The business of entertainment is changing rapidly. As market dynamics change, so do consumer behaviour and expectations, alongside business and operational models. There has been a dramatic increase in the usage of OTT platforms since the outbreak of COVID-19. That being said, there is a fair amount of skepticism within the analyst and media communities, as well as the common public, that OTT may just be a fad which will taper down with time. Here, we address these skeptics with 5 reasons why OTT is likely to become the next big thing in the world of entertainment.
OTTs put consumer experience at the core of everything
Since OTT platforms are built on digital platforms that have a strong bent towards big data and data analytics, OTT players today have a better understanding of their content and consumer patterns. They know that their consumers won’t settle for anything less than a top-class media experience. OTTs provide a platform to everyone from sport stars, influencers, business tycoons to education, political heavyweights and celebrities to express themselves through content that could be light, formal or informal. Keeping consumers at the core, who are interested in topics that are beyond the realm of just pure entertainment, OTTs aspire to be a one-stop destination for different forms of content from all walks of life. These traits make up the hallmark of any OTT worth its salt.
In the period between March 1 and 21 alone, entertainment and OTT have registered a 34 percent increase. The global OTT market size was valued at $121.61 billion in 2019, and is projected to reach $1,039.03 billion by 2027, growing at a CAGR of 29.4% from 2020 to 2027. Today’s generation relies on OTT platforms to kill monotony. Online streaming has emerged as the most popular source of entertainment, among other options, as a large percentage of youth have turned towards OTT platforms in their free time.
The biggest contribution to OTT growth is that it has fundamentally changed the way we watch content. From Appointment viewing on Linear TV to Video on Demand- Anywhere, Anytime and on Any device. This is the single biggest factor of OTT’s existence and growth. Choice is what every human craves for- be it content, time of watching it and money you pay for it!
Freedom offered to content providers and consumers
OTT platforms are giving content providers the budget that they won’t give anyone else, not to mention the freedom to come up with content that is sociopolitical. There’s no more the producers that say there’s no audience for this kind of content, to protect themselves, and there’s greater acceptance for low-budget content. On the one hand content writers now have the budget and freedom to do what they want. On the other hand consumers have gained viewing independence in terms of location, device, time and poor quality of choices.
5G will be a Game Changer
5G connections will enable more people to become content producers without worrying about huge investments in high bandwidth communications equipment. This change is not just going to impact the OTT world for the better but also VR sports, music, and multi-game streaming entities. One of the most noteworthy improvements the 5G network brings to the OTT industry is Fixed Wireless Access-based video transmission. 5G will force high-quality consumption in households, thereby expanding viewership and the demand for OTT campaigns.
A platform-based business model that’s scalable and flexible
The Internet is a powerful medium to reach a broader user base anywhere in the globe, with the advancement of new technologies, that have driven and enabled user-centric solutions to make consumers happy. OTT platforms are a new channel for content delivery and they allow you the flexibility to use their services anywhere, anytime.
Though COVID-19 is driving a record number of subscriptions, OTT platforms cannot neglect competition and the variety of choices being available for consumers. This is where content management would play a major role in understanding consumer needs and viewer experience to help increase the member base and ensure business continuity. While focusing on delivering quality content, OTT players need to prepare for the low-latency and high-throughput that will be offered by 5G wave. Building a robust infrastructure to deliver quality service to their customers and offload technology costs will become more crucial than ever.