The influence of traditional media is dwindling. Viewers want more control and options over what they watch. Over-the-top (OTT) content delivery is the alternative taking the world by storm. Hence video streaming via OTT content providers such as Netflix, Hulu, and YouTube TV are more popular than ever.
In this ultimate guide, we cover what OTT platforms and technology are. We discuss how it works and how it’s changing the media industry. Furthermore, we discuss why you should use OTT and provide examples of successful businesses built on an OTT platform. To conclude, we compare IPTV and OTT.
Table of Contents
- What is OTT Technology?
- Why Use OTT?
- How is OTT Delivered?
- How Does OTT Technology Work?
- How OTT Technology is Changing the Media Industry
- IPTV vs. OTT
- OTT vs. Streaming
- Core Components of OTT Technology
- Detailed Workflow of How OTT Technology Works
- OTT Protocols and Streaming Technologies
- Role of OTT APIs
- Challenges in OTT Delivery and Technological Solutions
- Comparison of OTT vs. Other Video Technologies
- OTT Technology Trends and Future Developments
- How to Implement OTT Technology for Your Business
- OTT Monetization Models
- FAQs
- Conclusion
What is OTT Technology?
So what exactly is OTT streaming? Over-the-top (OTT) streaming is a media distribution method where content is distributed over the internet instead of through traditional television accessed via satellite or cable television connection.
What is OTT technology? It is the software and equipment that make it possible to broadcast content over the internet instead of through traditional television.
What is OTT broadcasting? OTT broadcasting just refers to the process of distributing media over the internet instead of through traditional television. With OTT broadcasting, you can access content through any internet-enabled device.
What is an OTT video? OTT video specifically refers to the video content you watch over the internet instead of satellite or cable television.
OTT is all about going around or “over the top” of traditional media distribution channels and accessing content through the internet. OTT services are often monetized through paid subscriptions, but they can also use advertising or in-app purchases to support their broadcasting efforts.
Why Use OTT?
Wondering why as a broadcaster, you should jump onto the OTT train? The main reason is that people love OTT content. You can look at one of the biggest OTT providers, Netflix, which now has 221.64 million subscribers.
OTT isn’t just about huge content providers. Many sports organizations, for example, now offer league passes so fans can access games and content for their favorite teams no matter where they live.
Examples of OTT sports content include big names like ESPN+ and more league-specific content such as the NBA League Pass, Premier League Pass, F1TV, and DAZN. Many college sports organizations also have their own OTT content.
People love OTT content because it is easy to access and can be targeted based on one’s viewing preferences. Broadcasters should use OTT strategies for over-the-top because it allows access to a larger audience, as there are fewer barriers to accessing OTT content than traditional TV content.
How is OTT Delivered?
OTT platforms use an internet-based delivery system. That means that all someone needs to access the content is an internet connection and a compatible device. Here are some of the most common devices people can use to access OTT platforms:
- Mobile devices: You can use either a smartphone or tablet to download OTT apps from a digital storefront, such as Google Play or Apple App Store.
- Personal computer: With a computer, you can access OTT content through a web browser or desktop-based apps.
- Digital media players: Third-party devices such as Chromecast, Apple TV, and even video game consoles can download OTT apps and access content.
- Smart TVs: Smart TVs now come with numerous pre-installed OTT apps and the ability to download additional OTT apps.
Essentially, if you have an internet connection and a device that can access the internet, you should be able to access OTT content.
How Does OTT Technology Work?
While accessing video via OTT is typically more convenient for viewers, what goes on behind the scenes of OTT streaming is a bit more complex than traditional broadcasting.
Here is how OTT technology looks in action:
- Broadcasters upload video content to an OTT video hosting platform
- The video host transmits the data to remote servers via a content delivery network (CDN)
- Viewers select the content they want to stream on the user-facing video gallery
- The video player on the device pulls the video content from the CDN’s server with the internet
With that process in mind, let’s briefly break down the technologies involved.
With that process in mind, let’s briefly break down the technologies involved. This will help you understand precisely how OTT technology works and what is meant when someone says OTT technology.
OTT Platform Technology
First and foremost, OTT streaming requires a professional-grade video hosting platform with OTT capabilities. OTT platform technology typically comes in downloadable software or an in-browser streaming tool.
Some OTT platform technology is open source. However, the most popular options include a graphical user interface that allows broadcasters with any level of experience to navigate OTT broadcasting easily. With the right OTT platform technology, this highly technical process becomes accessible to those with limited to no technological know-how.
