OTT Platform (Types, Features, Business Model and Money Making Methods): OTT stands for over-the-top media service, initially named as these devices will go “over” a traditional satellite TV cable box to give the user access to TV & digital streaming content. In OTT platforms, the content is delivered via an internet connection rather than cable/broadcast provider.
Here Individuals watch movies and video content via any app or website through Internet. Also, Individuals will get a chance to stream movies using their TV sets connected to the internet through built-in internet connectivity (Smart TV) or through other devices with the functionality such as a set-top box (STB) devices.
What are OTT Rights or Digital Streaming Rights?
As we see an ongoing increase in over-the-top (OTT) subscriptions in India from the last 1 year due to of the COVID-19 pandemic, and Indian OTT platforms such as Netflix, Amazon Prime Video, Disney Hotstar, SUN Nxt, SonyLiv etc., are rapidly growing and providing content creators and rights holders a host of new customers for their content, there is a direct impact of different offerings such as multiscreen, time-shifting and the demand for exclusive content today on TV and movie licensing trends.
Features of OTT Platform
- The Video content available in OTT platforms can be viewed across any streaming device, including TV, Laptop, Smartphone, OTT devices, and more.
- OTT also has special devices like Smart TVs, Apple TVs, Chromecast, PlayStation, Xbox, Amazon Fire sticks, and other streaming devices.
- OTT platform allows more than 1 person to watch movies online
- Ad free content with premium plans
- Premium subscribers can watch movies in various languages
Types of OTT Platforms Business Model
Transactional Video on Demand (TVOD): TVOD entails a transaction for every piece of content downloaded by a user.
Subscription Video on Demand (SVOD): Example Netflix, where users pay a fixed sum every month, and an entire library of content is available to them.
Advertisement-supported Video on Demand (AVOD): Example: MX player,YouTube and other type of video players makes money mainly by advertising. AVOD allows users to stream content for free, but slips in advertisements at strategic intervals along the film. AVOD offers a part of the ad revenue to the broadcaster, as an incentive.
How Do Video Streaming Services Make Money?
Video Streaming Services usually makes money either through Ads or subscription plans. But most pf the OTT platforms like Amazon Prime Video, Hotstar and Netflix relied on long term process in generating money. In general OTT platforms makes a lifetime deal with filmmakers since they can only recover the money they put on to buy the digital rights after many years. Normally it will take 5 to 10 years to recover the whole money they paid for the digital streaming rights.