How OTT Drives the M&E Industry
By Media Entertainment Tech Outlook | Friday, April 10, 2020
Here's how OTT media service delivers a seamless viewing experience to users across networks and devices.
FREMONT, CA: It's no mystery that content distribution, generation, and consumption are disrupting television. Mushrooming acquisitions and collaborations are swiftly reshaping the video media platform. Potential partners, especially OTT video providers and conventional mobile network operators, are striving for collaboration to achieve the most considerable market share, building business alliances and product offerings that are continually evolving. The ultimate difficulty lies in figuring out offerings that boost revenue while drawing customers. The digital on-demand content market is still emerging, and arrays of organizations are exploring alternate monetization models.
The most popular monetization models are Advertising Video on Demand (AVOD) and Subscription Video on Demand (SVOD). Customers are spending more on SVOD than ever since, making it the only largest video services payment means at 51% of global spend. That said, Transactional Video on Demand (TVOD), comprising digital rental and electronic sell-through, still offers more than half of all OTT services. With the increase in subscription-based services, transaction-based services will increase in the long run and are the best medians to sell content for a large average selling price. Streaming television is reaching every corner of media, disrupting how content is created and distributed. Today, nearly 50 million families have OTT video that viewers consume it in the very same time-of-day pattern as conventional TV viewers.
Even though more TV viewers are embracing internet-based distribution, the apparent majority are still using TV programming through conventional bundles in enhancement to OTT offerings. Based on modern viewing habits and untapped video segments, a significant growth opportunity exists in live and linear OTT services, which are assumed to be an integral part of the next generation of OTT video.