The OTT industry is on the rise. People cut the cord and switch to more flexible OTT services. They watch Netflix or Hulu instead of cable or satellite TV. In this article, we will talk about why they do that and how it can be profitable for businesses.
What is OTT? Check if you are interested.
Some statistics facts first
According to SkyQuest Technology, the global OTT market was valued at $45,1 billion in 2021. The company expects it to amount to $123,67 billion by 2028 with a 15,5% compound annual growth rate.
Moreover, the video streaming platforms operate well on many devices: from smartphones to Smart TVs. And according to Statista, mobile devices (except tablets) generated 54,4% of the global website traffic in the last quarter of 2021. For example, India is an example of a country where mobile phones are the primary device. The same situation is in Nigeria, Ghana, and Kenya. In the USA, mobile traffic amounts to 48% of all traffic in the country.
If we are talking about Smart TVs, Strategy Analytics predicts that around 1,1 billion homes worldwide will have a Smart TV by 2026.
So, why do people cut the cord and switch to these devices?
These devices maintain applications. An OTT app is what allows people to use their favorite services on many devices. They work on smartphones, tablets, laptops, and Smart TVs – on any device a company has obtained an application.
People buy Smart TVs to watch services like Netflix in full HD or even 4K quality if they like that. Some people don’t use Smart TVs, but they appreciate mobile phones. So, they don’t invest in TVs because OTT applications are available on mobile devices too.
These applications provide viewers with the following opportunities:
#1 To watch videos when they want
Cable or satellite TV has a schedule. If a person wants to watch a certain program, they should clear their own schedule to catch it. Otherwise, they miss it, and there is no way they can watch it later. Only if there is a replay that also is on air at a certain time.
With OTT apps, people can watch videos when they want to. These videos are usually pre-recorded and stored on servers. People will probably need to purchase access to them. But they will be able to view videos when they have time and mood for that.
#2 To watch where they want
The Internet does give many opportunities. People can use their favorite services and platforms anywhere with an Internet connection available.
They don’t need to be tied to one TV anymore. They can use any device and be anywhere. They can sit in a cafe and enjoy their favorite videos. They can be on a bus and watch what they like.
OTT applications provide a lot of flexibility and convenience in this case. People appreciate that.
How can businesses profit from that?
Suppose you have a video streaming service developing along with your other product or service. Companies tend to create such platforms to share their experience with other people. They create educational or any other video content and receive income from it.
They either let third parties advertise on a video streaming service, let people purchase one video per time, or offer people to subscribe for a fee.
If a business has only a website, it doesn’t cover people who prefer using mobile device applications or watching videos in full HD on a Smart TV. By implementing OTT applications into a video streaming business, a company can increase its revenue.
Conclusion
People cut the cord and turn to OTT services. They prefer them for plenty of reasons: flexibility, convenience, and a variety of content. A business can benefit from that a lot.
