The landscape of video streaming and OTT platforms has witnessed a massive transformation in recent years. The adoption of streaming services has further escalated due to the COVID-19 pandemic. In fact, the global OTT market will be worth $194.2 billion by 2025, growing at a CAGR of nearly 14%.
Also, nearly 27% of U.S. households are projected to jump on the bandwagon of cord-cutters in 2021. It’s not surprising that many content publishers and media houses are taking the plunge and introducing their video streaming services. If you’re planning to launch an OTT platform in 2021, expect to face stiff competition.
If you want your video streaming app to make a mark, you must understand where the OTT industry is headed. In this blog, we’ll delve into the top trends related to VOD, streaming, and live broadcasting and explore the future of OTT.
Let’s get started.
1. 5G - A Key Driving Force behind OTT Adoption
Ease access to high-speed internet and the affordability of smartphones has amplified the growth of OTT platforms. That trend will gain further traction with the introduction of 5G connectivity. The sky-high speeds offered by 5G make streaming videos with 4K resolution on mobile devices a reality.
It’s worth noting that 29% of consumers are willing to pay a premium for 5G in exchange for better quality video and reduced buffering.
Image via PwC
In the coming years, the prevalence of 5G will likely skyrocket the adoption of OTT platforms. Despite the rise of connected TVs, 5G will continue to increase mobile OTT viewership. Also, it’ll help OTT service providers penetrate remote areas with limited connectivity.
2. Localization of OTT Content
Improved internet penetration has helped OTT platforms attract viewers from developing nations, including India. Also, it has taken OTT viewership beyond the urban metropolitan cities. Many viewers on the leading OTT platforms now hail from Tier II and Tier III cities.
If you want to cater to such a diverse audience, you must understand the tastes and preferences of different audience segments. Also, it’s imperative to develop regional content that resonates with the aspirations and struggles of youngsters in smaller towns and villages.
The trend has already been picked up in India, where leading OTT platforms create high-quality content based in small cities. From relatable characters to regional dialects -- content creators in India are focusing on telling stories from the Hindi heartland.
3. Immersive Live Streaming Possibilities
Live broadcasting of sports, award ceremonies, and other events on OTT platforms is a remarkable shift from traditional TV. From broadcasting a cricket league on Disney+ Hotstar to live streaming an award ceremony on Facebook -- we’ve seen it all. So, it won’t be surprising if more OTT media houses and publishers experiment with this content format.
What’s particularly interesting is how live broadcasting on OTT will match the cable TV experience. The use of 5G will make it possible to live stream high-resolution videos with minimal latency. It’ll even make 360-degree live streaming more readily accessible, too. Also, virtual reality (VR) technology will make the viewing experience more immersive and entertaining.
4. UX and Personalization Will Take Precedence
With a growing number of OTT platforms hitting the market, retaining viewers will be a challenge. Offering great subscription packages and top-notch, original content won’t be enough. Platforms with intuitive interfaces, intelligent search options, and personalized content recommendations will emerge as winners.
If you’re planning to launch an OTT platform now, leverage machine learning (ML) to analyze your subscribers’ viewing habits and preferences. Use artificial intelligence (AI) to identify collective-behavior relationships between content that may not be organically related. Make sure that the platform delivers a seamless and synchronized user experience across different devices.
Building an OTT Platform
While the future of OTT looks bright, it’s going to become an increasingly competitive industry. With established names, such as Disney and HBO launching their OTT platforms, newcomers will have trouble finding their footing. OTT service providers must use cutting-edge technology to enhance the user experience and live stream high-quality immersive content.
Ready to attract a wider audience by creating an OTT app? Check out our solutions for OTT content owners and creators and schedule a demo of our platform today.