Online streaming is one of the fastest growing industries. It’s easy to see why as we have more content than ever, and a steadily rising number of people are willing to pay for it. But which platform is right for your business? This guide breaks down what each platform offers so you know where exactly they best fit into your company’s strategy.
The “best ott platforms in world” is a question that has been asked many times. There are many different types of OTT platforms, so it can be difficult to decide which one is best for your business.
Over-the-top (OTT) platforms are those that transmit video content to users directly over the internet. As a result, marketers may use this form of video streaming service to promote their goods and services to users directly on their watching devices.
Targeted advertising, powerful analytics, and dynamic ad insertion that enables you to connect with your audience in a number of ways are just a few of the advantages of OTT advertising.
OTT channels are the way to go when it comes to communicating with current audiences. However, which OTT platform provider is best for your company? Continue reading to discover more about the finest OTT advertising and marketing tools.
What is an Over-the-Top (OTT) Platform?
Relaxing in front of your smart TV while watching your favorite Netflix program, listening to a podcast on your phone’s Spotify app, or viewing a New York Times newsreel on your laptop?
All of these acts have one thing in common: they are all carried out on over-the-top platforms.
Any information streamed directly from the internet is referred to as “over-the-top,” or “OTT” (as in, not through broadcast radio, network TV, or cable). OTT platforms have become some of the most fruitful advertising regions on the market in recent years, thanks to the rapid growth of streaming viewers.
While all OTT platforms need an internet connection to function, there are two sorts of OTT platforms that have an impact on how marketers may reach viewers: price structures and content source models.
Models of Pricing
Although all OTT material may be accessed over the internet, not all OTT platforms provide access in the same manner. All streaming services use one of three pricing methods to make their material available to customers:
- Subscription (SVOD for video) – Subscription plans are used by certain OTT platforms, in which users pay a (usually higher) charge to view content without commercials. This strategy is used by streaming services such as Netflix, Amazon Prime, and Disney Plus. Unfortunately for advertisers, it eliminates all advertising options.
- Ad-based (AVOD for video) — Other OTT providers rely entirely on adverts to replace subscription payments. Streaming services such as Tubi TV, Pluto TV, Sling TV, Xumo, and Sony Crackle fit within this strategy. Advertisers may find these to be fantastic possibilities depending on the platform.
- Hybrid — Hybrid models combine subscription plans with ad-based platforms to provide consumers with both subscription and ad-supported alternatives. Hulu, for example, provides viewers the option of a lower-cost ad-supported subscription or a higher-cost ad-free subscription. Similarly, Spotify provides ad-supported free accounts as well as premium subscriptions for ad-free listening.
Due to the lack of advertisements in subscription-only models, marketers must rely on ad-based or hybrid OTT platforms to reach their target audience.
Source of Information
The provenance of an OTT streaming platform’s content is another approach to distinguish it. While some streaming services (such as Netflix and Hulu) develop some of their own material, others (such as Fubo and Pluto TV) depend mostly on non-original programming from television networks.
The majority of OTT platforms fall into one of three categories:
- Native OTT platforms are streaming services that develop their own original content. Netflix, Hulu, Amazon Prime, and HBO Max, for example, are native services since they create original content that can only be seen on their platform.
- When viewing live television, you have access to a variety of stations and networks, like the Discovery Channel, CBS, and Cartoon Network. These networks, on the other hand, provide streaming applications that let consumers to access their aired programming on a streaming device like a laptop or smartphone. TV publishers are the term for these sorts of OTT services.
- Linear Streaming – Linear streaming is similar to traditional television programming in that it allows viewers to watch live television shows scheduled to run at particular times via the internet rather than through broadcast or cable. Linear streaming is used by OTT companies including Sling, Pluto TV, and Fubo.
Many OTT services use a variety of sources. Peacock TV (NBCUniversal’s streaming portal), for example, combines original content with re-released NBC series and live news.
Knowing where a platform’s content comes from might help you determine whether it’s the correct place for you to advertise.
Businesses’ Favorite OTT Platforms
OTT services have seen rapid growth in terms of viewing in recent years, and show no signs of slowing down. The worldwide OTT sector was worth $121.61 billion in 2019, with forecasts of $1.039 trillion by 2027. 1
It’s a definite hotspot for customer attention for companies.
Take a look at our list of the finest OTT platforms for advertising firms to see which one will work best for your advertising campaign and marketing plan.
Spotify is ranked number one.
