The worldwide OTT market is supposed to reach over US$ 2.6 billion. OTT has successfully delivered content directly to the users bypassing traditional distribution and media networks. This gives users the flexibility to watch desired content at any time and from any place. In this blog, we will discuss the impact of OTT streaming services on the media industry.
The growing popularity of OTT streaming services has made broadcasters choose OTT platforms to deliver their content to potential users.
Impact of OTT Streaming Services on the media industry
1. OTT Platform Helps Build Stronger Connection with Customers
Initially, broadcasters have to depend on traditional distribution networks like cable and DTH platforms to distribute their content to viewers. The Rise of OTT streaming services has made it easier and more convenient for broadcasters to deliver their content directly to customers.
This constructs a stronger relationship with the customers of the OTT streaming services. It assists them with building a solid brand image and increasing brand awareness. In delivering content directly, broadcasters can also easily get insights into how users interact with their content with the help of user analytics data. Data helps them create better content, especially according to their customer’s preferences.
2. Seamless viewing experience across multiple devices
One of the major reasons why many users prefer OTT Streaming service is because of user experience. It allows users to access the videos on multiple devices and platforms as they desire. It’s more convenient for users to watch and stream video content on OTT. Users can watch whatever they want at their own time and on any device. A seamless viewing experience across multiple devices and platforms should be the first priority for OTT platform owners who want to build a broader audience base.
3. Advertisers and marketers choose OTT Streaming services as an Option.
You will be stunned to know that the complete money spent on ads for the OTT platform is estimated to surpass $300 billion. The worldwide advertisement market is noted to be more than $700 billion. At present, the popularity of OTT streaming services is developing among the crowd. Advertisers want to promote their products or services on OTT to get quality traffic and generate quality leads based on user behavior.
4. OTT leads to more Cord Cutting
With the rapid growth of the OTT market, competition between OTT streaming services and pay-TV has changed massively. Cable TV operators and traditional broadcasters are largely affected due to the gigantic shift in video content consumption. This led to a reduction in the number of subscribers. It is noted that in the next few years, nearly half of the worldwide population will unsubscribe from cable tv networks.
5. Cable TV operators joining hands with OTT Streaming service
The continually expanding number of cord-cutters has resulted in a fall in income for traditional TV broadcasters. They are presently looking for new ways of gaining back their watchers. The gigantic popularity of OTT has made top-grade TV networks and film giants join hands with Netflix and Amazon. Considering the rapid development of OTT streaming services, it’s smarter to be part of the streaming business and advantage from it instead of attempting to fight the OTT versus pay-TV war where they appear to be losing.
6. OTT is Powering New Technologies
OTT platform, along with Artificial intelligence, increases user experience. By utilizing AI, you can figure out what users really need to watch. OTT can earn more income and convey more customized experiences to hold onto users.
Likewise, arising Technology like 5G with a rapid and uninterrupted network connection will ensure OTT streaming services stream video content of the highest quality without buffering. 5G Technology will give OTT a massive lift to both live streaming and VoD with its higher data transmission and lower latency.
7. OTT – a new world for video creators
There was no shortage of video creators worldwide. There was no platform available for video creators to showcase the video content to people as there were only Traditional TV networks were only available. OTT platform became a house of opportunity for these individual video creators and artists to showcase the video content. Video content genuinely went worldwide with OTT, where the creators of the East joined hands with the west with practically no restrictions or obstacles like language and the other way around. It gave Entertainment a much-needed lift. OTT streaming services improved users’ experience by including different audio languages and subtitles for video content to attract a different group of audiences to the OTT platform.
Conclusion
OTT is here to stay for a longer time, and with more and more users opting to watch videos on OTT, OTT streaming services will continue to rule the media industry. For Video content creators, it’s a huge opportunity to go on flow with this wave otherwise, you will lose in the long run. Between Pay TV vs OTT war, The user is gradually moving on the OTT side. Gives you a clue to not miss this chance to directly deliver video content to your viewers.
