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How OTT is changing the Dynamics of the Media Industry

Sreejata Basu Published on : 17 March 2022
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The global OTT market is expected to reach over US$ 2,673 million in 2022 according to Statista. OTT has successfully leveraged the internet infrastructure to deliver content directly to the viewers bypassing the loopholes in the traditional distribution and media networks. This gives them much more flexibility in choosing the content they want to consume and the time at which they want to access the content. In this blog we will analyze how OTT is constantly changing the dynamics of the media industry.



OTT Video Streaming Market Growth


How OTT is changing the Dynamics of the Media Industry?


The growing popularity of OTT media platforms has also made it the preferred choice for broadcasters to deliver their content to the targeted audience. Lets see how OTT is changing the entire media landscape.


OTT Platform Helps Build Direct Connection with Customers


Initially, broadcasters used to rely heavily on traditional distribution methods like cable and DTH platforms to distribute their content to viewers. The advent of OTT media streaming has made it easier and more convenient for broadcasters to directly showcase their content to customers directly without the intervention of middlemen. 

This helps build a direct relationship with the users on the OTT platform. It also helps them create a strong brand image and improves brand recall. In addition to showcasing content directly, broadcasters can also obtain detailed insights about how users are interacting with their content with the help of analytics. Data-driven approach helps them churn out better content especially tailored to their customers’ preferences. 


Seamless Content Viewing Experience across Multiple Devices

One of the most pronounced reasons the OTT industry is making advances in how they provide their services is because of the hugely improved customer user experience (UX) that they offer. One of the ways of achieving this is offering seamless content viewing experience over a variety of devices and platforms. 

With OTT, it’s more convenient to stream and watch content. Viewers can watch whatever they like at their preferred timings on their preferred devices. A seamless viewing experience across multiple devices and platforms is a must-have for OTT platform owners who want to build a sustainable following and audience base. A multi screen OTT experience is one of the main reasons for the streaming industry to gain an ever growing customer base. Sadly, a traditional cable network can barely cut the mustard.

Muvi helps you launch a personalized multi channel OTT experience across websites and apps!


OTT is the Top Option for Advertisers

You will be amazed to learn that the total ad spend for OTT platforms is forecast to exceed $300 billion and the global ad market over $700 billion. As the popularity of OTT platforms is growing among the audience, advertisers want to showcase their products on these platforms to obtain quality traffic and a suitable audience. This helps to increase their marketing ROIs and also leads to higher conversion rates based on user behaviors and preferences.


OTT has Led to More Cord Cutting

With the exponential growth of OTT video streaming, the competitive dynamics of the OTT vs pay TV war have changed greatly. The most obvious losers due to these tectonic shifts in content consumption are traditional broadcasters and cable TV operators. Cable TV operators are losing subscribers because of high prices and lack of comparable choices leading to the phenomenon known as “cord-cutting” that has made drastic changes in the broadcasting market. Nearly half of US 22-45-year-olds don’t watch traditional TV at all and it’s estimated that there will be 55 million cord cutters in the U.S in 2022.


Cable TV Operators Joining Hands with OTT

The constantly increasing numbers of cord cutters have led to the downfall in revenue for traditional cable TV broadcasters who are now seeking innovative ways to lure back their viewers. Due to the immense popularity of video streaming amongst millennials, traditional TV and film giants are now seeking to join Netflix and Amazon. Their bet is that, considering  the growth of OTT video streaming services, it’s better to be part of the streaming industry and benefit from it rather than trying to fight an OTT vs pay TV battle they seem to be losing. NBCUniversal, Disney, and Warner Media have already introduced their own OTT video streaming services, increasing the competition and prices for legacy shows.


OTT is Powering Emerging Technologies

As emerging OTT video technologies are utilizing artificial intelligence (AI) to enhance the customer experience. By using AI to determine what customers actually want to watch, OTT service providers can earn more revenue and deliver more personalized experiences to retain customers.  An excellent example of this, Netflix revealed that it has saved $1 billion a year with AI technologies. 

Also emerging technologies like 5G synonymous with high speed and ubiquitous connectivity will ensure OTT experiences like never before that don’t keep buffering, lags behind annoyingly, or unwanted pixelation. 5G powered OTT will give a massive boost to both live streaming and VoD with its 10x decrease in end-to-end latency, 20X faster speed, and higher bandwidth. 


Wrapping Up,

OTT is here to stay and with more and more broadcasters opting to go OTT, it will continue to dominate the media and entertainment industry. As a content creator, it’s high time you realize how important it is to ride on this wave unless you want to lose out in the long run. Between the ongoing Pay TV vs OTT battle, The viewership is gradually escalating on the OTT side, giving you a green signal to not miss this golden opportunity of directly showcasing your offerings to your viewers.

At Muvi, we believe that  the OTT video streaming industry will provide new opportunities for broadcasters and cable providers to grow their reach. 

Join the OTT bandwagon with Muvi One’s feature-rich platform that can help your videos look amazing with cloud encoding, adaptive bitrate streaming and many other exciting features to help you create the highest quality viewing experiences on every device or platform, be it mobile or the web.

Did you know that with Muvi, you can launch your very own OTT Video-on-demand website/app across 20+ platforms, without writing a single line of code?

Take a 14-Day Free trial to get better clarity!

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Written by: Sreejata Basu

Sreejata is the Manager for Muvi’s Content Marketing unit. She is a passionate writer with a background in English Literature and music. By week Sreejata spends her time in the corporate world of Muvi, but on weekends she likes to take short hiking trips, watch movies and read interesting travelogues.

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