Since the introduction of streaming platforms, individuals everyday are continuing to make the switch from cable to OTT. In fact, OTT is expected to double in size by the year 2023. Individuals can agree that accessibility and technological advancements are a few of the main growth factors for OTT.
Streaming only requires a high-speed internet connection and a connected device that supports apps or browsers. In simple terms, OTT allows people to only pay an internet provider and a streaming service to watch their favorite programs.
With continuous growth, there are numerous OTT platform trends that you should watch out for this year.
1. Expansion for Businesses in The Video Streaming Space
You have more than likely been exposed to the many advertisements on the various OTT platforms. OTT allows advertisers to create relevant audiences constructed on user behaviors. Targeting for specific behaviors is a strategic way to reach viewers at the right place and time in order to scale new audiences.
It is predicted that there will be nearly two billion effective subscriptions on the OTT platforms by 2025; which is a 65% increase from 2020. With the increase of individuals streaming, more companies and brands will be experimenting with OTT advertising.
Not only has Netflix decided to incorporate advertisements in the future, but Disney has structured a deal with The Trade Desk to expand advertising options in the space. These recent industry moves are creating new opportunities for brands to buy advertising on premium inventory.
2. Synchronized Watching Between Multiple Parties
As it was difficult to connect with your loved ones in person in recent years, OTT streaming services made it possible to connect virtually with the addition of synchronized watching. As this trend emerged, co-viewing integrations were offered on more platforms like Hulu, Amazon Prime Video, and HBO. Although the world has reopened, the rise of synchronized watching has continued to increase and lead to retention of users on the platforms.
3. OTT for Sports Viewing
With 5G internet connection making it faster than ever to stream, sporting channels are fully embracing OTT. OTT allows for individuals to simply live-stream sporting events from any device, while interacting and engaging on the platforms. These interactions include sports betting, fantasy leagues, and audience reactions. OTT brings a very personalized experience to viewers at home with capabilities they have never experienced before.
4. A Race to Be the Best
At the end of the day, what does the domination of OTT mean for the streaming platforms and engaged audiences? As more viewing platforms emerge, viewers are given a greater variety of content and companies are given more opportunities for advertising. As these services expand, so does the competition between platforms. Netflix, Amazon Prime Video, and Apple TV+, are all competing to showcase their advertising capabilities in order to create additional revenue streams. Each platform is feeling the pressure to review their performance and establish next steps to maximize their profits.
As trends are ever-changing, OTT has proven that this form of viewing is here to stay. It is also a strategic way for business owners to strengthen customer relationships. OTT allows viewers to gain access to video content from anywhere, on any device. Over 80% of marketing professionals say that video content will continue to become more important in coming years. It is apparent that this form of advertising will be a driving force for brands and companies.
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