Over the top (OTT) is a term used to refer to content providers that distribute streaming media as a standalone product directly to consumers over the Internet, bypassing telecommunications, multichannel television, and broadcast television platforms that traditionally act as a controller or distributor of such content.
Over the top services are typically accessed via websites on personal computers, as well as via apps on mobile devices (such as smartphones and tablets), digital media players (including video game consoles), or televisions with integrated smart TV platforms.
The world over, millions are consuming over the top (OTT) content through varied platforms. In the last few years, OTT content, which can be described as a media that is delivered over the internet as an alternative to traditional media, has seen substantial prevalence when compared to conventional forms of communication.
The OTT content market is projected to grow at 14% CAGR during the forecast period (2017-2023).
According to Digital TV Research, global streaming video content (Over the Top OTT) revenues will reach USD 129 billion by 2023 up from current levels of USD 50 billion, demonstrating the substantial growth opportunities that lie ahead.
Personalized content has demonstrated to be extremely effective in reaching the target audience. Additionally, OTT content providers are making high quality original content that provides direct competition to content created and distributed on more classic forms of communication. Advertising is also moving online and using OTT content as a medium for reaching targeted audience. In the near future, the market is expected to embrace new entrants that will include TV content providers and traditional content providers, this can be attributed to the competitive pricing models that OTT content providers offer end users.
Key players are investing in innovative technology and development of new OTT content. It is likely that the Over the Top Content Market will see some cross over with conventional content providers joining in. New entrants may struggle to find footing without successfully distinguishing themselves from existing players,
however there is a lot of potential for growth in this niche market, which is expected to reach a valuation of USD 129 billion by 2023-end.