What is OTT?

The history of OTT and streaming

The OTT industry started in 1998 when Hong Kong Telecom launched its Interactive TV (iTV) service. It was the first service of its kind, allowing viewers to watch 780 hours of movies on demand, along with 95 hours of music and 150 hours of radio. This was the first OTT streaming service – as we know it today – available to consumers, far before Netflix released its own platform. iTV also set the standard for similar services to be available through subscription models.

Netflix launched its online streaming service in 2007 after starting out as a DVD rental business in 1997. At the time, subscriptions charged at $20 a month allowed subscribers to rent an unlimited number of DVDs, which were delivered by post. Netflix set the industry standard and soon became the most popular streaming service, eventually going on to produce original titles such as “Squid Game” and “Stranger Things”.

As more of these streaming services followed – such as Hulu, Amazon Prime Video, and Disney+ – “cord-cutting” gained popularity. This is the term used to describe users switching from their usual pay-tv packages, such as cable, to OTT services which are available online. The ease of access and volume of content available clearly proved popular as the industry was worth $154 billion as of 2022.  

What is an OTT platform?  

OTT platforms provide OTT media services, like Netflix, Amazon Prime Video, Disney+, NOW, and Pluto TV. They are commonly referred to as “streaming services” as they allow users to stream a range of media over the internet. Video streaming services are most commonly referred to as OTT platforms, but services such as Spotify can also be included as they provide an audio streaming service for music and podcasts. The popularity of these services has grown exponentially due to the volume of content available, and how easily accessible it is for viewers.

Examples of OTT services

• Netflix  
• Amazon Prime Video
• Disney+
• NOW
• Hulu
• HBO Max
• Paramount+
• Starz
• Sling TV

OTT TV

TV was originally delivered through cable and satellite broadcasts, with programmes presented in a linear schedule. OTT TV is providing an enhanced service when compared to traditional broadcast TV, with the content being delivered over the Internet instead. It also doesn’t have to be accessed on a TV but can be delivered to any device with an internet connection, allowing viewers to access a range of content wherever they are.

OTT TV is also referred to as streaming TV or Internet TV. It’s simply the delivery of on demand or live streamed content over the web.  

The future of OTT  

The OTT industry has come a long way since the early days of Netflix. Competitors popped up, along with changing monetisation methods beyond subscription models. These methods can include advertising (AVOD), transactions (TVOD), subscriptions (SVOD), and hybrid models (HVOD).

Innovation in the industry has ranged from recommendation engines which provide personalised suggestions for what to watch next, to 4K resolution streaming capability. The key here is that innovation is usually within the limitations of the technology and infrastructure available at the time. As technology evolves with each iteration, such as 5G networks allowing increased bandwidth over 4G, so do the services which utilise these networks.

Here are some examples of future trends:

• Advertising being more widely used as a monetisation method
• Increased competition will fast-track innovation
• Streaming services will be available in more places, such as in-car entertainment