OTT App Development Services

First, about the very concept of OTT technology. It is a way to broadcast video content over the Internet. The video signal from the content author through the provider goes directly to the user's device.

Only data networks are involved through which access to the «World Wide Web» is provided. For traditional IPTV services the signal is usually broadcast through a dedicated network or channel owned by the operator. A distinctive feature of such a connection is the guaranteed QoS (QoE) protocol.

Custom OTT platform ‒ peculiarities

The main feature of the OTT services implementation is the ability to provide a service to any user via the Internet directly. This provides:

1. 01

   Provision of encrypted channels with the opportunity of legal recording of individual broadcasts on subscriber devices, including by subscription.
2. 02

   Transcoding content (channels and movies) into various formats for viewing on a computer, TV or any other consumers gadjets.
3. 03

   Providing content on demand with the ability to view online and download to a subscriber device for further viewing.

This allows to use content more efficiently, attract new subscribers and increase business profitability through service differentiation and the introduction of online sales.

OTT platforms: main problems and why is better to invite the professionals

An increasing audience requires ubiquitous access to videos (along with audios, however). The «World Wide Web» makes this possible through the HTTP transport protocol.

The Internet is unmanaged and independent. This means that the width of the conditional "bands" for broadcasting anything depends only on the degree of network congestion. Only this factor affects the quality of playback, as well as whether the recording will periodically pass through buffering sections, during which the video will lag. This effect greatly spoils the user experience. This issue is most relevant for networks distributing mobile net.

This negative effect can completely discourage potential viewers from using at least some service for broadcasting video content over the «World Wide Web». And the developers of any OTT platform try to circumvent this network vulnerability in different ways. One way is to adapt platforms for all kinds of user devices: for a personal computer, set-top box (STB), TV, smartphone, etc. One more way is to create OTT streaming app, for example.

The principle here is simple: the TV, as a rule, is stationary, as a rule, a broadband high-speed net channel leads to it. At the same time there is no need to save on traffic here ‒ the user prefers to watch movies on the big screen in the appropriate quality.

Smartphones have small screens, and the human eye simply cannot recognize such high detail as a computer monitor, for example. This means that you can save on traffic in favor of a higher stream playback speed. This is what smart OTT technologies are all about.

Also of great importance is the compatibility of OTT with the existing content playback system: protocols, formats, etc. Any OTT platform is fully compatible and adaptive.

Does your company have enough qualified OTT app developers who have the necessary skills to cope with all these difficulties and solve the problems of implementing an OTT apps? If not, then you should not “reinvent the wheel” ‒ refer to proven ways to solve the problem of lack of competencies. Hire the required specialists in the firms that specialize themselves in providing such employees for temporary employment under smart contracts.

Monetization as a big problem of OTT platform development

How are services now making money on video content?

• Some provide access to view for free, however, they insert commercials into the track (for example, the «Hulu» service).
• Other operators introduce «World Wide Web»-Set-Top-Box prefix among users.
• And some people combine DVDs with online viewing (example – «Netflix»). But you must subscribe to these services in order to use them, however.

The main problem with all monetization methods is that they are all extremely inconvenient for customers. Either the user must buy some unique equipment that will not be useful to him anywhere else, or constantly exchange DVDs, or he needs to subscribe and always be loyal to this service (just some kind of marriage!).

The real need of the market for easier monetization both from the user side and from the standpoint of services creates a high growth potential for this area. It may even be about developing a real new ideology of monetization based on new principles!

To start development you will need competent OTT app developers, in any case. Hire them and your research will go more actively.

OTT apps – monetization models

«Informa Telecoms & Media» company has identified the following monetization models used by OTT providers:

1. 01

   Linear broadcast. This is a classic Web TV ‒ broadcasting TV channels over the Internet. Providers in this case earn from providing access to channels by subscription. The same model has been exploited for the long rime by satellite television operators.
2. 02

   AVOD (advertising VoD) model. In this case, the free-to-play video is interrupted by a series of commercials. Videos are usually provided in SD format.
3. 03

   EST (electronic sell through) model. Viewers are encouraged to purchase digital copies of the content (e.g. on DVD).
4. 04

   TVoD (transactional VoD) model. Different content is paid differently (PPV ‒ pay-per-view). In fact, the content is leased. A prime example here is Apple TV, which offers the following purchase restrictions: viewing can be started within 30 days of subscription, and if viewing has already started, then users must end it within 24 or 48 hours.
5. 05

   SVoD (subscription VoD) model. Here access is provided to all content available on the service but only for the duration of the subscription. (Sometimes using OTT TV apps).

