Over-the-top(OTT TV): What it is and how can it help your business?

Over-the-top(OTT TV) What it is and how can it help your business

People are changing from traditional cable TV connections to Internet-based streaming services for better accessibility. OTT streaming services are becoming more and more popular as a means of media distribution. Discover what OTT video platforms have to offer by reading the blog for the whole run here.

What is Over-the-top television(OTT TV)?

Over-the-top television(OTT TV) refers to watching movies, series, and TV video content online. Users can also pause and resume their favorite shows or videos whenever they want, as well as control exactly what they watch and when they watch it. Traditionally, cable and satellite pay-TV services were required to watch your favorite series and movies on your set-top box at home. In recent years, however, companies such as Netflix and Hulu have changed the way we consume entertainment.

Whenever we want, we can watch what we want. Video streaming service Netflix demonstrated that a successful video service can be delivered “over-the-top” of the public internet, rather than through expensive, closed networks of broadcasters and telecom providers. Netflix now has 95 million subscribers worldwide thanks to its disruptive model.

In addition to traditional television providers, OTT TV is now being used by an increasing number of large and small businesses. Take basic fitness, for example. As the European market leader in value-for-money fitness, Basic-Fit has more than 2 million members and 586 clubs. Additionally, they launched an online video platform.

Members can access the latest virtual group lessons through Basic-Fit’s video platform. Group Exercise Revolution (GXR) classes are about 20 to 40 minutes long and can be combined with other workouts. With their infectious enthusiasm and passion for sports, the best instructors from the sports and television industry will take you on an unforgettable journey.

Niche video on demand providers can also adapt to the changing market in a smart way. Consider Dalton’s OTT TV platform. The independent films they offer reach viewers all over the world. In combining TVOD, SVOD, and AVOD revenue models, there are many possibilities.

Create OTT TV content yourself to competitive the current market

In three years, live-linear streaming over-the-top (OTT) content will surpass traditional broadcast TV in terms of viewership hours. Now that the market is open, everyone wants a piece of it. There is nothing worse than not having your app on a popular TV service’s home screen. That’s why over-the-top is the hottest term in entertainment right now.

The market was soon flooded with major companies such as HBO and Amazon after Netflix. With its own OTT solution, Disney has also entered the OTT market. Through its service, Disney expects to make more money than through licensing its content to Netflix. The fact that they have a large niche market and have a lot of video content on their own could make that a very good decision.

The budgets are also increasing. Apple Inc. began operating in 2016, began to produce and distribute its original content. The company announced in 2017 that it would create its own OTT TV series and movies with a budget of $1 billion. It will allow them to create their own OTT productions with a lot of money. Netflix will invest 14 billion annually in its own OTT productions by 2021. Smaller parties will find it increasingly difficult to enter the market because of these large players’ interference. The niche segment offers plenty of opportunities. The technology is now more accessible to smaller groups than ever before.

Over-the-top content: Giving viewers what they want

You need content to become and remain a successful OTT player. Good content. The best-syndicated TV shows kept getting snapped up by cable channels, like Disney recently did, and Netflix quickly learned that content is expensive.

Creating content is by far the best way to accomplish this. The biggest advantage of OTT is that you can access a lot of valuable information from user data. To illustrate, let’s take a look at Netflix.

Analyzing Netflix’s viewer data, they discovered that people binge-watch serial dramas differently than sitcoms.

Netflix used House of Cards as a sort of testing ground for big data analytics in its first show. Their robust analytics revealed how much audiences enjoyed Kevin Spacey’s House of Cards, the British version, and director/producer David Fincher’s The Social Network.

They were certain the show would be a home run after seeing those three pieces of data. Without even having seen the pilot, they invested $100 million in the show. A third of the $300 million budget for original shows came from that fund. The company now spends 14 billion dollars annually on its own OTT content.

How do OTT platforms bring their content to the user?

An OTT backend or online video platform is used by all OTT platforms. An OTT platform’s backend typically handles all media, users, subscriptions, security, and rights. Communication between the backend and consumer devices is handled by the backend. As defined by the IAB, OTT devices are those capable of connecting to a TV to deliver Internet-based video content. As well as being called “connected TV,” they are also called “smart TVs.”

Smart TVs and Internet-connected gaming consoles are the most common hardware devices used for streaming (Apple TV, Chromecast, and Roku). As each device has its own development stack for creating apps, bringing your content to every device can be challenging.

User experience is becoming increasingly important as households begin streaming content across an increasing number of OTT TV apps.

OTT TV business models

In the same way that media companies have experimented with different business models throughout history, over-the-top TV services are likely to do so as well. Revenue models can be broadly divided into three categories:


Netflix, for example, is a subscription-based service. Hulu, Netflix, and HBO On Demand are some of the best known examples. For €9 per month, you can watch unlimited series and films. There are also several providers in the Netherlands, including Videoland On Demand, RTL XL, and Pathé Thuis.


Pay-per-view services include iTunes and Google that allow users to purchase individual pieces of content. Several cable companies in the Netherlands, including KPN and Ziggo, offer set-top boxes that play TV shows and films.


The majority of OTT TV services are subscription-based. Consumers are becoming less likely to rent digital videos as subscription streaming video options expand. It is expected that OTT revenue will decline by less than 5% to less than 5% from digital video rental (TVOD). There is a lot of potential in niche SVOD services.

Parrot Analytics suggests that niche SVOD providers can increase their audience size by partnering with OTT services, therefore increasing their chance of reaching the right audiences with their content. You can learn more about video business models by reading: Is it a subscription platform, an advertisement platform, or a TVOD platform? The choice of a revenue model.

Conclusion: OTT TV is going to dominate the market more and more

It is no secret that the OTT and SVOD industries are evolving and gaining a greater degree of commercial power every day. Content owners and service providers have a huge opportunity when they overcome technical challenges. Ensure that you are growing, producing great content, protecting your subscriber base, and increasing average revenue per user.

In case of any OTT strategy questions, please do not hesitate to contact us.




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