What Is OTT (Over-The-Top)? How Does It Work?

What is OTT - DemandSage

OTT is one of the most used services in today’s era. The revenue in the OTT segment alone in the United States is predicted to reach $119.10 billion by the end of the year 2022. 

The revenue of the OTT platforms is expected to grow at a rate of 11.72% till the fiscal year 2027. In the OTT video segment, the number of users is predicted to reach 313.4 million users by the end of the year 2027. 

In the following article, I have compiled all the required details regarding what actually are OTT services and other important concepts related to them.  

What Is OTT?

OTT is an abbreviation for “over the top.” It stands for the practice of delivering streaming content and products directly to customers through the web. OTT is said to be the future of the entertainment industry. 

The OTT platforms provide the audience with all the streaming content available around the world. Various subscriptions provide access to different contents available across the globe. Streaming media is the only product offered by the OTT platforms. 

OTT is a term referred to the platforms that provide the audience with the video on demand services. OTT platforms are the strongest competitors of traditional media distribution channels. They are considered the best alternatives to traditional TV subscriptions. 

What Is OTT - OTT

To access the benefits of the OTT platforms, all you need to own is a stable internet connection and a device to watch the video content. Most of the OTT subscriptions are paid, and you need to renew the subscriptions according to your needs. However, some OTT platforms are free and offer in-app purchases or generate revenue through advertisements. 

Why Is OTT Used?

More than 50% of North Americans reported having subscribed to Netflix. Also, in other parts of the world, OTT platforms have gained large popularity with a great audience base. 

One of the most well-known reasons reported by people to choose OTT platforms over traditional cable subscriptions is that it provides high-value content at lower prices. You get to stream everything in one place at that price, less than the traditional cable.  If you don’t have enough time and just need to stream a few of the content, the prices offered by the platforms are surely reasonable. 

You get to stream the original content on the OTT platforms, and there is exclusive content access that most of the platforms provide their users. You get direct access to all the content present there on various platforms. 

If you are bored while traveling, you can just remove your mobile phone and start streaming any video content you wish. You can also stream the content on a tab or PC or on your laptop and desktop. Moreover, if you own a smart TV, you are sure to stream all the content of the TV as well. Any OTT user can use any device he wishes to stream the content available, like Android, iOS, or desktop. 

On Which Devices Can You Stream OTT?

You can stream OTT video content on various devices. However, some devices can provide more flexibility while some don’t. Let us take a look at how various devices allow you to access content on the internet. 

  1. Mobile Devices and Tablets:

You can use mobile phones and tabs to access the video content anywhere on the go if you have an internet connection. Moreover, you can also download the content on your smartphones and tabs. 

  1. Personal Computers and Desktops:

Most computers support OTT video streaming through the web apps available for desktops and laptops. You can stream using your computers from your comfort. 

  1. Smart TV:

The latest smart TV models include already installed OTT apps. If they are not already available, the users get an option to install them. You can easily watch all your OTT streaming videos on TV  now. 

  1. Digital media players:

There are many digital media players like Apple TV and game consoles that support OTT video streaming. You can simply download the app and start streaming the videos. 

Importance of OTT  

OTT platforms are able to gain a great place in the marketplace. Many fortune companies are looking forward to investing in OTT service-providing platforms. 

Undoubtedly, OTT platforms have done their base in gaining the attention of a large audience and attracting them towards their products. Due to the interest of the big companies in OTT services, consumers are enjoying the benefit of the versatile content and availability of large options. 

Marketers see OTT as a big opportunity to take maximum advantage of video streaming. Most of the products that are advertised on the OTT platforms have seen an increase in sales, and the revenue generated by them has grown rapidly. 

Who Are The Largest OTT Providers?

The OTT services are successful in attracting a lot of visitors to their platform through video streaming. The popular service providers of video OTT are Netflix, Disney+, Hotstar, Hulu, HBO Max, Amazon Prime, etc. They provide consumers with various options in programs like movies, streaming series, films, original programs, etc. 

