If you have not heard about OTT Media or OTT Video Marketing you are about to get an eye full.
OTT (Over-The-Top) video marketing has been around a few years now and we at SyncLab Media are excited to have been involved with providing production for OTT programs since 2017.
So what is OTT media?
Over the top (OTT) media service is a streaming media service offered directly to viewers over the Internet. OTT bypasses cable, broadcast and satellite television platforms that traditionally act as a controller or distributor of such content.[1]
The term OTT is most synonymous with subscription-based video on demand services that offer access to film and television content (including existing series acquired from other producers, as well as original content produced specifically for the service), including Amazon Video, fuboTV, Hulu, Netflix, Hotstar, Now TV, Sling TV, MercTV, and Sky Go as well as a wave of “skinny” television services that offer access to live streams of linear specialty channels similar to a traditional satellite or wireline television provider, but streamed over the public Internet, rather than a closed, private network with proprietary equipment such as set-top boxes.
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 TVplatforms.
An “over-the-top” media service is any online content provider that offers streaming media as a standalone product. The term OTT also refers to audio streaming, messaging services, or internet-based voice calling solutions.
More importantly, OTT media services circumvent traditional media distribution channels such as TV networks or cable television providers. As long as you have access to an internet connection — either locally or through a mobile network — you can access the complete OTT service at your leisure.
OTT services are typically monetized via paid subscriptions, but there are exceptions. Most OTT platforms might offer in-app purchases or advertising.
So who would best benefit from OTT Video Marketing?
Any currently producing a video podcast, or a podcast that is evolving to becoming a video podcast should consider making the jump to OTT video marketing. The bottom line: There are far more people watching OTT stations.
Case Point: Over 50% of North Americans maintaining a Netflix subscription, it’s clear consumers love OTT content. Here are just a few reasons why the format is more appealing than traditional alternatives:
- Original content: In recent years, OTT providers like Netflix, Amazon Prime, and Acron TV have begun producing original content that is exclusively available through their service. Platforms like HBO Go and Disney+ also have exclusive streaming licenses for previously televised content.
- Low-cost High-value content: Streaming services like NetFlix are widely considered a cost-effective alternative to traditional cable packages. A Netflix HD subscription is currently $12.99 per month, while non-HD plans cost $8.99. $126 a year is a reasonable fee even if you only intend to watch a fraction of NetFlix’s offered content.
- Special Interest Entertainment: Coming on strong are the OTT Channels like BingeNetwork.TV and Women’s Broadcast Television Network
that offer special interest type programing. - Compatibility with multiple devices: Since the early 1980s, watching cable television required a television set. Today, OTT programs can be watched from a broad range of devices. Anyone who has a gaming console, smartphone, tablet, or smart TV can watch OTT media.
Higher Quality Production Required
Of course, going along with the change in viewers demand in only watching well-produced content, OTT Video Marketing requires a much higher level of quality video production. However, the rewards make the additional investment worth it.
Worth the Investment
Don’t want to bore you with stats, but!!!
- There are over 200 OTT providers in the U.S. (Digiday)
- As of 2019, there are 182 million OTT subscription video service users in the U.S. (eMarketer)
- The top five OTT services by the number of subscribers are (Adweek):
- Netflix
- Amazon Prime Video Users
- Hulu
- HBO Now
- Starz
- The U.S. has over 820 million connected video devices (Video Advertising Bureau – VBA)
- 71% of internet users also use OTT services (VBA)
- 47% of US Wi-Fi households own a streaming box/stick (Marketing Charts)
- On average, 49% of internet users use an online video subscription or a network tv app at least once a week (VBA)
- OTT users access video content on three devices across three different OTT services on average (OpenX)
- According to eMarketer, 55.1 million people will no longer watch traditional pay TV by 2022
- The most viewed content on Netflix and Amazon Prime are recent movies, while the top type of content viewed on Hulu is a network TV series (VBA)
- Out of the top 20 most streamed shows in 2018, only one was not on Netflix and Hulu’s The Handmaid’s Tale is No. 5 on the list (Forbes)
- The number streamed show in 2018 was Netflix’s “13 Reasons Why” (Forbes)
- New OTT service contender, Disney Plus, will offer the lowest subscription fee at just $7 a month
- Nearly 500 scripted shows were created for streaming services in 2018, surpassing basic cable and broadcast (Medium)
- Millennials spend about 7 hours a day watching videos on their phones
- Half of US adults over 18 use at least one OTT service (OpenX)
- While watching a program, two out of every three people use a second screen to look up information about a product they saw during that program (Adweek)
- 33% of people watch online videos on a Smart TV, with video-enabled apps as compared to 23% who use a video game console (Statista)
- Viewing time of traditional TV has dropped, with 18-24 year olds representing the largest decrease of just 25 minutes per day (MarketingCharts)
- Millennial parents are more likely to use live TV, averaging around 3 hours and 16 minutes of watch time per day; in contrast to childless and independent Millennials who spend the most time (1 hour and 32 minutes) using a TV-connected device (MarketingCharts)
- When it comes to gender, women slightly watch programs more by using connected devices (70% vs. 62%) and VOD (66% vs. 64%) than men (Nielsen)
The OTT industry is exceeding expectations.
According to Magna EVP of Market Intelligence, Vincent Letang, who stated that the “…penetration and consumption of OTT homes in the US grew faster than we thought.”
What’s also interesting is that more than half of the U.S. uses some type of OTT service across all ages and that number is only predicted to grow significantly.
One thing to note here is the use of multiple devices to consume this content which means leaders must use analytics and know where to provide the content on the devices most popular with their customers.
Contact SyncLab Media to learn more about OTT Media Services and OTT Video Marketing. synclabmedia.com
