The media landscape has changed drastically while the Over-The-Top (OTT) platforms have emerged, which has truly changed the way we read. Video, audio, and other media transmitted directly over the internet by OTT platforms, bypass traditional distribution channels like cable and satellite television. It is a techno-cultural transition by which the media industry is turned on its head. Based on the results, factors such as the growth in media & the entertainment sector, expansion of OTT platforms, together with an increased demand for VOD (video-on-demand) content are the main reasons for the increase in media & the entertainment industry. According to the report of Consegic Business Intelligence, the Interactive Advertising Market is expected to grow to USD 122.31 Billion by 2030 from a level of USD 40.31 Billion in 2022, which denotes a mighty 15.3% CAGR from 2023 to 2030.
The Evolution of OTT Platforms
OTT platforms had their beginning in internet streaming back in the day but it only came to their prime a bit later in the 2010s. Netflix was an old-school DVD rental service before it transformed its business model by leading the way for the OTT service through streaming services. Other big names became the competition such as Amazon Prime Video, Hulu, and Disney+, which have made available great content as well as original programming.
Changing Consumption Patterns
Instead of the traditional model of scheduled programming, on-demand viewing, which allows users to watch content anytime and anywhere, is now becoming a dominant trend. This has been particularly well-received by younger people who are attracted to convenience and flexibility. The idea of “binge-watching” has become a whole new experience, where watching one whole season of a TV series is just a click away.
Impact on Traditional Media
The Clayton Christensen model is considered an innovation disruptor because of over-the-top (OTT) platforms. There has been a significant descent in the subscription numbers of cable and satellite access services as people chose to discontinue them and switch to other less costly and more easily available streaming services. Earlier, this development had a bearing on traditional TV networks which were compelled to innovate, most of which introduced their streaming services to outdo each other in the market. For example, many established networks are laying out their game plans to get a share of the streaming audience such as HBO Max being a project of HBO Networks while Peacock is a product of NBC’s attempt.
The Power of Data and Personalization
The rise of video streaming services on the internet has not only facilitated personalization but has also led to the collection and analysis of a large amount of data for enhancing user experience. The platforms collect enormous sets of data based on individuals’ preferences and usage patterns, predicting what the viewers would like to see more of and showcasing such content. The way is to protect users’ genealogy and to lessen the time for making the right movie or series where the majority of the users will be concentrated.
Challenges and Opportunities
Being in the streaming field provides a variety of opportunities for the players in the market but at the same time, it imposes certain hardships as well. The market has become too replete with video streaming companies, which, in turn, become overly competitive. The race to get these new items is increased by the companies as they attempt to provide unique, high-quality programs. Thus, the screenwriter would get a substantial compensation.
On the other hand, content piracy is another concern. Nowadays, pirates acquire copied movies through streaming sites, and file-sharing has become more popular. That is, by entrusting a highly qualified team to implement technology standards, as well as to set up highly secured data centers with high-speed private networks, the company protects end-users from hackers and digital rights violators. Program participation is the first quantitative part of the analysis, the film will be a highly-anticipated hit if there are qualitatively high assumptions that confirm it as thought.
The Future of OTT Platforms
OTT platforms are likely to be a trend in the future as the technology is getting better and the public is now consuming digital content more. The usage of artificial intelligence and machine learning will also be an added dimension to this as personalization and content discovery will be part of it. Furthermore, the OTT platforms conquering the other end, i.e. the emerging markets, where internet and mobile penetration is rapidly increasing, will open up new opportunities for them to reach earlier unattended audiences.
Interactive and immersive content, which is in the form of virtual reality (VR) and augmented reality (AR), could be another significant development that might take the OTT space by storm. These innovations are interactive and can bring a new dimension to the viewer’s experience.
Conclusion
The advent of OTT platforms has indeed kept up with the changing media landscape and found a way out of the technological developments, which allow for a unique user experience, customization, and a wide range of content. The industry will continue to grow and evolve and as such incumbent traditional media companies need to find new ways to innovate and remain relevant in this fast-paced digital era. The future of the entertainment industry is in the hands of the ones who can best apply technology in the way it will be most needed by the audience that is by its very nature always changing.
Source: Consegic Business Intelligence: Interactive Advertising Market