Video hosting platforms come with various tools for hosting, storing, and managing video content at different price points. Some hosting features valuable for creating your own platform include OTT model monetization, gold-standard security, HTML5 video players, white-label capabilities, brand customization, and API access.
Some of the most innovative OTT platform technology is available via Dacast, Vimeo OTT, and Brightcove. We recommend looking at our comparison of the 10 Best OTT video hosting providers for more information on this specific piece of OTT technology to find the platform that works best for you.
Content Delivery Network
OTT media distribution is made possible by content delivery networks.
A content delivery network (CDN) is exactly what it sounds like a network of servers that delivers content. Most online video platforms partner with professional CDNs, so this isn’t typically the main concern for broadcasters. To release content over an OTT, you need a content delivery network to move that content to your end viewers.
You’ll want to ensure that your chosen video hosting platform uses a CDN with servers stationed around the globe. This will help maintain the quality of your stream for viewers in every corner of the globe. It will also help avoid lagging and buffering.
However, if you are self-hosting, you must choose a CDN of your own. Due to complicated CDN pricing structures, this can get expensive and confusing, so choosing a video hosting platform with a built-in CDN is the way to go. A built-in CDN makes it easier to engage in OTT video distribution.
Internet Connection
A strong internet connection is another important piece of the OTT technology puzzle. Broadcasters need a reliable internet connection to send out their video signal, and viewers need fast internet to access content on your OTT platform, as well.
The ideal upload speed for OTT streaming is 672 kbps to 61.5 Mbps. For high-quality streaming, your internet speed should be about double your intended bandwidth usage.
You can check your internet speed by searching for an “internet speed test” on Google. Be sure to pay attention not to your download speed, which is what most people focus on when looking at internet speed, but to your upload speed.
Regarding appropriate download speeds for viewing OTT content, there is a bit of variety in what is considered “good.” The recommended speeds depend on the quality of the video the viewer is trying to access.
The recommended download speeds are broken down as follows:
- 25 Mbps: sufficient for streaming 1080p HD video
- 10 Mbps: sufficient for 720p video
- 5 Mbps: sufficient for 480p video
Most viewers access OTT content with their in-home WiFi, and viewers on the go will tune in with their cellular data. In-home WiFi is typically more reliable, but cellular data can work, as well. With different download speeds based on in-home and on-the-go access, you will want to look into adaptive bitrate or multi-bitrate streaming for the best experience for your viewers.
App with Embedded Video Players
To make your OTT video content easily accessible to viewers, you need to build a platform that displays your library of video content and can embed your video player to stream your content online. Many OTT platforms offer desktop, Smart TV, and mobile versions to maximize compatibility and accessibility.
Make sure that the professional video hosting platform you’re using offers API access and mobile SDKs to create a platform that perfectly suits your audience.
Internet-Enabled Device
This may seem like a no-brainer, but an internet-enabled device is a non-negotiable for OTT streaming. Viewers need to have a device that they can use to access video players on your OTT platform.
We will dive a little further into this shortly, but OTT video can be accessed on computers, Smart TVs, and more.
How OTT Technology is Changing the Media Industry
OTT technology has played a massive role in the media industry’s evolution. It is leading viewers worldwide to “cut the cord” on cable. About a quarter of cable users will have cancelled their subscriptions by 2022.
Access to OTT technology changes the traditional television-watching experience in a few different ways. For starters, viewers can access their favorite shows and films from just about any device with internet capabilities.
The ability to sign in to your OTT streaming platform account on different devices allows you to access your subscriptions from anywhere in your house without worrying about special wiring or hookups.
You can also access the subscriptions or videos you’ve purchased if you’re on vacation by signing in on your smartphone, laptop, or tablet. The flexibility that comes with cutting the cord is so convenient, and it allows viewers to get the most out of their subscriptions.
OTT streaming brings exciting developments for broadcast sports fans in particular. With traditional television, some games are only available in certain regions. Other areas are total blackout zones due to their proximity to multiple major cities. With OTT, you can watch your favorite sports team from anywhere in the world.
A major OTT trend that has grown alongside the industry is binge-watching. Netflix and other platforms release entire series of seasons at a time, as opposed to the airing of weekly episodes that traditional TV uses. This has inspired people to binge-watch shows out of excitement or fear of the plot being spoiled by family, friends, or other users on social media.
