COVID-19 — Global OTT Video business
COVID-19 redefined the way we have been living our lives. Not just our lifestyle or the way we work, but also our modes of entertainment. Be it gaming or binge-watching. The latter has indeed shown some remarkable growth statistics in the last year.
According to a report shared by Statista, people have spent most of their time watching movies and shows online compared to news, sports, etc.
What is all the buzz about?
While most industries struggled to sustain in 2020, some had their best phase during the Covid era. OTT platforms are one of those, which relished an overwhelming response across the globe. While there’s a never-ending list of leading OTT platforms like Netflix, HBO, Amazon Prime, Hulu, Disney+, etc., users also looked for those providing unanimous space to view content from multiple platforms.
Aligning with Brightcove’s Q2 2020 Global Video Index, the first half of 2020 alone experienced a 30% increase in users than those in 2019. Another report from Statista shares that the revenue generated by Subscription Video on Demand (SVoD) will reach $71.237 million in 2021, marking 20.4% YoY growth. The same report shares that the industry will mark a YoY growth rate of 11%, with an expected user penetration of 14.3% in 2021.
Key factors defining the inclination
1. Easy and quick internet access
The internet isn’t just becoming easy to access; it’s also faster than before. During the times of lockdown, governments have accepted the importance of advanced connectivity. The ‘work-from-home’ culture majorly influenced and fuelled the OTT platforms’ usage.
While developed countries already have the infrastructure to deliver fast internet services, governments in developing countries have prioritized establishing 5G connectivity. The developing countries in regions like APAC and MENA have refreshed their priorities to match the changing needs.
2. Technology getting smarter
Unlike the traditional era, OTT platforms let you view your favorite shows and movies across various devices. With technological advancements rolling in our life, users now have the liberty to use OTT apps on their smartphones and smart TVs. Besides this, fast and affordable mobile internet plans also play a crucial role in determining this industry’s growth. Also, features like cloud-based streaming, VoD, content recommendations, and the vast library to meet everyone’s expectations have made OTT platforms gain people’s trust from across the globe.
3. As and when you need
Taking the cross-device compatibility and high-speed connectivity together, OTT platforms let you browse shows and movies as and when you need. With the passing years, user expectations have changed drastically.
However, there’s one thing common among all these, and that’s a personalized experience. The ease in accessibility and freedom to use will further make it engaging and intriguing for people. Together, it ensures delivering a seamless watching experience.
4. Content variation
You have a massive list of shows and movies in front of you to select from. With plenty of content in different genres, you can decide what and when to watch based on your mood and the company.
In fact, before Covid-19, these platforms were almost at a standstill to produce new content. In the last one year, an unmatched rise has been noticed in the content creation segment, and people had time to watch them all.
5. Multiple options
This isn’t an overnight fable; OTT platforms have been around for a long time and have grown in numbers. Some of them have a dedicated genre of content, targeting an audience with specific tastes. Thus, users have all the liberty to decide their preferred platform and eventually switch depending on their taste and mood.
OTT industry has changed the way we used to surf content online. Winding-off the traditional mediums, we have adapted ourselves to the cloud-era. And looking at the growing trend, it can be firmly believed that the coming years will see no decline in the number of users.
However, just like any other technology, this one’s too is sure to have certain loopholes. These might not be visible for now, but in the long run, just like other cloud-based platforms, we may come across security and privacy threats. What do you think?