According to statistics, the number of OTT users is expected to be 3,5 billion in 2023. Also, OTT platforms are expected to generate $316,10 billion this year. Statista predicts 4,22 billion customers will use OTT video streaming platforms by 2027. By 2027, the industry is forecast to generate $462,90 billion in revenue.
To compare, 2,2 billion people used OTT platforms in 2017, 3,1 billion users in 2020, and 3,3 billion in 2021. There was a decrease in the number of users in 2022 – 3,26 billion consumers. But experts expect the number to grow in 2023.
OTT platforms are popular both among viewers and companies. Viewers switch to them because they give people complete control over content consumption, while companies use them for monetization and reaching the target audience.
Let’s talk about that in detail.
Why are OTT Platforms Popular Among Companies?
The main reason for its popularity is monetization opportunities. Companies create their own content, upload it on the OTT platform with the help of OTT middleware, and sell access to it.
There are different ways they can sell access to content:
- Advertising allows companies to offer free videos and generate revenue by running ads on the platform.
- Subscriptions offer you to sell monthly, quarterly, or annual access to the whole library of videos. People purchase once to watch anything they want on the platform.
- A pay-per-view model allows a provider to sell access to one piece of content at a time. A viewer needs to pay for every video on the platform.
- A hybrid approach allows you to combine several pricing options. For example, Netflix now offers two plans to its viewers: they can watch content with ads but pay less or watch videos without ads but pay more. Another combination is subscriptions and a pay-per-view: you offer two groups of content to viewers. They obtain a subscription but should pay extra for each Premium video.
Along with monetization models, OTT platforms have multiple features to engage viewers. For example, an OTT recommendation engine can offer videos similar to those a user has already watched.
With the help of an OTT video streaming platform, a company can educate, entertain, or inform people. These videos can help the brand to create a regular customer base and build strong relationships with them. Moreover, you can become an expert in your field, which is also beneficial for brand representation.
Why are OTT Platforms Popular Among Viewers?
OTT platforms deliver different types of content: VOD (video-on-demand), TV programs, catch-ups, and live streams. Users can choose any format they like. However, you should know that VOD content is in demand among people because it makes videos available at any time.
VOD content is pre-recorded and stored on servers. All a user needs to do is find a video they want to watch and press the play button. There is no need to wait as there is no schedule.
Furthermore, OTT platforms are usually available on multiple devices, including smartphones, Smart TVs, and tablets. For example, NimiTV even included multi-platform availability into the benefits of a subscription. A customer can watch Albanian TV channels either only on a smartphone or several devices.
What also matters to viewers is that it is easy to stop using these video streaming services. Subscription is easy to cancel, a transactional-based (pay-per-view) platform allows the purchase of only one video, and ad-based services don’t require any personal information and signing up for a long-term contract.
OTT platforms are already popular among more than 3 billion people, and the number of fans is expected to grow in the coming years. Viewers choose online video streaming services because they provide the freedom to watch what, when, and where people want. Due to that, these services are in high demand, and companies can take advantage of them to generate revenue.