OTT Platform: Definition & Working
What Is an OTT Platform?
OTT (Over the Top) services stream digital media like video, audio, and others directly to the viewers without the need for a cable TV setup. OTT technology has significantly disrupted the use of traditional cable TVs. With a stable internet connection and an OTT device, viewers can stream on-demand media.
The global OTT industry has an impressive CAGR of more than 29% for the forecast period of 2020 – 27. Read on to know more about OTT platforms and their working mechanism.
What Devices Are Used for Delivering OTT Services?
OTT services are provided directly from the publisher to the viewers via an internet-based delivery mechanism. Many OTT platforms offer omnichannel streaming to compatible devices. The devices that are used for delivering OTT services are as follows:
• Mobile Devices
Mobile devices like smartphones and tablets can be used for accessing OTT platforms. Native mobile applications are available for mobile devices that help users to stream on-demand videos. You can access your account on an OTT platform at various geographic locations as all you need is an internet connection.
• Desktops
Some OTT video platforms offer streaming via a web browser, while some offer via desktop applications. You can connect your desktop to the internet and can start streaming on-demand videos. Don’t forget that besides videos, other digital media can also be distributed via OTT technology. You can also stream audio, podcasts, and others via a desktop-based OTT application.
• Smart TVs
People who ditch traditional cable TV services are also called out as cord-cutters. The count of cord-cutters worldwide is expected to cross 55 million by the end of 2022. OTT business is now shifting towards smart TVs that can be connected to the internet. Smart TVs come with pre-installed OTT applications or, you can install them yourselves.
• Other Digital Devices
Many other digital devices can be used to stream on-demand OTT media. For example, Apple TV is widely used by iOS users to stream OTT content. Gaming consoles are another widely used device that can download and run OTT applications. OTT solutions have a wide reach due to numerous compatible devices.
How Does the OTT Platform Work?
Publishers stream OTT content directly to the viewers. OTT streaming is to be adjusted according to the performance of the target device. The performance of a device will depend on the network connectivity and display features. For example, the display features of a smart TV will be more efficient than that of a smartphone.
OTT streaming has to adapt to various devices and it does it via ABR (Adaptive Bitrate Streaming). If the network connectivity of a device is slow, ABR adjusts the OTT streaming to lower bitrates. In this way, OTT streaming platforms offer seamless content to their viewers.
How to Develop an OTT Platform?
The basic steps for developing an OTT platform are as follows:
1. Setup and Development
A free or unreliable OTT platform provider will not give you full control of OTT streaming. For enjoying all the benefits of OTT, you can contact a white-label OTT platform provider. A white-label platform provider will let you build a customizable OTT platform as per the requirements. You can enjoy lifetime ownership of your OTT platform by choosing for white-label development. A white-label development team can also make native applications for your OTT platform.
2. Monetizing OTT Content
The next step is to choose the revenue model for your OTT platform. You will form your OTT business strategy based on your revenue model.
Some of the top revenue models for OTT streaming are as follows:
• AVOD
Ad-based video on demand (AVOD) asks users to pay for accessing ad-free content. If users do not want to pay then they will have to go through advertisements in between OTT streaming. OTT platform providers prefer AVOD for distributing targeted ads to the target audience.
• SVOD
Subscription-based video on demand (SVOD) is one the most used revenue model by OTT streaming platforms. It asks viewers to pay for viewing all the content available on an OTT platform on a monthly, yearly, or quarterly basis. You should choose a provider that lets you choose from various revenue models while OTT platform development.
• TVOD
Transactional video on demand (TVOD) asks users to pay for each OTT content they access. It is also called a pay-per-view model where you do not pay for anything that you don’t stream. If you have only limited OTT content to offer, you can choose the TVOD model to maximize your revenue.
Conclusion
The recent COVID pandemic boosted the growth of OTT services as traditional cinema halls were closed. First-run movies are also being launched on OTT platforms. OTT platform benefits can help you generate huge ROI. Build your white-label OTT solution now!
