Over-the-top (OTT) technology has emerged as a game-changer in the media and entertainment industry, transforming the way viewers consume and engage with content. OTT refers to the delivery of video, audio, and other media content over the Internet, bypassing traditional distribution channels such as cable, satellite, or terrestrial broadcasting.

1. What is OTT Technology: The
Ultimate Guide in 2023
Suganya Mathivanan · Follow
6 min read · May 10
Over-the-top (OTT) technology has emerged as a game-changer in the
media and entertainment industry, transforming the way viewers consume
and engage with content. OTT refers to the delivery of video, audio, and
other media content over the Internet, bypassing traditional distribution
channels such as cable, satellite, or terrestrial broadcasting.
In recent years, the popularity of OTT services has surged, driven by the
growth of high-speed internet, the proliferation of smartphones and other
connected devices, and the increasing demand for on-demand content.
According to a recent report by Statista, they projected the global OTT market
to reach $332.2 billion by 2025, up from $121.6 billion in 2020.
With video streaming services accounting for most of the revenue. With
its many benefits and advantages, OTT technology has disrupted the
media landscape and continues to reshape the industry.
What is OTT Technology?
OTT technology refers to the delivery of media content (such as TV shows,
movies, and music) over the Internet, bypassing traditional distribution
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2. channels like cable and satellite TV. OTT stands for “over the top,” so they
deliver the content directly to the viewer, with no middleman.
In simple terms, it means that you can watch your favorite shows and
movies on platforms like Netflix,Hulu,and Amazon Prime Video, without
having to subscribe to a cable or satellite TV service. All you need is an
internet connection and a compatible device (like a smart TV, computer, or
mobile phone) to access the content.
READ MORE: 5 Simple Steps to Create Your Own OTT Platform
How Does OTT Technology Work?
OTT technology works by delivering media content over the internet using
specialized software and streaming protocols. This software is usually
built into apps or websites that you can access on your internet-connected
devices.
When you select a video or audio file to play, the software sends a request
to the content provider’s server. The server then sends the content to your
device in small chunks, which are played in real-time as they are received.
This process is called streaming.
To ensure smooth playback, OTT services use advanced video and audio
codecs to compress the content without losing quality. They also employ
adaptive streaming techniques, which adjust the quality of the content
based on your internet connection speed and device capabilities. This way,
you can enjoy your favorite shows and movies without buffering or
interruptions.
Overall, OTT technology has revolutionized the way we consume media
content, making it more accessible and convenient than ever before.
OTT Platform Technology
OTT platform technology is essential for streaming content over the top
(OTT) and typically comes in the form of downloadable software or in-
browser streaming tools. While some open-source options exist, the most
popular choices provide user-friendly graphical interfaces that make OTT
broadcasting accessible even to those with limited technological expertise.
These video hosting platforms offer a range of features, such as video
monetization, robust security, HTML5 video players, white-label
capabilities, brand customization, and API access, catering to various
budget requirements. Innovative OTT platform technology can be found
in solutions like Flicknexs, Webnexs VOD, Dacast, Vimeo OTT, and
Brightcove. For more detailed information on selecting the right OTT
platform, you can refer to our comprehensive comparison of the top 5
OTT service providers.
How OTT Technology is Changing the Media Industry
1. Disrupting traditional business models: OTT services are challenging
the traditional cable and satellite TV business model, which relies on
bundled channel packages and long-term contracts. With OTT, viewers
have more control over what they watch, when they watch it, and how
much they pay for it.

3. 2. Offering more diverse content:OTT services provide a platform for a
wider range of content creators and distributors to reach global
audiences, including independent filmmakers, niche content
providers, and foreign language productions. This has led to more
diverse and inclusive media offerings that cater to a broader range of
tastes and interests.
3. Changing viewing habits: OTT technology has shifted viewing habits
from scheduled programming to on-demand, personalized viewing
experiences. Viewers can now binge-watch entire seasons of shows or
watch a movie at their own pace, rather than waiting for a scheduled
broadcast.
4. Driving innovation:OTT technology has spurred innovation in content
creation, delivery, and monetization, with companies investing in
original programming, personalized recommendations, and targeted
advertising. This has resulted in a more competitive and dynamic
media landscape, with new players entering the market and traditional
players adapting to stay relevant.
Benefits of OTT Technology
1. Greater convenience: OTT technology enables viewers to watch their
favorite shows and movies on-demand‌and on any device. For example,
Netflix allows subscribers to stream content on their smart TVs,
laptops, tablets, or mobile phones, making it easier to watch on the go
or at home.
2. More choices:OTT services offer a wider variety of content than
traditional TV networks. For instance, Hulu offers a mix of popular TV
shows, movies, and original content, while HBO Max provides access to
blockbuster movies, exclusive shows, and classic films.
3. Lower costs:OTT services typically cost less than cable or satellite TV
packages. For instance, a Netflix subscription starts at $8.99 per
month, while a basic cable TV package can cost upwards of $50 per
month.
4. Personalized experiences:OTT technology enables viewers to create
personalized profiles and receive personalized recommendations based
on their viewing history. For instance, Amazon Prime Video suggests
shows and movies based on a user’s watch history, preferences, and
ratings.
5. No long-term commitments: OTT services don’t require long-term
commitments, contracts, or cancellation fees. For instance, viewers
can cancel their subscription to Disney+, without penalty.
READ MORE: Understanding the Differences Between IPTV and OTT
Advantages and Disadvantages of OTT Technology
Advantages:
1. Greater convenience for viewers:OTT technology allows viewers to
watch their favorite shows and movies on-demand, at any time, and on
any device.
2. More choices and content diversity: OTT services offer a wider variety
of content than traditional TV networks.

4. 3. Lower costs than traditional TV packages:OTT services typically cost
less than cable or satellite TV packages.
4. Personalized viewing experiences: OTT technology enables viewers to
create personalized profiles and receive personalized
recommendations based on their viewing history.
5. Flexibility to cancel without penalty:OTT services don’t require long-
term commitments, contracts, or cancellation fees.
Disadvantages:
1. Dependence on high-speed internet:OTT technology relies on a fast
and stable internet connection, which can be a challenge in areas with
limited access or poor connectivity.
2. Potential for buffering and technical issues: Video Streaming content
can be susceptible to buffering and technical glitches, which can
disrupt the viewing experience.
3. Quality of service can vary depending on location:The quality of OTT
services can vary depending on the viewer’s location and internet
service provider.
4. Potential for content piracy and security concerns:OTT services can
be vulnerable to content piracy and security breaches, which can
compromise the privacy and security of users.
5. Limited access to live events and sports content: OTT services may not
offer the same level of access to live events and sports content as
traditional TV networks, which can be a drawback for some viewers.
Conclusion
OTT technology has revolutionized the media industry, providing viewers
with greater convenience, more choices, and personalized experiences.
The technology has also opened up new opportunities for content creators
and distributors, creating a more diverse and dynamic media landscape.
As the demand for on-demand content continues to grow, the future of
OTT looks bright.
Experts believe that OTT technology will continue to innovate and evolve,
providing users with even more exciting and engaging content in the years
to come.
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Written by Suganya Mathivanan Follow
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