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Video On Demand And Its Impact
On Television
As Over the Top (OTT) video platforms revolutionise the way the world
Netflix, are fast replacing traditional televised content. With a $25 billion
ahead.
satellite mediums.
Content ecosystems around the world are being affected in several ways.
If you examine the global OTT landscape, youll find over 500 broadcasters
technology space: HBO, Netflix, Amazon, Hulu and YouTube. About half the
revenues generated by the global OTT market are ploughed in by these five
brands alone. With their financial heft, scale, and technology, the big five
Media Shift
Through OTT, media can proliferate to new markets and audiences. With
shackles of time and location-based viewing. And broadcast houses can now
Cultural Shift
Though this shift is largely intangible, the advent of large OTT players is
OTT reflects content offerings in the television kitty, plus a little more.
differentiate OTT from traditional television. But thats not all. Because of
block.
Amateurs
regular intervals. They are the newest members of the content ecosystem.
Professional Amateurs
and The Young Turks. Pro-ams arent backed by studios or media houses,
accomplished with time. There are several enablers in the online market
today, that help pro-ams set up their own OTT platform. Streamhash, a
cutting-edge framework that has made a name for itself in tech circles, is
set up an OTT website within just two days, and its fabulous interface
Media houses have fuelled television content for decades now, and have
remained largely unchanged in their approach over the years. The content
media houses are the only content creators that were around in the
television age.
VOD. However, as the sector matures, and new broadcast models emerge,
VOD is branching out. With live streaming now a firm inclusion on many
digital and social media platforms such as Facebook and Twitter, the term
VOD, has become redundant. Here are some revenue models in OTT that
Advertising-Led Content
zero subscription and no hidden charges. The service may offer a vast
advertisers, who pay the service in exchange for on-demand air time for
the on-demand nature of the business. MyVideo and Hulu are classic
Transaction-Led Services
Subscription-Led Services
movies and television shows, for a monthly or annual fee. The consumption
services.
essentially the same price points as television. Many of the players in this
category have a foothold in television already and are entering the OTT
changing face of the consumer market. There have been three significant
Space Transformation
Walmart to pick out the latest chartbuster. With OTT platforms, brick-and-
mortar formats arent the only means to quality content. Consumers can
have the capacity to grow their library to millions of tracks. Translate this
that consumers have quick and easy access to a vast labyrinth of content.
Time Transformation
set at an exact time to catch a specific feature or show. With OTT, non-
nonlinear, and it is projected that by 2018, the US will lead the way in
acquire and upload seasons at one go, providing users with content en
masse.
Device Transformation
rapid multiplication of devices has laid the foundation for users to receive
mobile devices, and statistics show that viewership through mediums other
than television has increased by three hours per week, since 2009. Two
interesting trends have emerged from this shift. One, increased video
consumption has broadened the video industry because OTT players arent
yet clawing into conventional video broadcasts. Two, mobiles and small-
videos, trailers and stories. Television shows and movies are still favoured
possible even for small players with reasonably priced frameworks, such as
Streamhash.
The top OTT players in the market have sealed their spots through unique
strategies for both revenue and cost. Their revenue strategies are
highlighted below.
OTT bigwigs have the machinery to tweak content to suit local markets.
They also ensure that content is globally relevant as they close new deals
and collaborations.
With more experience and new markets, large OTT players leverage
customer churn by 0.9% between 2008 and 2014, and scaling its base to 75
million users.
are some ways the biggies of OTT manage their costs effectively:
The main challenge for OTT players is to acquire content for as many
markets as possible. A large OTT player, however, can easily weave in extra
write off its fixed costs over a smaller tenure. In turn, this means that the
player can invest money into relevant business areas, such as original