Streaming into the Future

Over-the-top (OTT) platforms have revolutionized the way we consume media and entertainment. OTT platforms allow users to access video and audio content over the internet, bypassing traditional cable or satellite television providers. These platforms have rapidly gained popularity over the past decade, and they have become an important part of the media landscape. In this article, we will explore the origins of OTT platforms, the different types of platforms, the content they offer, the revenue models they use, the major players in the industry, the advantages and disadvantages of using OTT platforms, and their international reach and future prospects.

Origin

The term “over-the-top” refers to the delivery of media and entertainment content over the internet, bypassing traditional distribution channels. OTT platforms emerged in the early 2000s, when streaming technology became more widely available. The first OTT platform was Netflix, which was launched in 2007 as a DVD rental service. In 2010, Netflix introduced streaming, allowing users to access its content library online. This move marked a turning point for the industry, and other players quickly followed suit.

Types

There are 3 major types of OTT platforms: subscription-based, advertising-based, and transactional-based. Subscription-based platforms charge users a monthly fee for access to their content library. Examples of subscription-based platforms include Netflix, Amazon Prime Video, and Hulu. Advertising-based platforms offer free content, but they are supported by advertisements. YouTube is the most prominent example of an advertising-based OTT platform. Transactional-based platforms allow users to rent or purchase individual titles, rather than paying for a subscription. Examples of transactional-based platforms include iTunes, Google Play, and Vudu.

Content

OTT platforms offer a wide range of content, including movies, TV shows, original programming, and live events. Some platforms specialize in certain genres; such as sports or documentaries. Others offer a mix of content from various sources. Many platforms are now producing their own original content, which has become a major draw for users. Netflix, for example, has produced hit shows like Stranger Things and The Crown, while Amazon Prime Video has produced shows like The Marvelous Mrs. Maisel and Jack Ryan.

Revenue

OTT platforms use different revenue models to generate income. Subscription-based platforms rely on monthly fees paid by users. Advertising-based platforms generate revenue through advertising, and they may also offer premium subscription services with additional features. Transactional-based platforms make money by charging users to rent or purchase individual titles. Some platforms, such as Hulu, use a combination of subscription and advertising revenue. Having said, being an online platform, the wider the reach more would be the revenue sources and to capture a large customer base.

Markets

Netflix and Amazon Prime Video are offering services  in more than 200 countries. While USA and India are among the top countries for OTT services with  Netflix, Amazon Prime Video, and Hulu dominating the US market with millions of subscribers, Indian market share is controlled by Disney Hotstar, Netflix, Amazon Prime Video, along with Zee5, Voot, Sony Liv .  China has its own domestic OTT services, such as iQiyi, Tencent Video, and Youku providing content tailored to the Chinese audience with adherence to its government policies.