An Over The Top Platform ( OTT Platform ) Is a Media Service That Offers Their Content Through Online. The Term Is Commonly Applied To Video-On-Demand, Music-On-Demand Etc.
What is the OTT Platform?
OTT Platform Is Digital Way Of Bypassing Traditional Cable, Satellite Media Services. OTT Services Is Available For Every Single Person Who Is Exposed To Internet Connectivity.
Types Of OTT Services Offered :
- Video-Based OTT Services Ex: Netflix, Youtube Etc.
- Music-Based OTT Services Ex: Spotify, Apple Music, Youtube Music Etc.
- Messaging Based OTT Services Ex: Facebook, WeChat, Whatsapp Etc.
Modes Of Access To OTT Platform :
- Mobile Devices: Smartphones Can Download OTT Apps From There Supported Digital Store
- Smart TV’s: Modern TV models often include pre-installed OTT apps.
- PCs: Most Desktops Support OTT Content Through Desktop-Based Apps or Web Browsers.
Top 4 OTT Platform In India Based On Subscription :
- Disney+ Hotstar ( Free & Paid ): Hotstar is Officially Launched in 2015 By Star Group India To Offer IPL and Other Cricket League For Free ( Ads ). Later Rebranded as Disney+ Hotstar After Walt Disney Groups Acquired Star Groups Parent Company 21st Century Fox For $71.3 Billion In 2019. Disney+ Hotstar Has Over 400Mn Monthly Active Users and 8Mn+ Paid Users
Pros & Cons:
- Disney+ Hotstar Is PowerHouse Of Content Because It Owns Marvel, Pixar, Star Wars, And Other Production Studios.
- Disney Is Also Owns Star Groups Which Is Used To Telecast Cricket, Football Etc. and Which is the Main Reason Behind The Huge Customer Base Disney+ Hotstar.
- It Provides Two Annual Plans Hotstar VIP ( Only Regional Language ) For 399 a Year and Hotstar Premium For 1499 A Year.
- Disney+ Hotstar Is Only Available Is India.
- Amazon Prime Video ( Paid ): Amazon Prime Video Has Over 4Mn+ Paid Subscribers In India and Over 100Mn+ WorldWide. Prime Video Was Originally Launched In 2006 In US Later Expanded There Market WorldWide. Prime Video Is Launched Their Service In India On December 2016 ( Jio Effect )
Pros & Cons:
- Amazon Prime Video Offers Cheapest Price In India Compared To Their Global Pricing.
- SonyLiv ( Free & Paid ): SonyLIV Provides both Entertainment and Sports, Along With International and Local content. Earlier SonyLIV Claims It Has Over 70-80Mn Monthly Active Users, With 14-20 Million Paid subscribers.
Pros & Cons:
- Sony Liv Offers More North Indian Content.
- Sony Liv Offers 3 Plans With Monthly, Quarterly, and Annual Plans Prices From 299,699,999 Respectively.
- Netflix ( Paid ): Netflix Claims Has Over 200 Million Paid Subscribers Which Makes Him a Global Leader In OTT Market. Netflix Has Launched Its Services In India In 2016 ( Jio Effect ).
Pros & Cons:
- Netflix Is The Most Expensive OTT Service Offered Irrespective Of That They Provide Super Quality Content.
- It Has Just 2 Million Paid Subscribers In India Due To High Pricings.
- Prices Range From Rs 199 To 799 a Month.
- It Offers a Mobile-Only Plan For Rs 199 Exclusive For India Only.
OTT Platform Revenue Models :
OTT Platform Have Gained Huge Popularity Over The Years. The Recent Lockdown Period Due To The COVID19 Has Proved The Most Beneficial For These Online Apps Which Have Played An Important Role Keep Us Entertained During This Crisis. Netflix, Prime Video, Disney+ Hotstar are The Three Major OTT Platform Has Huge Market Share In Global OTT Market Share. But How They Earn Billions Of Dollars Even In This Global Crisis? Every Person Confused Or Wonder Yourself How They Earn Money In their Lifetime.
So Let’s Discuss Video On Deman ( VOD ) Revenue Or Business Model. There Are Three Types of VOD Revenue Models.
- Subscription-Based Model: Subscription Model Is a Video-On-Demand Service That Allows Users To Access An Entire Video Library For a Certain Fee. This Fee May Be Charged Daily, Weekly, Monthly, or Annually, Depending On The Certain Company’s Policies. Once The User Has Paid For Access To The Service, They Can Watch As Many Videos As They Want As Per Their Subscription Plan.
Example: Netflix, Prime Video Etc.
- Advertising-Based Model: Advertising Model Is a Video-On-Demand Service That Allows Users To Access An Entire Video Library For Free In Returns Users Needs Watch Ads Which Will Played Between The Video-Based On The Users Interest.
Example: Youtube, AOL On Etc.
- Pay Per Movie Or Transactional Based Model: This is the Least Used Users Because They Have To Pay For Movie They Need Access Which Unlikely From Ads Based and Subscriptions Based Which Provides Access To Entire Libary For Single Payment or Ads.
Example: Google Play, Itunes.
- Hybrid Model: This Model Is a Mixer Of Both the Ads & Subscriptions Model Which Allows Users To Access Some Amount Of Content For Free Sign-Ups ( Ads Model ) And To Access the Entire Library Of Content Users Need To Pay.
Example: Disney+ Hotstar, Youtube.
Note: Majority Of Music Streaming Platform Uses Hybrid Revenue Model. Ex: Spotify, Gaana Etc.
Revenue Of Top OTT Platform:
- Netflix Reported Their 2019-2020 Revenue Is $22.628 Billion an 28.3% Increase From 2018-2019.
- Youtube Reported Their 2019-2020 Revenue Is Nearly Around $15 Billion ( Google Revealed It For The First Time )
Note: Numbers Maybe Different.
Future Of OTT:
The Future Of OTT Is Very Strong Which Is Proved In This Covid-19 Crisis. Disney+ Has Huge Opportunity By 2025 After Netflix Because Of Its Huge Production House Even It Set a Record By Reaching 50Million+ Paid Subscribers In a Very Short Time ( Worldwide ). Netflix Is Set To Spend More Budget On Content Production To Retain Its Crown As a Market Leader. Prime Video Is Projected To Third Largest OTT Platform By 2025 After Netlfix and Disney+.
This Is All OTT Platform and Their Revenue Model.
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