Over the top content (OTT) is a rather common term in some tech and marketing circles, and for good reasons!
It concisely addresses the paradigm shift the internet brought to the way some industries do business over the past decade-and-a-half. However, it is often difficult to home in on a comprehensive definition that sums up every angle of the phrase.
Whether you are a marketer, tech-head, or a business owner, most people today should have a clear idea of the concept’s meaning and uses. It can help you understand how (and why) things have changed, but also help you and your business adapt to the future.
What is Over the Top Content?
The idea of over the top content is tightly knit to the concepts of creative disruption and disruptive innovation. Yet it is almost exclusively discussed in the realm of subscription-based and video-on-demand businesses.
At its essence, though, it refers to a new way of doing things that dramatically changes “the way it used to be.”
The easiest way to understand the concept is through examples of services and applications that disrupted established business models. Think about Amazon altering the way people shop for anything. The fantastic rise of Netflix and Hulu, changing the cable and satellite TV landscape. Or Skype and WhatsApp replacing long-distance calls providers.
It is a term that can define anything that disrupts traditional business models.
OTT content and applications usually lead to wide-ranging conflicts between the companies that follow the old ways, and the ones that come to reshape it. Specifically, when both belong to similar or overlapping niches.
For example, a cable company that doubles as an internet provider faces a conflict of interest. They have to offer fast download rates to stay competitive, which also might have people forgoing their cable subscriptions in lieu of streaming services, the competitors that bypass their traditional distribution channel.
Oh! and OTT is also the name of our company, Over The Top SEO… but you were probably looking for the first definition anyways 😉
Why You Should Care About Over the Top Content
With consumers being more empowered than ever before, they innately opposed to being told when and where they could purchase, watch, or gather information.
Each passing year, OTT alternatives develop at increasing rates. Live broadcastings, free multimedia (YouTube), mainstream entertainment… all have been touched and reshaped by it. And that effect has only become more apparent as of late. With growth, of course, comes opportunity.
As the OTT model continues to expand, so do the chances for businesses and brands to leverage technology and place themselves in front of a wider audience. Even at the individual level.
Is There Still Potential for Growth?
As much as OTT content models have altered things already, in the grand scheme of things OTT content is still in its infancy.
According to the PricewaterhouseCoopers Entertainment & Media Outlook for 2018, OTT video revenue is well on its way to surpass the 30 billion mark by 2020. A steep climb in only four years, from the 19.45 billion figured back in 2016. Incredible growth that will be mainly be driven by SVOD and advertisement.
Significative numbers like these are difficult to ignore and reflect the scope of its colossal audiences and strong customer retention trends. So, this expansion is far from over.
How Can Businesses Capitalize on OTT Content?
The ground is fertile and the rules still being written on this topic. Which is precisely why there’s such an opportunity. Here are a few areas where you should keep your eyes and attention:
- Messaging Apps: Over The Top messaging apps like iMessage and WhatsApp already cover a mind-bogglingly huge audience, in spite of only being around for a few years. With billions of users and incredible outreach potential, increasingly more businesses are making these platforms a significant asset in their tool belt.
- Interactive Video: With nearly 765 million people using a subscription Over The Top video service already in 2018, there is a massive scope for companies to interact with customers. As more time passes, the opportunities for fantastic brand advertisement through channels like Netflix and Amazon Prime Video with grow accordingly.
- Original Content & Sponsorships: While slightly less self-evident, these alternatives that take advantage of OTT media are still being shaped. A business can associate itself with curated programming threads that resonate with their branding and products. It can also create content relevant to their audience to remain relevant.
However you look at it, keeping a finger in the pulse of Over The Top content and mediums is getting to be hard to ignore. And it certainly presents a host of opportunities to get ahead of the curve.
OTT is opening new avenues to the digital marketing arena, and today’s consumers and more attuned than ever to such mediums.
It’s high time to start taking advantage of them!