interesting to watch how far the system endures.

The increasing number of OTT services scoring demonstrates how hot the OTT market is. Hulu just claimed an annual growth rate of over 30% year over year, with over 12 million premium members on the way. Netflix, for example, is available in more than 200 countries around the world and is constantly expanding and breaking records, recently reaching 75 million users. Amazon has over 50 million registered customers, all of whom have access to original Prime content, despite the fact that it only began lately.

With new OTT services being launched every day, broadcasters entering the space, Pay TV providers intending to launch their own OTT services, and viewers enthusiastically welcoming them all, the OTT race is far from over.

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