How OTT (Over-The-Top) is Different from Video?

The term ‘OTT’ has been consistent with a plethora of products and services that stream content to users via the Internet as a replacement for pre-existing infrastructure. If you are looking to build a business in TV or video, understanding OTT inside and out is of paramount importance.

In this blog, we will discuss how OTT is different from regular TV and video.

But what is OTT? Is it different from other types of media? If yes, then how?

Over-the-top is more like a complex world that keeps changing by the minute. And this innovative technology is ubiquitous – existing everywhere – right from streaming giants, including Disney Plus and Netflix to modest video startups. In other words, it consists of any web or app-based online streaming device, including YouTube, Netflix, and many more.

OTT and video are interlinked. They, however, are not the same thing. In fact, it is a different channel through which end users receive video content and other related video advertisements.

Video: This content can be viewed across any device, such as computers, televisions, cell phones, OTT devices, and more.
OTT content: This is the content that comes from an OTT content provider (for example Sling TV). It can be viewed on a multitude of devices, including computers, OTT devices, mobile devices, etc.
OTT devices: Any device that isn’t desktop, laptop, or mobile but is used for consuming OTT content. Some examples consist of Apple TVs, Chromecast, SmartTVs, Xbox, PlayStation, and more.

How does OTT seem different from TV and video?

OTT (short for over-the-top) distinctively refers to video, which is streamed via the Internet. Traditional TV methods like cable or satellite certainly don’t fit in this umbrella. That is because they require several various types of equipment as well as infrastructure.

Related Reading: 10 Effective Ways to Boost Your Internet Connection

What does OTT include?

Over-the-top (OTT) video viewers: These viewers are individuals who watch videos via any app or website that provides streaming video content and evades traditional distribution. Some examples include Amazon Video, HBO Now, Hulu, YouTube, and many more.
Connected TV (CTV)/Internet Protocol TV (IPTV) users: All the individuals who use TV sets that are connected to the internet through integrated internet connectivity (Smart TV) or through other devices with the functionality. These include a set-top box (STB) devices, like Apple TV, Amazon Fire, Google Chromecast) gaming consoles, or Blu-ray players.
Linear OTT video service users: Users who subscribe to a service delivering live TV channel bundles over the Internet for a monthly subscription. Sling TV, YouTube TV, Hulu with Live TV, and Playstation Vue are some examples.

OTT’s Revenue Models

The majority of OTT video providers extensively rely on one of the three major revenue models:

SVOD: SVOD (short for Subscription Video on Demand). This model in services like Amazon Prime, Hulu, and Netflix. It caters to all those users who pay at regular intervals for an account, granting unlimited access to the full content catalog of the service.
TVOD: Acronym for Transactional Video on Demand, illustrated by services like Amazon Instant Video and iTunes. It depends on users whether they are wanting to purchase permanent or limited access to individual content pieces.
AVOD: Advertising-based Video on Demand. Usually free and ad-supported channels such as Crackle or YouTube, where ads served combined with easily accessible video include not only the production but also content delivery costs.

How does OTT video work?

By influencing the robust consumer broadband connections of today, OTT video puts the marketplace of shows at the fingertips of viewers. You can now select and play the programs you are looking to watch, and choose when and how you want to watch them.

Rather than bearing the cost of unwanted bundles channels and pay for a committed delivery avenue, over-the-top media acts more like any other action which you usually take with your internet connection – such as surfing the web, logging into social media, or downloading an email attachment.

Online video may seem like a complex world at first. But it does not seem scary at all.

This cutting-edge technology poses a great opportunity to several companies in the industry. It has taken over the way we consume TV as well as media. OTT will be like a game-changer in various industries, like retail, health and wellness, and education.