Over-the-Top (OTT)

What is Over-the-Top (OTT)?

Over-the-top (OTT) refers to the delivery of content or services directly over the internet, bypassing traditional media distributors such as cable, terrestrial TV, or satellite providers.

Types of OTT

Over-the-top (OTT) services can be divided into a few key categories based on the type of content or service they provide: 

Video Streaming OTT

These services deliver video content directly to users over the internet, often on-demand or live. Video streaming OTT can have different business models, such as platforms with a subscription fee, or free platforms that include ads. 

Examples: Hulu, Disney+, Amazon Prime Video, Apple TV+, YouTube, Tubi

Music Streaming OTT

Music streaming OTT services offer audio content, typically in the form of music, podcasts, and other audio entertainment, delivered over the internet. Similarly to video streaming OTT, these services can be subscription-based or free to use with ads inserted between tracks.

Examples: Spotify, Apple Music, Tidal, Pandora, SoundCloud 

Messaging OTT

This category includes services that enable text-based communication, usually with added features like multimedia sharing and chatbots.

Examples: WhatsApp, Facebook Messenger, Telegram, Signal, WeChat, KakaoTalk, Slack

Voice/Video Calling OTT

These platforms focus specifically on enabling voice or video calls over the internet, bypassing traditional telecom services. Some voice/video calling OTT also include messaging features.

Examples: Skype, Viber, Google Voice, Microsoft Teams, Zoom, WhatsApp, Facebook Messenger

Gaming OTT

Gaming OTT services provide gaming experiences, such as cloud gaming and streaming, directly via the internet without relying on a physical console. de messaging features. 

Examples: Steam, Twitch, Google Stadia, Xbox Cloud Gaming, PlayStation Now

Livestreaming OTT

These services offer live video content streamed over the internet, often in real-time, allowing users to access live events like news, sports, and concerts. 

Examples: Sling TV, Facebook Live, Instagram Live, TikTok Live, YouTube Live

Educational OTT

Educational OTT includes platforms that deliver informative content, courses, and tutorials via the internet. 

Examples: Coursera, Udemy, Khan Academy, MasterClass

eCommerce OTT

Commerce OTT platforms allow users to shop and access marketplaces via the internet, skipping the need for traditional retail channels.

Examples: Amazon, eBay, Etsy, Shopify, Uber Eats, Grubhub, Instacart

Why Do OTT Services Matter?

OTT services are growing rapidly because they provide more convenience and flexibility than traditional methods. Users can access content whenever and wherever they want, often on multiple devices, without needing a cable subscription or traditional distribution. 

Additionally, OTT services leverage customer data and real-time marketing to create personalized experiences for users, making them even more attractive for both consumers and marketers.

What are the Challenges of OTT Services?

OTT services have reshaped how people consume content, but there are several challenges that come with this shift, both for service providers and consumers. Here are some of the key challenges OTT platforms face: 

Managing Content Licensing and Rights

One of the biggest hurdles for OTT services, especially video streaming platforms, is securing the right content and dealing with licensing agreements. OTT providers often have to negotiate complex licensing deals to offer popular content, which can be expensive. 

User Retention

User churn is a major problem as consumers often sign up for a trial, engage with specific content for a short amount of time for free, and then cancel their subscription. Retaining users long-term requires continuous engagement and value. 

Monetization and Profitability

While OTT platforms have a large user base, monetizing this audience can be tricky. Offering a free service with ads and a paid version without ads can limit revenue opportunities, while subscription-based models risk users canceling subscriptions. 

Data Privacy & Security

OTT platforms rely heavily on user data to provide personalized experiences, which raises concerns regarding data privacy and the privacy paradox, as well as compliance with regulations like GDPR. 

Market Saturation

The OTT space is extremely competitive, with dozens of services vying for consumer attention. This results in market saturation, especially in areas like video streaming, where big players are already well-established. 

Device Compatibility 

OTT services are generally designed to work across a wide variety of devices, such as smartphones, smart TVs, laptops, and tablets, but compatibility issues can arise, especially with older devices or certain operating systems. 

The Role of an Omnichannel Marketing Platform in Managing OTT Services

An omnichannel marketing platform can be incredibly valuable for OTT providers in addressing several of these challenges:

Data-Driven Content Strategy

An omnichannel marketing platform can collect and analyze data on which types of content are performing best in different regions or with user segments. This can help OTT providers negotiate licensing deals based on consumer demand and target the right audiences more effectively. 

Increased Retention Rates & Reduced Churn

Omnichannel platforms provide data that allows OTT services to create highly personalized campaigns. By tracking user activity across multiple touchpoints, OTT services can send users targeted reminders, exclusive offers, and personalized recommendations, making them feel more connected to the platform. 

Improved ROI

Optimizing ad revenue and improving subscription upsell are the two main areas omnichannel platforms can assist OTT services in. Omnichannel platforms can integrate user data to create more effective ad targeting across various touchpoints. They can also allow OTT providers to target users with specific subscription upgrades, such as upgrading from basic to premium, during moments when users are most receptive to such offers. 

Compliance with Regulations 

OTT services can use omnichannel platforms to send users clear communication across different channels about how their data is used, ensuring transparency and building trust. Many platforms also come with built-in tools for managing customer data in line with privacy laws like GDPR. 

Enhanced User Insights 

Omnichannel marketing platforms empower OTT services to gain detailed insights into what content is performing best, where users are dropping off, and what actions lead to higher retention and revenue. These insights provide OTT services with a competitive edge where they can make data-driven decisions to optimize content, marketing efforts, and user engagement strategies.

Consistent User Experience

An omnichannel strategy ensures that users have a consistent experience across all devices, whether they are watching a show on a smart TV, browsing through a mobile app, or using a website. 

evamX: Providing Seamless & Omnichannel Experiences for OTT Audiences

evamX is an omnichannel marketing platform that empowers various businesses, including OTT services, to connect with their audiences during moments that matter.  

With its modules such as Digital Engagement  and Insight Tracker, evamX can segment audiences, gain valuable insights into each segment’s behavior and preferences, and suggest personalized actions at each step of the user journey. OTT services utilizing evamX can provide a seamless and consistent user experience across all channels with an omnichannel marketing strategy.