OTT Trends
By: Shivani Dua
Tags: Digital Marketing, Trends, Content Writing, OTT, Content

“55.1 million people are expected to chop the cord by 2022.” — eMarketer

OTT streaming services are attracting 71% of internet users which makes it almost urgent to take a position in integrated video platforms for distributing and monetizing original and curated content. With a ballooning content production, the organization of content both on the users’ end and back-end system should be the priority.

Global Media And Entertainment Trends

“33% of people watch online videos on a Smart TV with video-enabled apps and 23% use a video game console.” — Statista

But Why Are People Moving To OTT?

According to a study by Telaria and Adobe, people retain traditional screens to stream their favorite live sports, events, and news. But with telecom services like Verizon, AT&T, T-Mobile, and Sprint rolling out 5G internet plans in the US, video OTT platforms now have the bandwidth to deliver UHD streaming for these niches too.

The global trends are pointing the same way.

The Indian Finance Minister Nirmala Sitharaman while presenting the Budget for 2020 proposed to allocate Rs 6,000 crore for the BharatNet program which will be a shot in the arm for broadband connectivity, especially in the rural areas. While India is keen to welcome 5G, the task before the policymakers are to ensure that the telecom infrastructure and related technologies support its divergent demography, economic conditions, and shifting market trends. In response to the favorable technology and investment climate, platforms like Netflix, Amazon Prime Video, Disney-owned Hotstar, and Zee5 are making a beeline to the Indian OTT video audience.

Data consumption has seen a steep rise within the last three years as a mirrored image of cheaper Internet data costs, says Amitabh Kant, CEO of the policy think factory NITI Aayog.

Subscription Fatigue

Global OTT revenues are predicted to succeed in $129 billion by 2023. Despite SVOD being the general streaming services trend, it is building up to a saturation point leading to a new phase in the Internet lexicon — Subscription Fatigue. People have finite entertainment budgets and SVOD services are easy to cancel. These factors make it more prone to churn.

‘47% folks consumers say they’re frustrated by the growing number of subscriptions and services required to observe what they need .’ Deloitte survey.

The OTT viewing trends are, nevertheless, more promising to commercials than Television viewers. The OTT platforms themselves allow advertisers to better target their ads to specific demographics or types of consumers who are likely to be interested in their products or services.

Latest Applications

The first experience of VR and AR was in gaming and entertainment. But research shows that the development of enterprise extended reality (ER) solutions is growing fast. 65% of the companies surveyed said they are working on industrial applications.

AR is ready to ascertain a 38% annual growth in healthcare by 2025.

Applications in healthcare are expected to ascertain many use cases in 2020.

Virtual reality (VR) has is being adopted in treating patients with phobias and anxiety disorders. Combined with biosensors to monitor physiological reactions like heart rate and perspiration, therapists can understand how patients react to stressful situations in a safe, virtual environment.

VR is additionally utilized in helping people diagnosed with autism develop social and communication skills. Patients with visual or cognitive impairments can also be diagnosed and treated.

Augmented Reality is often employed by surgeons within the theater and in training to alert them to risks or hazards while they’re working.

Global Vs Local Competition

If you think that the lion’s share is going to be retained by global OTT content providers, you’re pleasantly off the mark!

Indian music streaming services app company, Gaana has used a hyperlocal approach and competitive pricing to offer stiff competition to Spotify, Apple Music, YouTube Music, and Amazon music service. It draws 152 million monthly users, completely half of Spotify’s worldwide market share.

Netflix, Disney+, Amazon Prime, and Hulu are already in a race for market share. But now they need to also compete with Bollywood powerhouses who are luring users with almost free offers.

Hotstar built its base by streaming cricket matches. The Los Gatos, a California-based firm is proposing a mobile-only service at but half the standard subscription rate, and increasing expenses on local content quicker than in any other market.

Conclusion

The OTT landscape goes to be during a churn with the introduction of 5G internet and therefore the vistas that it exposes. While sustainability and margins are the proverbial elephants within the room, innovative services are pushing media and entertainment trends in favor of OTT streaming platforms.

Despite the multiple services available within the market, the video streaming market still has the capacity to soak up viewership. Breaking into the scene with a new video OTT platform is not as difficult as you imagine. Explore the way to build an OTT platform customized to grow your own brand.