Strategic entanglements of the digital era have changed the dynamics of the video streaming industry. This is especially for OTT services.
Over-the-top media services (OTT) are powering a new era of television. Consumers are no longer tied to or limited by cable TV packages. The video streaming platform has advanced by modifying formats, enhancing content delivery over networks. But is there room for you to compete among the Netflix and Hulu of the world?
Anything, Anytime, Anywhere
The rising penetration of mobile devices and internet connectivity has spread the mantra of ‘anything, anytime, anywhere.’ This is a key driver of OTT services’ success in every corner of the globe. For example, Statista reports that the total number of internet users in India is 560 million and is expected to reach 650 million by 2023.
This is to say nothing of the world’s current largest OTT market, the United States. It is anticipated to see a compound growth rate in revenue of 11.22% and approximately 2.25% in terms of subscribers over the forecast period.*
Thus, in line with the global trends and the interference of OTT services, serious attention should be paid to the way that consumers are increasingly consuming content across digital platforms
Post Covid-19
As stay-at-home advisories and lockdowns swept the globe in response to the Covid-19 pandemic, the entertainment industry saw a marked shift. Cinemas, restaurants and workplaces closed to visitors. Consumers found themselves stuck at home with little to do. In response, usage of online streaming platforms like Netflix, Amazon Prime, Hulu, etc. jumped.
Major studios were quick to respond. For the first time, major film producers are releasing their movies on a digital platform first. This brings huge options to the entertainment industry.
Game Of Content
The emergence of OTT platforms has empowered content creators an opportunity to showcase their work to the audiences. In the past, many creators did not get cinema screens or TV airtime to show their work.
Now content creators will no longer have to wait for prime time availability or depend on media houses for content distribution. We might see a rise of innovative content in the future. An increase in analytics can better indicate how consumers feel about the media they’re consuming in a shorter time.
At the end of the day, people want to watch good content on any given medium. So the future of OTT will depend on the content strategy. As more and more content spreads across different OTT services, it will be critical for platforms to ensure their carry enough ‘good’ content to make a subscription to them worth more than another platform.
Promising Future
Let’s draw our attention again to the example of the stark growth projected in India. According to KPMG Media and Entertainment Report 2018, the Indian OTT market is expected to grow 45% to reach ₹138 billion by the end of fiscal 2023.
According to a report by Ernst & Young, the number of OTT users in the country will reach 500 million by the end of 2020. That will make India the second–biggest market after the US.
Conclusion
So what does this mean for you? Looking at changing market preferences after Covid-19, rising penetration of mobile devices and the increased availability of content makes OTT a strong bet for the future. But, as the marketplace crowds, your margins for error grow ever slimmer. In order to rise above the smaller OTT media services that are currently emerging, you need to ensure that your service is being developed efficiently. Learn how DevOps can make or break your development project. Or, get experts in early for testing.
Particle41 can help you with both these and more. Book a call with us today to talk about your ideas, and we’ll offer no-pressure professional insight into what you need for your OTT service to succeed.