Spotify is the world’s most popular audio streaming service, with millions of users enjoying their favorite music, podcasts, and videos. It’s especially valuable for companies trying to reach out to a worldwide audience with specific interests.
- Spotify mainly offers audio material in the form of music and podcasts. For those who want both an audible and visual experience, it also offers creator-made video podcasts. Many of the podcasts are native content, which means they were created and are only available on Spotify. However, the majority of material on the site is secondary, meaning it was generated and uploaded by someone other than the platform’s creators, such as a podcast producer or a musician.
- Spotify’s pricing is based on a hybrid concept. Listeners who choose for a free subscription will be subjected to several advertisements during their listening experience. Listeners who pay $9.99 a month for a premium subscription, on the other hand, will be free of advertisements.
- Spotify’s total monthly subscribers increased from 173 million to 356 million between 2017 and 2020. 2 There are 198 million unsubscribed users with ad-supported listening within that number, providing it a wonderful platform for advertisers to promote their goods or services.
- Spotify’s audience demographics are worldwide and young, with listeners in over 178 global markets3 and over 55 percent of users under the age of 35. 4
The Roku Channel (#2)
Roku originated as a cable television (CTV) device that connected televisions to internet streaming services. However, in 2017, it launched The Roku Channel, its own OTT channel. Roku became the most popular Advertising Video on Demand (AVOD) streaming service in the United States after integrating its device with a platform.
- On its platform, the Roku Channel delivers a mix of secondary and original video content. The majority of its original material, on the other hand, was acquired from Quibi, a failing mobile-only OTT platform. 5
- The Roku Channel is solely based on an AVOD (ad-based) business. The Roku device, on the other hand, connects users to ad-free subscriptions to other OTT services, such as Netflix.
- Guests – The Roku Channel has approximately 70 million viewers at the start of 2021, up from 23.8 million in 2018. 7
- Roku’s viewership is quite evenly distributed, with a median viewing age of 39.8 years. Its material is currently only available to viewers in the United States, Canada, and the United Kingdom. 9 Furthermore, 64% of Roku Channel users don’t use any other AVOD platform, making it their exclusive source of streaming advertisements. 10
Hulu, which debuted in 2008, is one of the first (and now most popular) OTT video streaming services. It’s a useful advertising alternative for marketers and enterprises because of its millions of users and constant development.
- Hulu’s programming consists of a combination of original, secondary, and live video. It’s most known for airing new TV shows, which are normally released 1-2 days following their broadcast or cable launch.
- Hulu has a hybrid pricing approach that includes different subscription packages. Pre-recorded material with commercials is included in the cheapest package ($5.99/month), while all live and pre-recorded content with no ads is included in the most expensive plan ($70.99/month).
- Hulu has 41.6 million customers as of 2021,11 with around 60% accessing content via an ad-supported subscription. 12
- Hulu’s viewership is mostly suburban/rural, Caucasian, and lower-income. 13 Hulu is also exclusively accessible in the United States and Japan.
#4 Peacock Television
Peacock TV is a relatively new OTT service. Advertisers searching for rising audiences and ad-supported content should check out the NBCUniversal-owned platform.
- Peacock TV’s material is a mix of original, secondary (or re-published), and live video. The majority of its secondary material comes from NBC and Comcast.
- Peacock’s price scheme is now a three-tiered hybrid pricing model. The first tier enables users to see a limited amount of material for free while being exposed to advertisements. Viewers may also pay $4.99 per month for exclusive material with advertising. Alternatively, viewers may pay $9.99 per month for an ad-free experience and full access to all of the platform’s content.
- Peacock TV has 54 million overall viewers and 10 million paid customers since July 2021. 14 Only 4% of users, on the other hand, pay for the ad-free premium tier. 15
- Peacock TV’s viewership is more suburban and liberal than those of other video streaming services. 13 The viewers’ ages and economic levels are quite equally dispersed.
Tubi is a one-of-a-kind platform that is one of the most popular linear streaming services in the United States, with an ad-supported strategy and a youthful audience that makes it a feasible option for companies.
- Tubi exclusively transmits “live” streaming or planned programs on channels comparable to those on broadcast TV as a linear streaming platform. More than 20,000 films and TV series from 250 different content partners are available in its collection. 16
- Tubi’s pricing approach is entirely ad-supported, with no ad-free alternative.
- Tubi has 33 million monthly active users as of January 2021. 17
- Tubi’s demographics are younger and more diversified than broadcast television. Half of its viewers are under 35, while Black, Hispanic, or Asian people make up 39% of the viewership. 18
SagaReach Marketing can help you create an OTT power plan.
