OTT Apps: The Game-Changer in the Streaming Industry
TV and streaming are certainly a huge part of our lives. It is the main method of entertainment that everybody loves and enjoys. The way we view and interact with such a method has changed throughout the years. Thus, the way people viewed TV in the 2000s was completely different from the way we view it now. This all can be credited to the emergence of the internet and the great technological advancements we currently live among. One of the common forms of TV and streaming that we use daily are OTT, or “Over the top,” applications. Bet this is the first time you’ve ever heard this term, right? Well, isn’t life a journey of constant learning? To discover all about OTT apps and how they emerged and became a major part of our daily lives, Continue reading this article!
The Evolution of Streaming and How OTT Apps Started
Let us start way back—not that way back, but like 25 years ago. The entertainment sector was at its peak, generating billions of dollars and basically going on a rollercoaster that is only going up. And the only concept of streaming and video on demand was through major video rentals like Blockbusters.
This peak period was in accordance with the emergence and rise of the internet, which served as a major opportunity. An idea appeared: why can't we take advantage of the internet's capabilities and accessibility to start offering streaming and DVD rental services through it? Well, obviously, this was one hell of an idea that quickly succeeded.
In a matter of years, what started as online DVD rental service platforms kept progressing and thriving until they were able to establish complete streaming service platforms where people could access and watch anywhere and anytime. After that, the term OTT services emerged. OTT, or over-the-top, is the method where platforms directly offer users various media formats, such as TV shows, movies, and so on, through the internet without interference or having to stick to what is on at the moment.
Later on in the 2010s, OTT platforms started taking on a new form that was so popular and still is. OTT apps started emerging, and for users, they were the ultimate convenient solution. The widespread availability of over-the-top (OTT) apps is largely responsible for the shift in the entertainment and streaming sectors. These apps have not only altered our entertainment habits but also largely affected the television business. Audiences are liberated from the constraints of expensive cable packages and predetermined viewing times thanks to on-demand streaming services. This change in consumer behavior has had a significant impact on the streaming industry.
Benefits of OTT Apps for Users and Businesses
OTT apps have revolutionized the way users consume entertainment. Not only for users but for businesses as well. So let us start with the users’ side first.
A.) For Users
Convenience
Over-the-top (OTT) apps allow users to stream their content of choice from any device, at any time. These apps provide viewers with an incomparable convenience. As they can be watching a movie on their smart TVs, watching another series on their smartphones, and streaming a live event on their tablets. And all this can be done at the same time as well.
Personalization
Using user data and powerful AI-powered algorithms, OTT apps can recommend content that will most likely appeal to a user based on their viewing and browsing habits. The result of this is a more interesting and personalized viewing experience for each individual user because they are more likely to find content that is relevant to them.
Cost-Effectiveness
Many over-the-top (OTT) app subscriptions are less expensive than the equivalent cable or satellite TV packages that people used to get back in the day. In this way, users can tailor their viewing experience to their individual needs and budgets by selecting from a number of different subscription tiers. Some OTT apps even provide free content in exchange for viewing advertisements, further lowering the price of media consumption.
B.) For Businesses
Now that we are done with the users’ perspective, let us explore the business perspective.
Global Reach
As they are distributed online, OTT apps can reach customers around the globe and provide businesses with access to a larger consumer pool. This completely opposes the cable subscriptions back in the day, which were limited to specific regions. This is especially helpful for content creators, who can now reach audiences all over the world without using traditional distribution networks.
A Powerful Direct-to-Consumer Relationship
The number one priority for any business is building a powerful relationship with its audience to increase retention. Luckily, OTT apps let companies interact directly with their target audience. Businesses can learn a lot about their customers' tastes and habits by monitoring their online activity and then creating content and advertising campaigns that speak directly to those customers. This guarantees a unique user experience that will keep the user loyal to the organization.
Monetization Opportunities
The monetization potential for businesses using OTT apps is vast. Advertising, pay-per-view, and partnerships are some of the many ways that businesses can make money besides subscriptions. With so many ways to make money, companies can pick the one that fits them best and start prospering.
