How OTT platforms are changing the landscape of the media
More than a half-trillion dollars are at stake as a result of the digital revolution.
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Updated November 2026. This was first published on 8 April 2022. The idea is the same. Any number below is what the original piece said then. It is not a new count.
Key takeaways
- More than a half-trillion dollars are at stake as a result of the digital revolution.
- The huge and fast-growing advances of the internet and over-the-top (OTT) video platforms are transforming television and filmed entertainment, particularly traditional broadcast TV.
- The annual market value worth $570 billion is at stake.
More than a half-trillion dollars are at stake as a result of the digital revolution. The huge and fast-growing advances of the internet and over-the-top (OTT) video platforms are transforming television and filmed entertainment, particularly traditional broadcast TV. The annual market value worth $570 billion is at stake.
OTT television, which generates around $25 billion in yearly revenue worldwide and is mostly driven by a handful of large US-based global firms such as Netflix, Amazon, and Google’s YouTube, is at the heart of this transformation. But, little research has been conducted to date on the influence of OTT and the shifting TV environment on the various domestic production ecosystems throughout the world.
How is OTT changing the principles of content creation and distribution? #
Space shifting, place shifting, and time-shifting are three revolutionary changes in video content and how it is made and watched that have been enabled by OTT.
Space shifting:** Perhaps the most significant change in the video value chain is that facilities-based distribution (such as cable and satellite) is no longer the sole way for consumers to receive content. The music business serves as a good example. Walmart, the world’s largest retailer, sells over 60,000 music songs in its physical stores.Digital music subscription services, such as Spotify and iTunes, on the other hand, have infinite “shelf space” and may make up to 30 million tunes available to subscribers.
OTT has had a similar influence in the media/entertainment industry. Content makers and aggregators are no longer constrained by the restricted distribution “bandwidth” available on a fixed (though vast) number of TV channels supplied over the air or by cable, fiber, or satellite transponders. The distribution of goods and services is no longer a zero-sum game. The internet has abolished the restriction of shelf space in all marketplaces. Almost any video maker or storyteller’basically, anyone with a high-speed mobile or internet connection’now has access to billions of potential viewers.
Place shifting:** The expansion of mobile and streaming access (as well as portable media devices with ever-larger and higher-definition displays) has given customers more control over what they watch (planned programmes vs streaming video) and when and where they view it (at home or on the go). Viewing statistics illustrate the story: total viewership in the United States has increased by three hours per week since 2009, with virtually all of the growth coming from viewing that is not tied to traditional facilities-based TV.
Time Shifting:** Nonlinear or time-shifted viewing, whether linked or untethered to traditional facilities-based delivery, now accounts for nearly a quarter of all viewing hours. Because nonlinear viewing supports some material types better than others, time shifting has altered what people watch and how they watch it. Certain types of entertainment, such as serialised dramas, encourage bulk viewing (also known as binge-watching) because it is simpler to keep track of several characters and narrative threads. Also, some viewers prefer watching shorter content rather watching content that takes months to complete.
How OTT Is Changing the Media Industry #
The rising popularity of OTT media platforms has also made it the preferred choice for OTT broadcasters to offer their content to a specific audience. The use of mobile phones and smart TV gadgets has increased tremendously as internet penetration has increased globally and internet subscriptions have become more inexpensive. According to a recent estimate, worldwide mobile data traffic will exceed 77 exabytes per month by 2022, up from 28 exabytes in 2019. The adoption rate of smart TVs has also increased from 11.5 percent in 2013 to 32 percent in 2019.
1. The OTT Platform Helps in the Formation of Direct Connections with Users #
Broadcasters have traditionally relied primarily on cable and DTH systems to provide their programming to end viewers. The introduction of OTT media streaming has made it quicker and more easy for broadcasters to directly exhibit their material to end consumers, eliminating the need for any middlemen in the process. The finest part is that it allows them to establish a direct interaction with the OTT platform’s users. It also assists them in developing a strong brand image and improving brand recall. Also, broadcasters may gain precise information into their users and how they interact with their programming. This will assist them in creating what the target audience want rather than simply imposing it onto them.
2.OTT Gives Viewers a Consistent Viewing Experience #
OTT services have long sought to make it easier for viewers to stream and watch content. It gives people the necessary freedom to select and view the information they want at their leisure. A unified watching experience across numerous devices and platforms is essential for OTT platform owners looking to establish a loyal following and audience base. Broadcasters must also reconsider their strategies for engaging multi-screen viewers.
3. It has multiple Monetization Options #
One of the nicest aspects of OTT platforms is that they provide broadcasters and content creators with different revenue opportunities to capitalise on their skill and hard work. Subscription video on demand, transactional video on demand, advertising video on demand, third-party ad integrations, and so on are some of the most frequent monetization approaches. The subscription monetization model and the advertisement monetization option are the most dominant in the industry.
4. Becoming a first-choice option for top advertisers #
You may be surprised to find that the overall ad spend for OTT platforms in 2020 was nearly equal to USD 990 million. As OTT platforms gain popularity among audiences, advertisers seek to promote more on these platforms to receive quality traffic and a relevant audience. This improves their marketing ROI and leads to increased conversion rates. Advertisers now have greater freedom to promote their products and services depending on customer actions and interests.
5. OTT Is Changing the Game #
The most crucial reason broadcasters are transitioning to OTT platforms today is because it is the future and will soon rule the media and entertainment business. If you are a broadcaster or a content provider, you should understand how critical it is to ride this wave if you do not want to become unimportant in the long term. Viewership on OTT solutions is continually increasing, and you must not pass up this excellent opportunity to immediately showcase your services to the end viewers.
In today’s environment, everyone is placing a large bet on the usage of OTT technology to provide content. Traditional media outlets and broadcasters are finding new methods to enter the OTT arena and make their content available online via Over-the-Top platforms. The OTT entertainment environment has become much more competitive as a result of this. To thrive in this competitive environment, you will need to develop a solid strategy. OTT video platform behemoths have already found a technique to keep their ‘Original’ material enthralling their audiences.
Questions and answers #
How is OTT changing the principles of content creation and distribution? #
Space shifting, place shifting, and time-shifting are three revolutionary changes in video content and how it is made and watched that have been enabled by OTT.
How OTT Is Changing the Media Industry? #
The rising popularity of OTT media platforms has also made it the preferred choice for OTT broadcasters to offer their content to a specific audience.