When was the last time you rented a DVD from the local video store? Or phoned in to order a pay-per-view program?
If you can’t remember—you’re not alone. The way we watch TV has shifted over the last decade, and a lot of it is attributed to OTT. OTT TV, more commonly known as “over-the-top TV,” allows viewers to stream their favorite shows and watch events on-demand from our sofas.
In this article, we will be covering the following topics:
- What is OTT TV, and how does it work?
- How is OTT TV used today?
- The future of streaming with OTT TV
- Why you should start your own OTT TV app
Let’s get started.
What is OTT TV, and how does it work?
OTT (over-the-top) TV is a service that allows customers to stream videos and on-demand virtual events whenever and however they like.
Two decades ago, when television providers first introduced OTT, it was a box placed on the top of your TV and enabled you to hook up satellite or cable TV. Now, OTT TV allows consumers to install apps like Netflix, Hulu, and Disney+ to access hundreds of thousands of programs whenever they like.
Not limited to TV programs, people now use OTT TV to work out at home, attend virtual events and even go to church.
Part of OTT TV’s appeal is how we can mold OTT to fit into our lives in ways that were impossible before:
- Portability. We can consume OTT content in bed, in cars, on the balcony, and even on the toilet seat.
- Versatility. We can watch it on our laptops, tablets, or any mobile device that connects to the internet.
- Flexibility. No more missing out on episodes of our favorite TV series. If we want to binge-watch the entire first season of Grey’s Anatomy at 2 am—we can.
- Performability. Gone are the days of paying for extra cable channels and special events. OTT TV subscriptions give us unprecedented access to the content we want to consume.
In short, OTT TV has put consumers back in charge of what they want to watch and how they will do it.
How is OTT TV used today?
OTT TV has rapidly changed how we view content.
Improvements in technology, our viewing habits, and overall societal changes (hello, Peloton!) have meant that OTT TV isn’t the same as when it first launched. Rather than Netflix or Hulu dominating OTT TV, smaller companies like local yoga studios and entertainment providers are now looking at the space to monetize their content.
So, why the push for brands to pivot to OTT TV?
It’s simple. Brands are simply giving people what they want.
OTT subscriptions in the US alone are expected to increase by 50% by 2025, meaning over 300 million people will be paying for some type of OTT content within the next three years. If that isn’t enough, 80% of US consumers are already paying for some form of video streaming service. That number has skyrocketed during the COVID-19 pandemic—streaming has increased by at least 12% since the start of the outbreak.
OTT TV also gives companies plenty of options to monetize content. For example, a traditional performing arts center can go online and earn revenue by offering:
- Video-on-demand (VOD) content library. For regular patrons, the center could offer a membership. Customers can have access to specific performances, and those willing to pay for a premium subscription will unlock special promotions and the entire library of on-demand content.
- Live PPV of one-off seasonal performances. A one-off performance of The Nutcracker? A special production for Easter? The performing arts center may offer one-off tickets for theater-goers who only want to catch a couple of shows a year, so people only pay for the shows they want to watch.
- Sponsorship. Like any other charity event, non-profit organizations can attract donations and sponsorships to earn revenue during broadcasts.
The move online is here to stay.
Our generation is settling into a new normal, where we go to the gym in our living rooms, take a morning meeting from our office on Zoom and stream our favorite artist in concert on our big screens. This shift isn’t short-term. It’s a life-changing shift for more streaming.
As our changing viewing habits become more permanent, brands need to accept this new normal and prepare for how OTT TV will impact their business models in the future.
The future of streaming with OTT TV
OTT TV is giving even the smallest brands an opportunity that was unthinkable a decade ago—they can now grow their customer base and monetize their content from anywhere.
All businesses, from health and fitness to entertainment and faith-based organizations, recognize that OTT TV will allow them to reach audiences that couldn’t be reached before streaming.
Yoga teachers, for example, are capitalizing on the pivot to digital classes by reaching a broader audience than they ever could’ve done from their studios. When COVID-19 forced yoga studio Y7 to close its doors in early 2020, the company had no choice but to stream its classes online to survive.