Key Players in the OTT App Game
The OTT app market is highly competitive, with several key players dominating the industry. So, Let us take a look at some of the market's biggest stars below.:
Netflix
Netflix is arguably the most popular and successful OTT platform and app to ever exist. It is also a leader in such an industry since it was one of the first organizations to offer streaming services around the world. What makes Netflix special is its broad library of movies, TV shows, and other forms of great content. Netflix has also begun a new path with original content that another platform has adapted. I mean, shows like Stranger Things, for instance (aka the best ever), are now among the highest-grossing and most-watched TV shows, proving how effective streaming platforms can be.
Amazon Prime Video
When it comes to OTT apps, Amazon Prime Video is a formidable rival and has proven its powerful presence. Users of Amazon Prime can watch thousands of movies and TV episodes, plus exclusive Amazon productions, at no additional cost. Additionally, Prime has become extremely important for all sports lovers because it has the biggest sports section and exclusive access to leagues like the NBA.
Hulu
Hulu is a well-liked OTT app that provides both on-demand media and live TV broadcasts. The app has built a dedicated fan base thanks to its extensive library of popular TV shows, and movies, as well as following the path of previous platforms with high-quality original content. Users can watch new episodes of their favorite shows almost immediately after they air, thanks to the platform's partnerships with major networks.
Disney +
Disney Plus is considered the new player in the OTT app game. Despite its late appearance, it is a powerful one. The platform has one of the richest libraries of TV shows, movies, documentaries, and many more. This is due to Disney being one of the greatest companies in the entertainment sector, including thousands of companies below it. This helped them acquire a rich and enormous library of content that users can enjoy. Additionally, the Disney+ affordable price scheme made it an instant user favorite, as in what world would a platform have this amount of content and offer it at this great price? It is an offer you can’t refuse.
Current Trends in the OTT App Market
The OTT app market is constantly evolving, and several trends are poised to shape its future. Here are some emerging trends to keep an eye on:
Original Content
In the increasingly competitive OTT app market, original content will remain crucial to attracting and retaining users. I mean, we are witnessing fierce competition in creating TV shows and movies in almost the same genres at the same time. In order to set themselves apart from rivals, OTT app developers will pour significant resources into creating premium, original content.
Live Streaming
The OTT app market is predicted to grow as a result of the rising popularity of live streaming of sporting events, concerts, and other live performances. Live streaming satisfies users' craving for something immediate and thrilling.
AI and Personalization
Personalization features in OTT apps will be greatly improved with the help of AI. Which already has an integral part. Apps that stream media over the internet can improve the quality of their users' viewing experiences by incorporating artificial intelligence (AI) algorithms into their content recommendation systems. This will create a sense of reliability with users and, in turn, establish a powerful connection.
Virtual Reality/Augmented Reality
Surprised? Well, you shouldn’t. As virtual and augmented reality technology is proving its major presence by being implemented in all sectors, it definitely wouldn’t have missed the entertainment sector. Virtual and augmented reality are two of the semi-current and likely future trends for OTT apps. VR and AR technology have shifted the gaming sector by creating an immersive experience and allowing gamers to feel like they are a part of the game. Then why shouldn’t OTT apps do the same? With VR and AR, the audience can now experience movies and TV shows using certain tools and techniques that will make them feel as if they are part of the displayed media.
Challenges and Opportunities in the OTT App Industry
While the OTT app industry offers significant opportunities, it also comes with its fair share of challenges. Here are some of the challenges and opportunities that businesses in the OTT app industry face:
The first challenge is the great competition taking place. Competition in the OTT app market is fierce because new players flood the market on a regular basis. Businesses need to set themselves apart from the competition by providing customers with exclusive content, tailored recommendations, and an exceptional user experience.
Another major problem is licensing and purchasing content from networks. It can be difficult and expensive for OTT apps to acquire and license content. It takes a lot of time, effort, and skills to negotiate rights with content providers and mega networks and establish fair licensing agreements.
En Fin
It is great to see how far we have come in the entertainment sector. The episodes for which we have had to wait for weeks are now in the palm of our hands. Need to watch a certain movie? You don’t have to wait until it is aired at a random time or rely on harmful methods like pirating. All you have to do is open the OTT app and find whatever you are looking for.
OTT apps are still flourishing, and we will witness the emergence of more apps with different and advanced features. This wouldn’t have been possible without the help of new app development methods that helped developers save money and effort. For instance, no-code platforms like the nandbox app builder will allow developers to create the best OTT apps in the blink of an eye. With technological advancements, nothing is impossible anymore; even developing an app can now be done in minutes.