Over-the-top (OTT) services

Definition

Over-the-top (OTT) services refer to content distribution methods that deliver film and television content directly to viewers via the internet, bypassing traditional cable or satellite television platforms. This model has transformed how audiences consume media by allowing them greater flexibility and control over what they watch, when they watch it, and on which devices. The rise of OTT services is linked to significant changes in viewer behavior, economic models of television production, and global distribution practices.

5 Must Know Facts For Your Next Test

1. OTT services have grown rapidly in popularity, with platforms like Netflix, Amazon Prime Video, and Disney+ leading the charge in the global market.
2. These services allow for binge-watching by releasing entire seasons of shows at once, changing how audiences engage with serialized content.
3. The success of OTT services has prompted traditional television networks to launch their own streaming platforms, such as CBS All Access and HBO Max.
4. OTT platforms have more flexibility in content creation, often allowing for niche programming that may not fit traditional TV schedules or advertising models.
5. The global nature of OTT services means that content can be accessed across borders, leading to increased international competition and collaboration in the entertainment industry.

Review Questions

• How do OTT services alter traditional viewing habits among audiences?
  • OTT services significantly change traditional viewing habits by allowing audiences to consume content on-demand instead of adhering to fixed broadcast schedules. Viewers can choose when to watch shows, leading to binge-watching trends where entire seasons are viewed in a single sitting. This shift gives audiences more control over their viewing experience and caters to individual preferences.
• Discuss the implications of the rise of OTT services on traditional television networks and their business models.
  • The rise of OTT services has forced traditional television networks to reevaluate their business models as they compete for viewer attention and advertising revenue. Many networks have created their own streaming platforms to retain audiences who might otherwise cancel cable subscriptions. This shift not only impacts advertising strategies but also drives networks to invest in original content to attract and retain subscribers.
• Evaluate the global impact of OTT services on television production and distribution, considering both opportunities and challenges.
  • The global impact of OTT services on television production and distribution is profound, presenting both opportunities and challenges. On one hand, these platforms allow creators to reach broader audiences beyond geographic boundaries, facilitating international collaborations and diverse content offerings. However, this also leads to increased competition among producers worldwide, which can challenge local industries. Furthermore, regulatory issues concerning content licensing and distribution rights arise as OTT services operate across different markets with varying laws.

Related terms

Streaming: A technology that allows users to watch video content over the internet without downloading the entire file first.

SVOD (Subscription Video on Demand): A service where users pay a subscription fee to access a library of video content, such as Netflix or Hulu.

Cord-Cutting: The trend of consumers canceling their traditional cable subscriptions in favor of OTT streaming services.