OTT

Definition

OTT stands for Over-the-Top, which refers to the delivery of film, television, and other media content directly to viewers via the internet without the need for traditional cable or satellite TV services. This model has transformed the way content is consumed, allowing for greater flexibility and accessibility while impacting delivery requirements for various platforms.

5 Must Know Facts For Your Next Test

1. OTT platforms have become increasingly popular due to their ability to provide content on-demand, allowing viewers to watch what they want, when they want.
2. Major players in the OTT space include Netflix, Hulu, Amazon Prime Video, and Disney+, each offering unique content libraries and subscription models.
3. OTT services often require specific delivery formats and resolutions to meet the varying capabilities of internet connections and devices used by viewers.
4. The rise of OTT has led to changes in advertising strategies, with brands now integrating ads into streaming content rather than traditional TV spots.
5. As OTT continues to grow, traditional media companies are adapting by launching their own streaming services or partnering with existing OTT platforms.

Review Questions

• How does the OTT model change the way content is delivered compared to traditional television methods?
  • The OTT model changes content delivery by allowing direct streaming of media over the internet without the need for cable or satellite subscriptions. This means viewers can access content on various devices at their convenience, creating a more flexible viewing experience. Unlike traditional methods that follow a set schedule, OTT allows users to choose what to watch on-demand, which has significantly altered consumer habits and expectations regarding media consumption.
• Discuss the implications of OTT on advertising strategies for media companies.
  • OTT has led to a shift in advertising strategies as companies need to rethink how they reach audiences who are increasingly ad-averse or paying for ad-free experiences. Advertisers are now focusing on integrating ads within streaming content or utilizing targeted ads based on viewer data collected through online interactions. This approach requires a more nuanced understanding of viewer preferences and behaviors, making it crucial for media companies to adapt their advertising techniques to remain effective in this evolving landscape.
• Evaluate how the growth of OTT influences traditional media companies and their business models.
  • The growth of OTT significantly influences traditional media companies by forcing them to reevaluate their business models in light of changing viewer habits. Many companies are developing their own streaming services or collaborating with established OTT platforms to remain competitive. This adaptation often involves investing in original content creation and restructuring distribution strategies to meet audience demands for convenience and variety. As a result, traditional companies must balance their legacy operations with innovative approaches that cater to an increasingly digital audience.

Related terms

SVOD: Subscription Video On Demand, a service model where users pay a subscription fee to access a library of content that can be viewed anytime.

AVOD: Advertising Video On Demand, where viewers can watch content for free but are exposed to advertisements during playback.

Live Streaming: The real-time broadcasting of video content over the internet, allowing audiences to watch events as they happen.