The term used for the delivery of film and TV content via the Internet is OTT, or over-the-top and does not require users to subscribe to traditional cable or satellite TV. Want to operate your own OTT video service? Here is a glimpse at what to keep in mind.The term used for the delivery of film and TV content via the Internet is OTT, or over-the-top and does not require users to subscribe to traditional cable or satellite TV. Want to operate your own OTT video service? Here is a glimpse at what to keep in mind.
Supported OTT video delivery protocol(s)
Below are some formats on how OTT video is delivered to your device today.
- Apple HLS (77.9%)
- Apple HDS (42.5%)
- Smooth Streaming (38.6%)
- RTMP (37.5%)
- MPEG-DASH (28.6%)
Content Delivery Network (CDN) delivery strategies
- Multi-CDN (43%)
- Single CDN (29%)
- Internal CDN (19%)
(Data from respondents from companies operating 0, services -multiple 8 single choice questions)
Technical challenges in offering OTT services
Part of the reason OTT did not develop more quickly than it did vs traditional cable was due to the tech challenge of delivering large amounts of content over the web. Today, we have that capability.
Quality of service and experience, bandwidth limitation, player/UI functionality, device support, search/discovery functionality, security, scalability, player window for live linear content, and traffic spikes are all big challenges still faced with offering OTT services today. Some areas just don’t have the capability of providing the bandwidth needed, some countries are poor and residents do not have access to required devices, and others prone to hackers and attacks.
As with everything else available on the Internet, one of many crucial aspects is maintaining OTT security strategies across all networks & devices. Some of these security elements to consider include:
- DRM (multiple and single schemes)
- Access control
Devices & Apps – Potential points of delivery?
Distribution of streaming video is still a challenge in 2016 but getting better and better as more streaming devices become available on the market and as broadband connections improve in areas that once did no have good service.
Devices that streaming video can reach
There are numerous devices out on the market today that streaming video can reach. Smartphones have majority share of the market at almost 70%, followed by tablets at 50%, and PC’s and laptops at 40%. Smart TV’s 14%, Apple TV 9%, Google Chromecast 8%, Roku 8%, Amazon Firestick 3%, Tivo 1% and Boxee 1% and new and upcoming devices also have a good amount of users using their devices. Sticks and boxes 31%, are currently used more than Smart TVs at 14%, but these numbers are continuously changing as TV’s now ship out with Smart TV functionality.
Devices that apps can reach
Devices that can support apps include the following:
- Tablets (90%)
- Desktops/Laptops (88.6%)
- Smartphones (87.1%)
- Internet/Streaming STB (55.4%)
- Smart TVs (47.1%)
- Game Consoles (33.2%)
Business – Where does the revenue come from?
Revenue from OTT comes from subscriptions and monetization. The US online video market is by far the largest, bringing in 8.5 billion in 2015, with projected growth of 50% every year.
Part of the reason OTT did not develop more quickly than it did vs traditional cable was due to the tech challenge of delivering large amounts of content over the web. Today, we have that capability and are seeing it spread more and more.
OTT can largely be broken down into three different revenue models:
- SVOD (subscription-based services such as Netflix and Hulu)
- AVOD (free and ad-supported services such as Crackle and Hulu)
- TVOD (transactional services such as iTunes, Vimeo On Demand and Amazon Instant Video that allow users to pay for individual pieces of content).
While in 2016, it is still easier for most households to keep the existing model of paying their cable provider, people are more and more converting to the streaming video and on demand model, like Netflix. Besides Netflix, here are some others:
In this dynamic market a modular, variable and open solution that meets all of the specific requirements – today and tomorrow – will be vastly superior to a static, proprietary backend.
Infographic brought to you by Siemens Convergence Creators
Related: Future of IPTV