How The Internet is Quickly Overtaking Conventional Media to Become the Primary Content Distribution Medium

Over-the-top (OTT) content is the term used to define the technology of transferring graphical images, audio, video and other forms of digital media content over the internet and completely detouring conventional content distribution mediums. The OTT technology usually refers to media and communication, which is cost-effective as well as user-friendly. OTT services, applications and content are being rapidly adopted in all walks of life and segment of commerce. Such technologies are bringing all sorts of disruption in the traditional industries at a fast rate. The modern consumers prefer online content over the traditional television; internet communication applications rather than the conventional telephone services. OTT technology allows users to download music and movies instantly on flash drives and devises such as smartphones and tabs. In addition, the process of searching and advertising for services is now quickly shifted to these online platforms. Latest data released by Future Market Insights (FMI) reveals that the global market for OTT content stood at around US$ 53.2 Bn in 2016 and is projected to expand at a compound annual growth rate of over 14% between 2016 and 2026.

OTT Content Market

High Speed Broadband Supporting Adoption of OTT 

Increasing penetration of high speed internet service coupled with a globally expanding smartphone and other internet enabled devices user base is characterizing the robust adoption of OTT application. Moreover, Factors such as more content options, attractive pricing, and addition of new features and advanced capabilities in modern devises are likely to support the further development of the global market for OTT. Thereafter, a change viewer preferences, which points a move towards customized content form the normal televised versions. OTT enables users to view or excess content anywhere anytime. Although, online piracy, low offline options, poor bandwidth in developing countries and several technical drawbacks remain a major challenge for OTT service providers. It has been observed that demand for video OTT content is significantly high. This is primarily owing to increasing improvements in high speed data service both in developed and developing countries.

OTT content is primarily accessed through smartphones and tablets. In the years to come, it is most likely that OTT content will be predominantly delivered through smaller and compact devices that have display screens. Currently, users prefer tablets and smartphones rather PCs or laptop for surfing the internet and hence such device are playing a crucial role in popularizing OTT content, which also include social networking and texting. However, the arrival of Smart TVs has encouraged a number of users to try out OTT services that based on smart TV, giving them an entirely new experience. Some of the leading companies that actively participating in the global market for OTT include Netflix Inc., Amazon.com Inc, Google Inc.,Akamai Technologies, LeEco., Apple Inc., Facebook Inc., Microsoft Corporation, IBM, and Limelight Networks. A number South Asian companies are also operating in the OTT content market such as Spuul, Viacom 18 Media Pvt. Ltd, Zee Entertainment Enterprises Ltd., Star India Pvt. Ltd., and Eros International Plc.

Abhishek Budholiya

Abhishek Budholiya is a tech blogger, digital marketing pro, and has contributed to numerous tech magazines. Currently, as a technology and digital branding consultant, he offers his analysis on the tech market research landscape. His forte is analysing the commercial viability of a new breakthrough, a trait you can see in his writing. When he is not ruminating about the tech world, he can be found playing table tennis or hanging out with his friends.