The Success Story of OTT Platforms
OTT platforms got hugely popular during Covid era and rose to a new high as lockdowns forced people to switch from cinema halls to OTTs for entertainment. Ever since then, there has been no turning back for OTT platforms. Even filmmakers have realized the profitability of releasing their new productions on an OTT platform instead of the traditional premiering in movie theaters. Netflix was the first global OTT platform that came into existence in 2007, with many more following close behind.
What are OTT platforms?
OTT stands for ‘over-the-top’ and are direct-to-consumer platforms providing premium video content for superior experiences. While subscription-based video on demand (SVOD) OTT platforms reached its peak over the past few years, advertising-based video on demand (AVOD) are a comparatively newer model of OTT. As compared to regular TV, there are fewer ads on OTT AVOD and are considered more viewer-friendly. Popular OTT platforms include Netflix, Hulu, Amazon Prime, Disney+ Hotstar, Sony, etc. The best part is that their video content can be streamed on a vast array of internet-enabled devices including the indispensable smartphone!
Growth of Global OTT Platforms
Presently, OTT services are at a relatively nascent stage, but increasingly gaining popularity as a trending platform on a global stage. The world OTT market size was estimated to stand at $121.61 billion in 2019. At the rapid rate at which its growing, it is expected to reach $1039.03 billion by 2027 – from the pre-COVID-19 $171.36 billion share in 2020. This represents a CAGR growth rate of around 29.4% from 2020 to 2027. The industry is growing quickly and consistently, with its availability in multiple languages being a strong factor.
Even though North America dominated the overall market share in 2019, it’s the Asia-pacific region that is touted to grow at the highest CAGR rates now.
Reasons Why OTT Platforms are Growing
- Easy accessibility of stable, high-speed internet with affordable data plans has been one of the deciding factors behind the growth of OTT platforms and digital content consumption.
- Aside from enjoying media on the move, another big plus to watching digital content on OTT platforms is the absence of ads. This can be achieved at a nominal cost currently.
- The fact that OTT platforms are available in multiple languages has taken them to a larger audience base leading to greater growth in viewership. They are mainly popular among those between 15-35 years of age.
- Movies and shows are now available on OTT platforms long before they are broadcast on television. This makes OTT platforms more attractive for those who want to enjoy the content first.
- Another important factor influencing OTT popularity is their seamless digital viewing experience across multiple devices. Fans can opt for combined deals for viewing on both smartphones and home screens.
- OTT platforms provide more than just mobile media streaming. One can download videos in various languages to watch them offline on their devices and stream ad-free services for a reasonable price.
OTT platforms will continue to evolve further and grow in popularity in the years to come too!
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