OTT technology has influenced the way that we consume video content.
An OTT platform means more access to more content all the time, around the globe.
Examples of OTT Devices
OTT technology has changed how video content is accessed. As we mentioned, there are quite a few OTT devices, which is convenient because viewers aren’t restricted to their television set if they want to watch a film or show.
Here are a few specific examples of OTT devices:
- Smartphones: iPhones and Androids
- Tablets: iPad, Amazon Fire, Microsoft Surface, Galaxy Tab A
- Smart TVs: Roku TV, Apple TV, Amazon Firestick, Chromecast
- Gaming Consoles: XBOX, Play Stations
Although most OTT platform providers are designed and marketed as a replacement for traditional television, over half of OTT viewers tune in from their mobile devices. OTT technology works on any type of device when paired with an HTML5 video player. Mobile viewing continues to increase and replace traditional television viewing, with OTT video helping to fuel this trend.
Examples of Businesses Built Upon OTT Technology
Pretty much all of the major streaming-as-a-service platforms that consumers know and love are powered by OTT technology. Some examples are Hulu, Disney+, Prime Video, and Netflix.
Each of these businesses monetizes its content in slightly different ways.
Netflix, which started as a video rental company, is probably one of the most notable businesses that have evolved to accommodate the shift towards OTT broadcasting. Netflix adapted its model from DVD rentals to online video streaming throughout the past decade. They stayed on the cutting edge of OTT technology to launch their streaming service as soon as the internet became more accessible and bandwidth costs were affordable.
Today, Netflix generates over $20 billion in revenue yearly from its subscription-based OTT streaming platform.
Prime Video uses a mix of subscriptions and pay-per-view monetization. Prime Video offers access to a library of films and television series to those with an Amazon Prime membership. Still, a large chunk of their content is only available at an added cost. Viewers can rent movies and shows to watch right on the platform.
Hulu uses a combination of advertisements and subscriptions to monetize its platform. Users can pay extra to upgrade to ad-free streaming. Hulu also offers upgrades for access to live-streamed programs and channels with linear streaming.
Disney+ is available via subscription on its own, but the platform has strategically partnered with different platforms, including Hulu, to reach a larger audience. Another one of their partners is ESPN+, which is popular among different demographics. However, these bundles are priced right, making them attractive to families with members with other interests.
Video OTT can be packaged and priced in many ways, as evidenced by the above examples.
IPTV vs. OTT
While we’re on the topic of OTT technology, let’s clear up a common confusion in online video streaming. Many people wonder what the difference is between IPTV and OTT. The two are very similar and seem identical on the surface, so this is a valid question.
IPTV is short for “Internet Protocol Television,” and it is another alternative to traditional television that uses the internet to stream. The main difference between IPTV and OTT streaming is that IPTV uses a closed server and OTT does not.
IPTV is also typically very similar to traditional television because it primarily uses linear broadcasting. It is generally packaged as a channel rather than access to an extensive library of content. On-demand streaming is possible with IPTV, but it is not nearly as popular as OTT.
It is very popular for large enterprises and organizations to use IPTV for internal video hosting and delivery, whereas streaming services like Netflix and Hulu rely on OTT.
OTT vs. Streaming
OTT technologies and traditional streaming services both deliver content online, but there are key differences. OTT (over-the-top) platforms offer direct access to video content over the internet, bypassing cable or satellite providers. Examples of OTT in media include Netflix, Hulu, and Disney+.
You may ask, How does OTT work? It works by using the internet to stream content directly to users on any device, such as smart TVs, smartphones, or tablets. How OTT platform works is through content delivery via apps or websites, without needing a broadcast service.
When comparing OTT vs streaming, streaming is the general process of delivering audio or video in real time, while OTT platforms provide more control over the distribution and monetization of content. For a deeper understanding, refer to an OTT guide to see how this technology is transforming media consumption.
Core Components of OTT Technology
OTT video technology powers the delivery of content directly to viewers over the internet. The OTT platform architecture consists of several critical components. First, video encoding and transcoding are essential for compressing videos while maintaining quality. This ensures smooth playback across various devices. Streaming protocols like HLS and MPEG-DASH are used to deliver content over OTT networks, allowing for adaptive streaming and high-quality viewing experiences.
