Technology has always been the driving force of entertainment. So the trending wave of OTT should come as no surprise to observers of the industry.
As per research data, video streaming reaches roughly 332.2 million subscribers. Combined with an upsurge of regional streaming services and the launch of new platforms from media houses such as Disney, OTT streaming is the new Pay TV.
What drives this wave for OTT companies?
“This is the biggest shift in the content business in the history of Hollywood,” producer Jason Blum said at a virtual huddle organized by the New York Times. Their message to the movie industry was clear: Adapt or die.
With a rising number of consumers preferring OTT, there is a spurt in the number of OTT platform providers streaming audio and video content. Most online streaming content providers are creating original and high-quality content that reflects on consumer preference for online video channels. The OTT ad spends, predicted to 31% higher by 2020, is a testament to the confidence in the medium.
A spike in mobile users and internet accessibility is expected to push up video streaming users to 82% of Internet traffic by 2022. OTT providers are partnering with mobile operators for a larger share of the revenue pie that is worth an estimated $129 billion by the end of 2023. With big names like Discovery entering the OTT landscape, the pie is growing.
Food Network Kitchen was launched in 2019 and focused on “live, interactive cooking instruction” from culinary experts, 800 on-demand classes and a library of recipes.
Even giant media houses like Disney are cashing in on this wave by launching their own OTT platforms. The launch of Disney+ was met with a response that crashed the service on the first day! Industry analysts predict that Disney would hit 90 million subscribers by 2024.
WarnerMedia, the American media and entertainment mogul, is also set to launch HBO Max, an online content streaming provider on 20 May 2020 with 10,000 hours of content for $14.99 a month.
With more and more players appearing on the OTT landscape, there is an apprehension about it being saturated. But the consumer shift to OTT is not a death knell, but a wake-up call. An ever-growing demand for original content across multiple platforms is an assurance that there is always room for creative platforms.
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