During the pandemic, the condition of cinema both abroad and domestically experienced a bleak period because of the loss of its visitors. Many of the movie lovers are getting to know OTT services like Netflix, Disney+ Hotstar, Apple TV, Hulu, Viu, Vidio, or Iflix. According to a survey conducted by Media Partners Asia (MPA) in January 2021, Netflix already has around 850 million subscribers in Indonesia. This is followed by Disney+ Hotstar which also has more than 2.5 million subscribers.

This shows an increase in the number of people who know OTT services through the above platforms. With the pandemic down, most people still use OTT services instead of cable and satellite TV or going to the movies.

However, are you familiar with OTT services with cutting-edge technology in them? And do you know how this platform actually works?

Understanding OTT

In simple terms, OTT is a medium or streaming platform, such as movies, television shows, or series aired by various Production Houses. To access it you can simply use a device, either a smartphone, PC, laptop, or smart TV, which is connected via the internet.

Over The Top or what we know as OTT actually refers to the method of delivering content via the internet. Understanding these definitions, OTT can refer to a variety of services, such as video and audio streaming, messaging, and VoIP.

The use of the term Over The Top or bypassing conventional platforms, indicates a significant difference with broadcasting, cable, or satellite TV platforms, which govern their broadcasting. Through this method, any user can stream any content at any time as long as the device is connected to the internet adequately.

Difference between OTT and VOD

Is OTT the same as VOD (Video On Demand)? Different of course! OTT is a content distribution service (video, film, and TV) sent over the internet, while VOD only provides content consumption model services that can be played back on demand. So in short, OTT also has features like VOD, while VOD is just one of the features in OTT.

One OTT service that is not available in VOD is live streaming. An example is a Premier League football match that is broadcast live on Mola TV, one of the OTT service providers, which cannot be considered part of VOD.

Reasons OTT Platforms Are Becoming Popular

OTT has become very popular till now due to its accessibility. Simply with a high-speed internet connection and connected devices that support apps or browsers, such as PCs, smart TVs, smartphones, and tablets, you can enjoy it.

The second reason is the relatively low monthly subscription price to be able to enjoy a variety of content with a duration of 24/7 during the validity period. With the characteristics of OTT services, each OTT provider or platform can be creative with their monetization methods with several methods to get income, ranging from Ad-Based Video On Demand (AVOD), Subscription-Based Video On Demand (SVOD), to Transactional Video On Demand (TVOD).

OTT as a Means of Improving the Digital Economy

Through OTT services in Indonesia and the number of customers that have soared since the pandemic, indirectly making the digital economy in Indonesia also increase. The increase in the digital economy was achieved from the 10% tax imposed on OTT platforms present in Indonesia.

This is also supported by OTT platforms which also provide space for Indonesian Production Houses to broadcast their content specifically on the platform. With this broadcasting right, many human resources also benefit from OTT platforms.

A lot of information and developments in digital technology around you need to be understood more deeply. This has the potential also for the development of your business. Want to know various information related to the latest digital technology? Or do you need the help of a partner who is an expert in the field of digital technology? Contact Telkom DWS immediately!