An OTT video CMS (Content Management System) helps manage, organize, and distribute content efficiently. Content monetization is another major element, with methods like subscriptions, ads, and pay-per-view enabling revenue generation for OTT streaming services. OTT distribution ensures that content reaches a wide audience, making it accessible globally. For further insights on OTT in media and answering questions like what is the difference between OTT and IPTV, explore a detailed OTT guide for a larger overview.
Detailed Workflow of How OTT Technology Works
To understand how OTT platforms work, let’s break down the process from content creation to delivery.
1. Content Ingestion: The first step in OTT video technology involves capturing or uploading video content to the platform. This content could be live or pre-recorded.
2. Cloud Transcoding: Once ingested, the video goes through OTT content processing. It is transcoded in the cloud into multiple formats and resolutions to ensure compatibility across different devices (smartphones, tablets, TVs).
3. Content Delivery via CDNs: After processing, the video is distributed through CDNs (Content Delivery Networks. These servers store and deliver the content closer to the viewers for smooth streaming and reduced latency, which is critical for OTT video streaming services.
4. Viewer Delivery: Finally, the transcoded content reaches the viewer’s device through the OTT content distribution process. The viewer can access the content on-demand, anywhere, anytime.
This workflow allows seamless and efficient delivery of high-quality video to users on various devices across the globe.
OTT Protocols and Streaming Technologies
OTT technology powers the delivery of video content directly to viewers via the internet. This bypasses traditional cable or satellite systems. Key OTT video technology includes various streaming protocols and methods to ensure smooth content delivery, even under varying network conditions.
HLS (HTTP Live Streaming)** and RTMP (Real-Time Messaging Protocol) are two popular streaming protocols used in OTT video streaming services. HLS is favored for its ability to deliver high-quality video across different devices, while RTMP is known for its low-latency streaming, often used in live broadcasts.
Adaptive Bitrate Streaming (ABR) is a vital part of OTT content distribution, dynamically adjusting video quality based on the viewer’s internet speed. This ensures a seamless viewing experience, even with fluctuating network conditions.
And to protect content, Digital Rights Management (DRM) is essential. It safeguards copyrighted materials during OTT content processing, ensuring that content is secure from unauthorized access or piracy. Together, these OTT tools form the backbone of modern streaming, delivering high-quality video securely and reliably across the globe.
Role of OTT APIs
APIs play a crucial role in OTT media services. They allow for seamless integration of OTT content delivery into various platforms. These APIs enable businesses to customize their digital OTT solution by embedding them into websites, applications, or even what is an OTT device, such as smart TVs and streaming devices.
In the OTT industry, APIs are essential for creating a smooth user experience, enabling viewers to access streaming OTT content easily across different devices. With APIs, businesses can tailor their OTT media services to meet specific needs, from managing subscriptions to delivering personalized recommendations. As a result, APIs help improve efficiency and enhance the overall user experience, ensuring that OTT content delivery is flexible and scalable across multiple platforms.
Challenges in OTT Delivery and Technological Solutions
OTT video services face several challenges in delivering high-quality streaming experiences. Latency is a common issue, where delays between real-time events and the stream frustrate viewers, especially during live broadcasts. Another challenge is scalability during live events, as a sudden surge in viewers can overload servers, leading to buffering or outages. Managing various devices is also complex, as viewers use different smartphones, tablets, and smart TVs, each with unique requirements.
Modern OTT technology addresses these problems with advanced solutions. Edge computing reduces latency by processing data closer to users, speeding up delivery. Adaptive bitrate streaming improves scalability and user experience by adjusting video quality based on the viewer’s network conditions and device capabilities, ensuring smooth streaming regardless of bandwidth fluctuations or device specifications. These innovations significantly enhance the reliability and flexibility of OTT video services.
Comparison of OTT vs. Other Video Technologies
Over-the-top technology has transformed the way we access video and audio content. Unlike traditional broadcasting, which relies on cable or satellite networks, OTT delivers content directly over the internet. This allows viewers to watch shows and movies on demand, making it a popular choice for consumers seeking flexibility.
In contrast, IPTV also streams video content over the internet but usually requires a subscription through a service provider. This can limit access compared to OTT, which can be accessed through various devices without a subscription
Traditional broadcasting, such as terrestrial or satellite TV, offers limited interactivity and content choice. Viewers are often tied to fixed schedules. By contrast, OTT platforms allow users to watch content anytime, anywhere.
