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Home » Blog » Leads » CTV, OTT Trends And Their Application 

CTV, OTT Trends And Their Application 

Written by Aishna Ohri

There was a CTV news break in 2021 that the streaming subscriptions in the US overtake the number of people.

Can you imagine there are more subscriptions to video streaming services including Netflix, Amazon Prime, Hulu, HBO Max and Disney+ than there are people in the USA.

With such demand and likability the CTV has also attracted advertisers in a grand way. Since CTV (connected TV)  has been introduced to the world there is no putting a stop to its popularity.

The major reason why CTV/ OTT has gained popularity is because the audiences have more than ample content to view. They can watch from cross-cultural content to documentaries, fiction etc.. it’s like never ending entertainment, power in users hands to view anything that interests them at any time, anywhere, on any device.

OTT , CTV

CTV, OTT, Business growth, Performance Marketing

OTT & CTV

– OTT (Over the Top)

OTT Provider is a service that is connected to the internet, it enables video viewing by audiences on TV, mobile, Tablet through apps, sites bypassing broadcast, Cable and satellites. Example Netflix, Hotter etc.

– CTV (Connected TV)  

CTV’s include the sticks, streaming boxes, TV’s that allow audiences to enjoy OTT and streaming Services through internet connectivity

In 2020, pay TV penetration in the USA dropped below 60%, down from more than 80% at the start of 2015, with consumers increasingly shifting to SVoD services (Subscription Video on Demand) eg. Netflix, Hotstar etc.

Lets now talk about the major Monetisation strategies:

To the customers, these platforms seem to be easy and seamless but at the same time on the backend there are wide range of business models that control the access of the content displayed.

Let’s look into some of these models, Trackier helps tracking advertising through all these models:

  1. Transactional Video On Demand (TVOD): 

It works opposite to the subscription model where consumers pay per view basis for example Apple itunes, Amazon Video Stores etc. It has two sub – categories

  • Electronic Cell Through : Here you pay once and get permanent access to the content
  • Download to rent: Here you pay for the content and you can access it for a limited period of time.

TVOD offers more recent releases, timely access to new content and also grants higher revenues to rights holders.

    2. Subscription Video On Demand (SVOD):

This is basically a subscription model, where the end user pays a monthly subscription for the content offered, for example Netflix, Hotstar etc. 

In the financial year 2021, the value of the Indian video (OTT) market was forecast to be 1.5 billion U.S. dollars. COVID-19 brought along a shift in the way audiences consume media and entertainment, that led to higher adoption of OTTs. The Indian video OTT market size is expected to rise more than double in the next four years and reach 12.5 billion U.S. dollars by end of financial year 2030.

In SVOD there are no long term contracts, it offers greater options. As all the SVOD channels strive to offer the best content it becomes challenging for the providers. Therefore the end users benefit as they happen to get access to the best and exclusive content.

  3. Advertising Based Video on Demand (AVOD):

This is basically a discounted or a free service for example Youtube, Daily Motion etc. Premium content owners rarely use AVOD as it comparatively generates lower revenues. 

Know also about CTV Advertising: How Mobile Marketers Make the Most of It

If you are willing to advertise through any platform, the best way is to have a tracking tool like Trackier that gives out the business insights which can certainly help you make the right business call.

 






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