IPTV: :If you want to understand how OTT services work, why they have been so successful in recent years, and how this concept has enabled the emergence of content giants, then buckle up! Here’s everything you need to know.
What is OTT (Over The Top)?
OTT service is a way to deliver multimedia content over the Internet without a third-party operator controlling the transmission. The term also applies to audio, video, messaging and voice, although OTT is best known for its use in video and television programming.
To put it simply, OTT is based on a video delivery method that allows anyone using an internet-connected device (smart TV, computer, tablet, smartphone or game console) to access videos on the public internet. To enjoy a content stream, users simply need to pay for an internet service (broadband or mobile data) and, if applicable, an OTT service subscription.
Anyone using an internet-connected device can access content anytime, anywhere. The most popular OTT names include YouTube, Netflix, Amazon Prime Video, Disney+ and HBO Max.
Read the article: What is IPTV?
How does OTT work?
OTTs are pure streaming content providers. Because they use a free broadcast system to deliver video and there is no dedicated distribution channel like IPTV, OTTs only deliver content on-demand and in unicast form. It is a one-to-one delivery method that sends a single stream to a single connected device or receiver.
In this case, ISPs have no control over the delivery and display of videos or the copyrights of content. They simply provide the infrastructure through which OTTs deliver content directly to end-user devices. And as the infrastructure and overall costs for OTT are falling significantly, their prices tend to be cheaper than IPTV.
However, with flexibility and ubiquity come new challenges. One of the inherent challenges of OTT is supporting a wide range of networks and devices to deliver content over the public internet. OTT performance depends on the speed of the internet connection, available bandwidth, and the connectivity speed supported by the end user’s display device. Therefore, picture and sound quality may be affected as the OTT app adapts to the network performance to avoid buffering issues. How exactly does this happen? By playing the video file that best adapts to the network conditions and screen size each time to avoid a drop in data transfer.
The advantages of OTT services
Some of them have already been mentioned, but let us briefly discuss the key benefits of OTT services.
Variety of content
Viewers of traditional pay TV (cable, satellite, etc.) typically lack content diversity due to limited catalogs or restrictions on content packages. OTT services, on the other hand, offer a wide variety of original and licensed content, including VOD titles, linear TV channels, and live streams.
Affordable price
As the overall infrastructure and costs of delivering an OTT service are reduced, their prices tend to be more attractive and affordable. They can go down to €5 per month or even be “free” in the case of ad-based services. This is why viewers in OTTs generally do not choose one or the other. They prefer to subscribe to different services to meet their content needs.
More freedom for consumers
Consumers value the ability to choose and control their entertainment. With an OTT service, they can decide exactly what they want to watch, when, and on which device. This increased consumer choice leads to greater engagement with content and greater user loyalty.
The future of OTT services
Knowing that OTT has overtaken traditional TV as the primary source of watching TV and movies for the first time in 2021 is somewhat surprising. We have witnessed a shift in mentality as modern consumption is no longer attracted to traditional TV and cable. Moreover, market experts predict that the continued growth of this market is far from over.
