Over-the-top companies are part of our everyday lives. Netflix, YouTube, Hulu and Apple TV stream videos. Skype and Facetime provide voice and video calls. WhatsApp enables mobile device messaging (and now video calling). Xbox360 facilitates WoW gaming, while the almighty the Google reportedly wishes to be part of the over-the-top OTT TV business.
Telecommunications operators perceive over-the-top OTT as a threat for their more traditional approach. They currently experience the pressure to leverage their assets and capabilities. With modern technologies taking away their customers, Telco industry members are striving to upgrade their services. Their endeavors are expected to be a huge, revolutionary effort.
What exactly is over-the-top OTT ?
When considering just video streaming, online sources explain OTT as “delivery of film and TV content via the Internet, without requiring users to subscribe to a traditional cable or satellite pay-TV service like a Comcast or Time Warner Cable.”
This new model disrupts the traditional system where cable providers sold preconfigured bundles of channels. Thus they balanced successful channels with the ones there was less demand for. Customers now still need the cable providers’ services, but only in terms of broadband. The modern broadband should be able to support all the new video streaming requirements. Most of the times this involves multiple devices in the same household or office.
Nevertheless, over-the-top OTT is more that this, as we can see in the opening enumeration of renowned OTT companies.
Going up the stream we reach OTT content. This translates as the autonomous delivery of audio, video or other media content via Internet. Autonomous, as in the Internet provider being left out of the “control, the viewing abilities, copyrights, and/or other redistribution of the content”. The ISP becomes a mere transporter of digital content between third-parties and the end user.
In this type of data traffic, the cyber-security depends upon the third-party (the source), rather than upon the provider’s or mobile operators’ network. Therefore safe suppliers generate cyber safety. The latest mobile standards are of utmost importance, and end users are advised to seek suppliers that have efficiently implemented modern security algorithms.
The denomination stands for the means of providing communications linked to this technology. “Over top of traditional communications services such as the mobile telephone network by leveraging the IP network. “
Most prominent vendors in the over-the-top OTT market
Due to the high demand, the over-the-top OTT market is a extremely competitive one. Moreover, it has an expected potential in Compound Annual Growth Rate (CAGR) of 20 percent (by 2020).
It is no wonder that the most prominent vendors are all well-known brands in tech, with Amazon leading the top. This brand counts over 50 million registered users. Apple, Facebook, Hulu and Netflix follow Amazon. Due to the acquisition of Anvato in July 2016, Google is now in the “other” important vendors category. If if it handles its ascension in this field as it did with other types of services, it may soon enter the leading group.
HBO is also expected to launch its own over-the-top OTT service. You are surely familiar with Roku and Popcorn Flix, while other vendors may sound a bit unfamiliar for some: ActiveVideo, CinemaNow or NimBuzz.
OTT and IoT
Internet of Things is a word almost on everyone’s plate lately, with its full potential yet to manifest itself. IoT means connectivity, complex new services and a huge amount of data traveling to and from end users. Hardware-wise, imagine all possible connected devices and perhaps some new types. Add to that sensor networks that would integrate industrial systems and monitoring systems in various fields. Software-wise, think applications, in infinite shapes and with various functionalities.
It only makes sense that content traffic would benefit from faster lanes that enable over the Internet data traffic straight from the source to the end users. Thus the projected market value of this intertwined future of connectivity counts around $64.9 Billion.
Other related important elements would be cloud computing (cloud models, cloud security, cloud services). Even Augmented Reality (AR) and Virtual Reality (VR) expansion into more environments links to OTT and IoT.
5G (5th generation mobile networks or 5th generation wireless systems) and 4K content broadcasting are also set to be a part of this humongous services’ bundle. The aim is to meet modern, if not futuristic customer demands and turn them into a brave new reality.
In terms of subscribers, the OTT video services streaming alone is expected to surpass the 330 million subscribers level – and that’s by 2019. Quite impressive numbers, all due to the shift in consumer interest that is still surging.
How would you benefit from OTT expansion?
It is easy to see how individual consumers would enjoy OTT services in content delivery. Seeing how they are faster, more cyber safe and more dynamic, it is a given. The services could keep pace with various innovations. High competition also favors the end users and makes development thrive – so it is all about the race for the future.
In what business owners are concerned, one is always advantaged to be where peers and customers all wish to be met – just on the peak of the newest technologies. The business environment has also registered a rise in the demand for VOD (Video On Demand) (VOD), VoIP (Voice Over Internet Protocol) calls, web conferencing, instant messaging services tailored for work needs.
Reports show IoT adoption to be crucial for more and more enterprises, stimulating revenue growth and revolutionary business transformations.
Since OTT and IoT do have a tight relationship, and OTT data flow is viewed as increasingly cyber-secure. By comparison with what traditional digital traffic means, it is only obvious why companies would employ this data delivery method in order to reap its benefits and to consolidate their good reputation.