Hybrid models combine elements of both OTT and IPTV, providing a mix of live streaming and on-demand content. While these technologies offer different benefits, OTT stands out for its convenience, user control, and extensive content library, making it a preferred choice for many viewers today.
OTT Technology Trends and Future Developments
The OTT streaming industry is constantly growing and evolving, driven by several key trends. One significant development is the impact of 5G technology, which enables faster internet speeds and lower latency. This improvement allows users to enjoy high-quality video streaming seamlessly, even on mobile devices.
Also, cloud-native streaming platforms are gaining popularity as they offer greater scalability and flexibility, allowing content providers to adapt quickly to changing demands. Furthermore, edge computing is becoming essential for reducing buffering times by processing data closer to users, improving the viewing experience.
Another exciting trend is the rise of personalized content experiences powered by artificial intelligence (AI). AI algorithms analyze viewer preferences to recommend content tailored to individual tastes, improving user engagement and satisfaction. These trends indicate a bright future for OTT technology, which makes it an exciting time for both providers and viewers alike.
How to Implement OTT Technology for Your Business: A Guide
Implementing OTT technology can enhance your business by delivering video content directly to your audience. Here’s a simple step-by-step guide to get you started:
1. Choose the Right Platform: Research and select an OTT platform that fits your business needs. Look for features like video hosting, analytics, and monetization options.
2. Plan Your Content: Determine the type of content you want to offer like live streams, on-demand videos, or both. Ensure you have the necessary rights for all content.
3. Select a Content Delivery Network (CDN): Choose a reliable CDN to ensure your videos are delivered smoothly and quickly to viewers worldwide. Look for scalability options to accommodate audience growth.
4. Set Up Your Branding: Customize your video player and platform to reflect your brand identity. This includes logos, colors, and other visual elements.
5. Test Your Setup: Before launching, conduct tests to ensure everything works correctly. Check video quality, streaming speed, and user experience.
6. Launch and Promote: Once you’re satisfied with your setup, launch your OTT service and promote it through your marketing channels to attract viewers.
By following these steps, you can effectively implement OTT technology to enhance your audience’s experience.
OTT Monetization Models
OTT content providers have various monetization models to generate revenue while delivering engaging video experiences.
1. Subscription Video on Demand (SVOD): This model allows users to pay a recurring fee for access to a library of content. Popular platforms like Netflix and Disney+ use SVOD to ensure a steady income.
2. Advertising Video on Demand (AVOD): In this model, content is free for viewers, but ads are shown during the programming. Platforms like YouTube utilize AVOD, making it accessible to a wide audience while generating revenue from advertisers.
3. Transactional Video on Demand (TVOD): Here, users pay for individual pieces of content, such as movies or episodes. This model is common on platforms like iTunes, where customers can rent or buy specific titles.
4. Hybrid Models: Combining elements of SVOD, AVOD, and TVOD, hybrid models offer flexibility for content creators and viewers. This approach allows providers to maximize revenue while catering to diverse audience preferences.
FAQs
1. What is OTT?
OTT stands for “over-the-top.” This refers to content delivered directly to viewers via the internet, rather than by traditional cable or satellite services.
2. How does OTT work?
OTT works by streaming video content through apps or websites on devices like smart TVs, smartphones, or tablets. This allows users to access shows and movies at any time of day.
3. What’s the difference between OTT and streaming?
While streaming refers to the delivery of content over the internet, OTT refers to bypassing traditional distribution channels.
4. Do I need a subscription for OTT services?
No, not always. Some OTT services are subscription-based (SVOD), while others are ad-supported (AVOD) or offer pay-per-view (TVOD) options.
5. What types of content are available on OTT platforms?
OTT platforms offer a wide variety of content. This includes movies, TV shows, documentaries, and live sports.
6. Is OTT content available worldwide?
Availability can vary by region, as some platforms may restrict access based on licensing agreements.
Conclusion
With OTT, broadcasters can create profitable streaming services and deliver video on demand that viewers crave. Delivering high-quality video content partnered with an HTML5 streaming video solution will bolster your professional presence.
Looking to build a professional, top OTT platform of your own? Look no further than Dacast. Dacast’s professional-grade OTT platform technology has the tools you need to host and deliver incredible OTT content. Using HTML5 video player and partnered with top-tier CDNs, Dacast provides the best possible OTT broadcasting experience.
You can try Dacast completely free for a full 14 days.
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