What Is OTT - Provider

Netflix is the largest OTT platform used worldwide, with billions of users. 

How Is The OTT Affecting Other Media Distributors?

Most people believe that OTT is the new future and is sure to replace other media distributors. More of the audience is focusing on the web-based alternatives of TV cables. 

There are 74% of adults in the age group of 18 to 34 prefer OTT services. While there are 64% of grown-ups prefer OTT services over cabled subscriptions. 56% of the adults in the age group of more than 55 reported that they use OTT services. The OTT has surely led to the decline of the cabled media outlets. 

However, with the increasing use of OTT services, still, most people prefer traditional cable subscriptions over OTT subscriptions. The people who prefer the traditional Tv subscription have reduced the TV charges and use it along with other OTT subscriptions. 

Benefits & Drawbacks Of Starting An OTT Business

Here we have mentioned the benefits & drawbacks of starting an OTT business:


  • You will get total control over your content, and you can choose to upload any type of content there.
  • You can monetize your content any way you want and get detailed analytics on how your audience interacts with the content you’re uploading.
  • With OTT, you can showcase content without any advertisement and sell subscriptions to your OTT platform.
  • You can approach directly to consumers and target the audience by providing valuable content.
  • Consumer gets the freedom to choose what they want to watch; all they have to do is search for the title, and if it is available on your OTT platform, then they can easily watch it.


  • You need to make sure that you’re offering a smooth user experience; otherwise, your audience will leave.
  • You will have to face streaming giants like Netflix, Amazon Prime Video, Disney+, and many more, so it might be difficult for you to reach your targeted audience.

What Is OTT Marketing?

Many OTT providers offer services on paid subscriptions. However, there are some OTT platforms that provide free services in exchange for the advertisements displayed on their platforms. 

OTT marketing is much like TV advertisements that are displayed between songs or episodes. There are usually 2 types of OTT advertisements, generally categorized into client-side and server-side advertisements. 

The client-side advertisements are displayed before the new episode starts or a film is shown. In server-side advertisement insertion, the ad is integrated with the frames of the media content displayed. The major difference between client-side ads and server-side ads is that you can block the client-side ads, but you can’t block server-side ads as they are integrated with the media displayed. 

Benefits Of The OTT Marketing

As OTT is able to reach a maximum audience around the world, OTT marketing has gained large benefits through it. Most of the audience prefers getting personalized advertisements. 

It was recorded that more than 50% of the viewers paused the video content to check out the product that they had just seen in the advertisement while streaming the OTT platform. 

There has been an increase in the click-through rate of the advertised products since the pandemic hit. By the end of the year 2022, the revenue generated globally by OTT advertising is expected to reach $180 billion. 

Conclusion: What Is OTT?

That’s all about the OTT(Over the top). 

The OTT industry continues to grow rapidly, with SVOD being the most loved type of video-on-demand service. Over 6 million houses reported cutting out the cabled connections in the year 2020. It led to a total of 31.2 million cord-cutting households. 

I hope that the above article has helped you to understand what is OTT and what services it provides. OTT has really seen shocking growth during the pandemic period and has led to an increase in OTT platform subscribers. 

So which is your favourite OTT Platform and why? Let us know in the comment section below. 


What is the OTT means?

OTT  means over-the-top. It provides the user’s video content directly through the web at the request and according to the requirements of the consumers. 

Is Netflix an OTT platform?

Yes, Netflix is an OTT platform. Also, service providers like Disney + Hotstar, HULU, Amazon prime video, HBO Max, Pluto TV, etc., are OTT platforms. 

Is OTT better than TV?

OTT platforms provide access to global content, while TV doesn’t. Moreover, you can get access to OTT platforms at a lesser price as compared to the television cable subscription. Hence, OTT is surely considered better than TV. 

Which country has the most OTT platforms?

India has the most OTT platforms among all the countries worldwide. It is the top country for viewership. 

Which OTT has more subscribers in the world?

Netflix has the most subscribers around the world. There are more than 182 million subscribers from all over the world on Netflix. 

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