Over-the-top Content — The Basic Guide for Media Providers
Over-the-top (OTT) is a technology that enables content streaming via internet-connected devices to multiple platforms and services. When it comes to software development, OTT is typically discussed in the context of video. Not long ago, viewers consumed all video content on a TV connected to a cable or satellite provider. Today, viewers can watch video content on multiple devices, without the need for a cable or broadcast TV connection.
For various reasons, video has huge business potential today, and you’re probably already using it to inform, engage, or promote. But if you’re relying on platforms like YouTube, Vimeo, or simple embedded players, you’re not making the most of it. These third-party solutions don’t give real control over user data, monetization, or playback quality — all the things that keep viewers coming back and paying for your services.
Types of OTT Streaming
OTT streaming implies video or audio content played over the Internet. There are currently two popular types of OTT streaming on the market: pay-to-access and free-to-access. Most OTT services operate on a paid subscription basis, but with several monetization methods available, free content providers place ads on their platforms as an alternative to a subscription. There are also platforms that combine rates and offer tiered packages that allow users to either get free access with ads or pay for ad-free viewing.
OTT platforms provide high flexibility in monetizing their content. Let’s list the most popular models:
- AVOD (ad-supported video on demand)
Similar to YouTube, but with more control. You provide the content for free, but place ads in it and earn revenue from them. - SVOD (subscription video on demand)
Users pay a regular fee for unlimited access to your content. This model is well suited to providing ongoing content with high demand and user engagement. The most well-known example of this model is Netflix. - TVOD (transactional video on demand)
A one-time fee to watch only special events or premium content. Ideal for providing one-time access, such as live sports or exclusive music releases. - Hybrid models
These are various combinations of subscription and advertising models in order to attract as many audiences as possible and increase revenue. An example would be providing free access to content with ads combined with a subscription to premium content without ads.
You might be wondering — what’s the difference between OTT and live streaming? Let’s break it down: OTT is a technology that allows content to be delivered on-demand via the internet to devices such as mobile phones, TVs, computers and tablets. Live streaming is the broadcast of content in real time via the internet, allowing viewers to tune in and watch what’s happening.
How Do These Platforms Operate?
To successfully implement a robust OTT streaming system, several critical components need to work together seamlessly, namely:
- Content types
Populating the system with your content isn’t just a matter of “load it and forget it” — it’s important to create well-functioning processes that handle live streams, huge video libraries, last-minute updates, and even user-generated content at scale. - Digital Rights Management (DRM)
Maintaining copyright on your content is a key, especially when you’re delivering premium content or working with licensing agreements. Strong DRM helps you comply with regulations, protects your catalog, and reassures partners that it’s safe to work with you. - Analytics and monetization tools
Choose the right analytics tools to track how users watch your content, in what situations they leave more often, what content attracts more subscribers. Then you can use this data when choosing advertising channels, creating subscription offers, or promoting your service for investors and partners. - Content Delivery Network (CDN)
A reliable, high-quality CDN caches your content close to your viewers, whether they’re in Tokyo or London. This is something you need to think about early on in development, as slow loading times will mean lower viewership and advertising revenue in the future. - Transcoding and encoding
It’s important to ensure instant and uninterrupted playback on any device, with different connection quality. That’s why when developing your OTT platform, you need to transcode content into different resolutions and formats right away, as poor encoding leads to buffering and user loss.
Final Thoughts
Launching your own OTT platform is a new opportunity to grow your business, enlarge an audience, and diversify your revenue sources. Today, the transition from traditional media to OTT has had a major impact on content distribution and monetization channels, providing advertisers with a great opportunity to reach additional audiences on modern platforms and devices.
Since Over-the-top services offer a variety of ways to attract audiences and generate revenue, companies should focus their efforts on creating and improving such a platform. However, you should always remember the basic principles listed in our article to attract as many users as possible and keep them engaged with the content you distribute. That’s where a qualified and experienced development team is a must! Contact us and discuss your OTT platform ideas.
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