The studio now hosts over 200 classes, and subscribers have access to more than 16,000 hours of content that they can watch when it suits them. It also opened up unexpected revenue sources for the brand as they also use their online streaming site to sell merch to their clients.
And it’s not just fitness companies that have found success in pivoting to OTT TV.
Teachers are now educating students online and selling their knowledge to those who want to learn a new skill. The entertainment industry sees the writing on the wall and is offering its audience the option to watch concerts and events from anywhere.
Even traditional industries like the theater and opera realize OTT’s power. For the Toledo Alliance for the Performing Arts, showcasing their new season online generated buzz from views in over 20 states and even internationally within the first month of launching.
Now, more than 1700 people from 10 countries tune in to their weekly live-streamed performances.
President and CEO Zak Vassar said for 80 years, the center never changed the way it operated. Now, thanks to OTT, the value of performances extend beyond the last note of a concert, and each program has a longer life cycle.
“The product we create can be watched live, rented, paused, rewound,” he says.
“When we finish a concert, we usually leave it online for a month or two, so people can engage with it and re-watch it, and we can attract new audiences to that content.”
The best part about all of this is how easy it is for a brand to start using an OTT TV app. Let’s get started 👇
Why you should start your OTT TV app
The easiest way to create an OTT TV app is to invest in a dedicated OTT solution.
OTT TV apps are hubs that creators can use to host content and allow subscribers to access it whenever they like. While any brand can launch its own OTT channel, you should have at least some type of foundation in place to support it:
- A content library. While you don’t need thousands of pieces of content to launch, having at least 60 videos is a good benchmark to get you started. Without something to offer customers to watch as soon as possible, it’ll be an uphill battle to turn them into subscribers.
- An existing audience. Got an existing audience on YouTube? A growing following on Instagram? Great! Converting these followers into paying customers will help grow your OTT channel and its revenue.
- A unique content offering. Are you creating content that no other brand is? Offering exclusive or niche content is ideal for engaging a targeted audience and building up a following for your OTT TV channel.
- An organized content pipeline. Creating content consistently is key to a successful streaming business. Releasing new videos is the best way to grow a subscription channel once it’s launched.
If you have some of the foundations in place to launch an OTT TV app, this process usually happens in four phases:
- Setup. Think about the type of app you want and what logos, branding, and monetization model(s) you will use.
- Build. Either code the app, use a template, or hire developers to create a custom platform to house all of your content.
- Test. The app is then tested for functionality to discover bugs. This step is to quality control anything that might have been missed during production.
- Submit. The final step is submitting your app to various platforms for download. Once it’s accepted, you are ready to launch.
However, creating an OTT app from scratch can be daunting, especially if you don’t know how to code or you have a limited budget to spend.
With the right OTT platform, these steps can be taken care of for you.
An all-in-one OTT TV solution like Vimeo will help design, build, test, and submit the app for you—in under 30 days. Vimeo can also take care of the not-so-obvious parts of launching an app, like monitoring user engagement and testing navigational elements, to ensure your clients have a great experience every time they use it.
Wrapping up
We’ve scratched the surface of what OTT TV is and how it’s changing the way we consume media, but the main takeaway here is for smaller content creators: now is the time to get in on all of the action.
Here’s a quick recap of everything we’ve discovered:
- The viewers are driving what content they want to see. Whether it’s taking a virtual exercise class in their living rooms or watching a Netflix documentary at 3 am, people are in charge of how they view content. OTT TV gives brands the chance to meet their expectations
- OTT TV is exploding with popularity. By 2025, there will be nearly as many OTT subscriptions in America as citizens. People are willing to pay for the content they want.
- Launching an OTT TV app is possible. You no longer need to code or have a mega-budget to start streaming and charging for your content. With OTT platforms like Vimeo, content creators are in charge of what revenue models they use and how much content they produce.
Want to learn more about OTT TV? Check out how to start your own channel today!
