OTT has been the buzzword in the media and entertainment industry for the past few years. It deserves the entire buzz that surrounds, given the value it adds for the viewers and creators alike. High-speed internet penetration along with affordable smart devices has made OTT platforms like Netflix and Amazon Prime a household name. The younger generations have developed a fondness for this entertainment medium over traditional sources like cable TV, given the convenience and flexibility it provides.
Also, the leading OTT platforms have a huge video library catering to diverse audience preferences.
It will amaze you to know that the OTT media revenue worldwide was approximately equal to USD 83.3 billion in 2019, and this number is expected to grow to USD 167 billion by 2025.
This is almost double in a brief span of 6 years, one of the fastest video streaming industry trends. The global COVID pandemic is also one of the prime reasons we are witnessing this exponential growth. OTT platforms have been the go-to entertainment channels for a majority of people who are stuck at home because of extensive nationwide lockdowns. Let’s delve deeper into the latest OTT trends that will shape the future of this industry.
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The 5G Technology Will Be a Game-changer
Internet is among the greatest inventions of all time and high-speed internet in the contemporary further consolidating this statement. 5G internet has proliferated around the urban areas and is expected to become a norm soon. Did you know that 5G is theoretically almost 100 times faster than the usual 4G LTE technology? It also promises a latency of less than one millisecond. This next-generation cellular internet technology will provide a consistent high-speed internet that’s much needed for video content, especially the live stream content.
Immersive Streaming Technology Will Be Mainstream to Deliver 4K Videos
Do you know streamers who use 4K videos to deliver an immersive streaming experience? Few of them use this new streaming technology because of the low internet bandwidth and speed issues they face. Also, the usual consumer-grade internet connections don’t allow viewers to seamlessly enjoy highly immersive streaming content. The latest streaming technology will leverage the 5G internet to help users enjoy 4K videos with almost no latency and interruptions.
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Big Players Joining the OTT Revolution
Netflix is among the leading OTT giants that ruled the industry for almost a decade facing no major competition. However, the current circumstances have slightly changed as the media giants including HBO and Disney have released their own OTT portal, Disney+ and HBO Go to deliver premium content for paying subscribers. Other leading players who are catching up on the OTT wave include Apple, Comcast, and AT&T. This will influence the OTT viewing trends to quite an extent.
Subscription Fatigue: A Need for Innovative Video Monetization
There are multiple monetization methods available for OTT channels to generate their revenue from. However, the subscription-based model has been the leading one that OTT giants like Netflix and Amazon have also used. As per a recent global survey, over 60% of people have subscription fatigue with so many options available. The need for an innovative monetization method is paramount. The advertisement VOD and transactional VOD models are among the suitable alternatives that will shape the future of OTT video monetization and reduce the streaming services trend.
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The Coronavirus Pandemic Has Been a Catalyst of Growth
The global Corona virus pandemic has hampered the growth of all major industries, except a few. The OTT industry is, among the exceptions, positively affected by this pandemic and has grown beyond bounds. Lockdowns have forced people to work from home and spend more time indoors. This has compelled them to switch to OTT channels for entertainment, increasing the watch time and revenue for the OTT platforms.
Connected TV for a Better Viewing Experience
CTV stands for Connected Television; it refers to streaming content on television using the OTT technology. To enjoy a better screen experience, viewers prefer watching their favorite content on a television instead of mobile phones. OTT TV trend has grown over the past couple of years and is expected to dominate in the coming years as more people switch to smart TV Apps.
Enhanced User Experience (UX) to Beat the Competition
People are accustomed to using the best OTT platform like Netflix, not just because of their dynamic content library but also because it’s far easier to find the content and navigate on the portal. This eases the process for the viewers and adds to a great user-experience quotient. Improving the user experience will be a key factor for beating the competition and capturing market share in the OTT industry.
The OTT Hosting Industry Will Be the next Battle Ground
Most people are aware of OTT streaming services and the exponential growth that this industry is witnessing. This has led to a drastic increase in the competition as more people and businesses are aiming to bank on this growth. Minor players are growing popular by delivering unique content. Many young players are leveraging the OTT hosting solutions provided by top companies to manage their technical aspects for starting an ott business smoothly. However, there are plenty of service providers in this domain which is slowly turning into a battleground, given the increasing competition.
The OTT industry has revolutionized the media and entertainment industry by bringing diversity to video content. It has also provided more flexibility to the audience. 5G technology will further aid the growth of OTT platforms by providing viewers with an immersive visual experience through 4K videos. However, the competition will remain stiff and those focusing on improving the user-experience quotient will dominate in the long run. To make the most of this growing trend, one can choose OTT software from a reliable service provider to launch their own platform.