What is OTT? How Does It Work? Over-The-Top Media Service Explained

According to industry projections, it is poised to surpass 3.7 billion viewers in 2024, with revenue estimated to reach $300 billion. So what is OTT, and how does it work? Let's dive into the world of OTT.

1. Definition

OTT (Over-The-Top) media service refers to a method of delivering media content directly to viewers via the Internet, without relying on traditional cable, broadcast, or satellite television platforms. OTT primarily applies to video and TV programming, but it can also include audio, messaging, and voice services.

2. Key Words

Three confusing keywords can help you better understand OTT services. First, OTT devices. It refers to devices that distribute OTT APPs, such as Desktop, TV, mobile, and tablet. Second, OTT content provider. It is online service that offers streaming media and content like Netflix, and Disney+. OTT platform provider is a company that enables you to launch your OTT apps on different devices, like MUVI, and OTT Maker. The types of OTT devices can be further subdivided into several categories, as shown in the figure.

3. Monetization Models

Generally, there are three common models to help you make money. SVOD means that users pay a monthly or annual fee to access content without ads like Netflix. AVOD means that some platforms, like YouTube, serve ads to users who access content for free. TVOD is Pay-Per-View, allowing you to pay for individual videos that you want to watch. You can choose one mode. It is better to mix several modes.