OTT platforms are the future billboard, not merely a fashionable hotspot for advertising. As existing streaming services expand and new ones arise, choosing the correct OTT platform is critical for efficiently and successfully promoting your company.
Do you need some assistance entering into the realm of OTT platforms? Powder Digital Marketing offers the in-depth research and professional knowledge to assist you in developing a tailored strategy for your company’s success. Our digital marketing services may help you get the answers you’re searching for.
- Allied Market Research is a company that specializes in market research. Market Forecast for Over-the-Top (OTT) – 2027 https://www.alliedmarketresearch.com/over-the-top-services-market
- J. Porter The number of Spotify premium customers has grown by 21% to 158 million https://www.theverge.com/2021/4/28/22405953/spotify-earnings-q1-2021-subscribers-average-revenue-per-user
- Spotify’s company profile. https://newsroom.spotify.com/company-info/
- M. Iqbal, M. Iqbal, M. Iqbal, M Revenue and Usage Statistics for Spotify (2021). https://www.businessofapps.com/data/spotify-statistics/
- On May 20, Roku will debut original programming based on Quibi’s content. https://techcrunch.com/2021/05/13/roku-launches-an-original-programming-lineup-fueled-by-quibis-content/
- Roku generates a large revenue rise in Q1 despite a slowing in user growth, according to B. Mensun. https://www.fiercevideo.com/video/roku-sparks-big-q1-revenue-growth-despite-user-growth-slowdown
- What to Look Out For Subscribers and earnings on Roku. https://www.whattowatch.com/news/rokus-earnings
- Roku’s NewFront Pitch: Why Target 60+ When You Can Reach Under 40? Frankel, D. https://www.nexttv.com/news/rokus-newfront-pitch-why-target-60-when-you-can-reach-under-40
- Roku. What are Roku® Channel Premium Subscriptions? https://support.roku.com/article/360016436834
- Roku. Roku’s Presentation at Newfronts 2021: 3 Highlights https://advertising.roku.com/blog/news-events/roku-newfronts-2021-presentation
- D. Walborn Hulu gains 41.6 million total subscribers, but loses 200,000 on Hulu Live TV. https://thestreamable.com/news/hulu-q1-2021
- J. Kotuby, J. Kotuby, J. Kotuby, J. Kotuby, J. Kotuby, J. Kotuby, J. Kotuby, J. Kotuby, J. Kotuby https://thestreamable.com/news/hulu-continues-to-see-most-customers-choose-ad-supported-plan
- Paramount+ Is Entering a Crowded Streaming Market, by S. Shevenock. What Will Persuade Customers to Subscribe? https://morningconsult.com/2021/03/01/paramount-plus-streaming-subscriber-demographics/
- Inside Comcast’s Plan to Become a Streaming Giant, L. Rizzo. https://www.wsj.com/articles/comcasts-ceo-built-a-cable-giant-can-he-build-a-streaming-giant-11624473722
- J. Kotuby, J. Kotuby, J. Kotuby, J Could NBCUniversal and WarnerMedia join together to compete with Disney+? https://thestreamable.com/news/could-nbcuniversal-and-warnermedia-team-up-to-take-down-disney
- S. Perez MGM, Lionsgate, and others have given Tubi TV $6 million for their free, ad-supported streaming service. https://techcrunch.com/2015/11/19/tubi-tv-grabs-6-million-from-mgm-lionsgate-and-others-for-its-free-ad-supported-streaming-service/
- E. Gruenwedel, E. Gruenwedel, E. Gruenwedel, Free Services Are Changing the Streaming Landscape: AVOD on the FAST Track https://www.mediaplaynews.com/avod-on-the-fast-track/
- D. Tubi, Hayes, D. Tubi, Hayes, D. Tubi, Hayes, D. Tubi, Hayes, D. Tubi, Hayes, D. Tubi, Hayes, D. Tubi, Hayes, D. Tubi https://deadline.com/2021/01/tubi-streaming-rose-58-percent-2020-viewers-under-35-1234676400/
Frequently Asked Questions
Which is the most successful OTT platform?
A: Netflix is the most successful OTT platform.
How do I choose an OTT platform?
A: This is a difficult question to answer. OTT platforms are new and theres not enough data on how people use them yet. There may be certain factors that can help you decide what platform will work for your business, such as the size of your audience or the demographics of those who watch online video content like yours.
What is business OTT platform?
A: Business OTT platform refers to a system that allows you to order or view content from any device, anywhere on the web.
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