Traditional channels, including broadcast television and cable, have been part of our lives for decades. But everyone’s viewing experience started to change when OTT streaming platforms were introduced into the market in 2007.
But during that year, the impact of OTT platforms was not huge. It changed in 2012 when Netflix, Amazon Prime Video, Hulu, HBO Now, Disney+, and other premium platforms started to deliver their content straight to their targeted market.
| Streaming Platform | US Market Share |
| Netflix | 34% |
| YouTube | 20% |
| Hulu | 11% |
| Amazon | 8% |
| Disney Plus | 4% |
| Others | 23% |
It does not stop there, however. Video streaming solutions have gained massive popularity in times of a pandemic. In the first quarter of 2020, for example, Netflix recorded a whopping 16 million new sign-ups. That’s immense.
Now, we cannot deny that subscription video on demand (SVOD) and advertisement-based video on demand (AVOD) platforms have started to take over the world of entertainment.
Why could OTT platforms be the future of entertainment? What makes OTT streaming platforms the top favorite for people from all walks of life? Read on for more!
What Is OTT?
You probably have encountered OTT a couple of times already. What is it, though? An OTT platform, called OTT solution, refers to a video streaming service that provides any type of content to valued customers online. A good example is HBO Go.
OTT platforms could also mean a subscription model wherein it comes with a charge, just like Netflix. Disney Plus, and HBO Max. It is also used to denote video content, covering most audio services like Spotify.
What Makes OTT Streaming Platform Popular and Different from Conventional Cable Subscription
Cable subscriptions will not be part of our everyday living for nothing. We could watch our favorite programs, from sports to action movies, without the need for a stable internet connection.
Here is the thing. Traditional satellite pay-TV providers are costlier and not ideal for those who are on a tight budget. The limited variety of channels is another problem customers have been complaining about for years. Also, the quality of video content is subpar.
This marked the beginning of video streaming solutions. Who would have thought it would grow into what it is right now? No one expected it.
In 2019, everyone was surprised with the OTT market as it’s worth $121.61 billion. That’s huge. But according to Allied Market Research, it will reach $1.039 trillion by 2027, which is not surprising to hear, right?
Now, you may start to ask what makes AVOD platforms famous and different from a traditional cable subscription. Below are some possible reasons they have taken the world by storm:
- A Wide Variety of Options to Choose From
We always look for a variety while binge-watching any video content to stay entertained. Even if cable subscription services provide multiple options to select, they cannot compete with the wide collection of choices in AVOD platforms.
In Netflix, for example, there are several genres to explore, including TV shows, anime, thrillers, children & family, sports, classic, sci-fi & fantasy, comedies, romantic, documentaries, music, dramas, and horror.
If things do not go well in your work, school, or life as a whole, the comedies in the AVOD platform are among the sought-after options you cannot afford to miss. For those who want to be in love once again, there are romantic movies and series you would fall in love with for sure.
- Original Content
Who says OTT platforms only stream classic TV shows and movies? That’s not the case with popular streaming giants, including Amazon Prime, Netflix, and Hulu, as they have begun producing original content to meet and exceed the varying needs of the market over time.
In Amazon Prime, for instance, it prides itself with the Bosch, Hand of God, Sneaky Pete, Betas, Alpha House, Annedroids, Red Oaks, Baahubali: The Lost Legends, Undone, Invincible, Creative Galaxy, Tumble Leaf, and Lost in Oz.
Netflix, on the other hand, remains the number one option for many for a reason. Like Amazon Prime, it has original series such as Bloodline, Trailer Park Boys, Bojack Horseman, Daredevil, The Ranch, the Crown, the Killing, Stranger Things, Fuller House, House of Cards, Luke Cage, and more.
For Hulu subscribers, The Confession, The Path, Battleground, Quick Draw, Solar Opposites, Crossing Swords, and the Doozers are a must-watch.
- Enjoy High-Value Content that’s Available at a Low Cost
Another reason VOD streaming platforms have changed the world of entertainment is they provide a high-value content that will not break your bank.
Every content is available in high definition, taking everyone’s viewing experience to another level without causing a dent in your savings account.
Netflix, in particular, provides a vast range of membership options. The basic service costs $8.99 per month. The standard package is around $13.99, while the premium one costs $17.99.
Whether you are on a budget or want to watch your favorite series on different screens, Netflix has specific pricing plans that will meet and go beyond your needs and requirements.
- Watch Anything On Multiple Devices
Traveling for hours can be boring and daunting. This is where watching your favorite series on top streaming platforms can come to your rescue.
But if you only have a cable subscription, it would be impossible to binge-watch the latest episodes of an action movie without carrying a television set.
Fortunately, that will not be the case when you subscribe to a premium VOD streaming application.
Whether you are using a smartphone, tablet, laptop, or personal computer, you can stay entertained without any trouble along the way.
The Future of OTT Platforms in the Entertainment Industry
Now, what will happen to OTT platforms in the future? Will it continue to change how we watch? Here are some possible trends of video streaming solutions in 2022 and beyond:
- The Market will Continue to Expand
OTT streaming platform remains a leading distribution channel for educational videos, exercise programs, live sports, and other highly watched content.
It is no surprise as it is still recognized as a viable and attractive channel for business-minded people like advertisers.
For that reason, studies have suggested that more than 57% of digital marketers would increase their spending on OTT this 2021 and beyond.
- Livestreaming will be Bigger
According to Fast Company, approximately 1.2 million households in the US canceled their satellite TV or cable subscription in 2020 alone.
Live streaming services, on the contrary, increased to more than 300% and are projected to thrive in the coming years.
So, what’s your thought? It is time to invest in an OTT platform to help you stand out from your competitors, provide better customer engagement, and improve your sales.
It is just important to look for a competent team to make your OTT application development more seamless and less stressful than expected.