When developing OTT applications, first of all, you need to provide a mechanism for generating revenue. We are talking about monetization, and based on the above, it becomes obvious that this is not so easy to do.

Do your employees have sufficient knowledge and skills to construct this virtual mechanism? Do they have the necessary experience? Will it not turn out that even a whole team of full-time certified programmers will not be able to cope with this task? Indeed, in this case, the project of a promising OTT application will remain an unrealized fantasy.

To prevent this from happening hire someone who knows exactly what needs to be done and what monetization model to implement, depending on the architecture of your software idea. Hire truly competent and experienced professionals.

OTT platform development ‒ market structure and its attractiveness for business

Artificial intelligence technologies which are used by OTT platforms ensure the availability of video content without high technical requirements. Here are the main distribution sectors of OTT platforms:

• Online cinemas. They make it possible to watch movies both directly on the site and through applications and Smart TV.
• Web TV channels. This is a complete analogue of free TV channels with traditional commercial breaks.
• Pay TV. It's like cable TV. They provide the ability to view content on STB-set-top boxes in VOD format. In addition, virtual cinemas are being created on some channels.
• Digital distribution platforms. They are video content aggregators. You can view it through applications for Smart TV and mobile platforms.

There is money to be made in the OTT app market, obviously. The audience here has been exceptionally growing in recent years, and there was no period (even a month) when it would decrease.

This means that now is the time to carve your own market niche with a newly developed OTT application. The probability of success in this case is much higher than 75% but only on one condition - if the development of this OTT application will be carried out by specialists competent in all related industries.

Only this will guarantee that the application layout process will not turn into an endless “soap opera” with regularly violated deadlines and indistinct results. A working, monetizing OTT application is required and in the shortest possible time. This can only be provided by highly qualified specialists, and you have the opportunity to hire them at «Alfee».

Perspectives of OTT application development for western market. Best OTT apps

In its forecast for 2010, «Informa Telecoms&Media» (a leading telecommunications analytics company) predicted explosive growth in OTT technology among IPTV operators.

Content providers now have the ability to sell directly to viewers. In 2012 «Informa Telecoms&Media» estimated the global video content market at almost $11 billion. It was assumed that the subscription segment would develop most dynamically (as the easiest to monetize) ‒ its annual growth rate would be 32%.

A colleague of «Informa Telecoms&Media» in the workshop, «Multimedia Research Group», estimated the size of the OTT market by 2022 at $29 billion. At the same time, by 2023, growth is projected to reach $32.7 billion (3 times more than in 2012). In this case, monetization will have the following structure:

• sale of advertising ‒ 49%;
• sale of content ‒ 14% (subscriptions, etc.);
• subscription income ‒ 37%.

Most analysts predict significant growth in this pay TV sector over the next 1-3 years. OTT services are provided by firms such as:

• «Amazon.com Inc.»;
• «Apple Inc.»;
• «Blockbuster Inc.»;
• «Comcast» (Fancast);
• «Disney»;
• «BBC» (I-Player) (so far only on PC);
• «Google/YouTube»;
• «Hulu»;
• «Microsoft Corporation»;
• «Netflix Inc.» (Online Video Service);
• «Sonic Solutions» (CinemaNow);
• «Sony» (OTT Service);
• «TiVo Inc.»;
• «VUDU Inc.» (ISTB+Service);
• «Yahoo! Inc.» (Video Service);
• «Kartina.TV».

It's time to take your own place in this market. And it’s better to do it with the help of highly qualified IT developers that you can hire to make your OTT project a reality. So you can be sure of the timing and quality.

Perspectives of OTT platforms. Russian market

The total volume of Russian OTT services for 2012 was 1.1 billion rubles. At the same time, the market has almost doubled since the previous year. (According to the company «Direct Info»). The monetization structure was as follows:

• 45% ‒ purchase of content and subscriptions;
• 55% ‒ video advertising.

But by 2022, the OTT services market has grown 18 times compared to 2012, to 18.8 billion rubles. At the same time, positions in the structure of monetization have changed places.

The total number of unique users at the beginning of 2022 was 25.3 million people, and by 2023 this figure is likely to grow to 28 million people.

Several dozen players operate on the Russian market. They can be conditionally divided into:

1. 01

   manufacturers of TV equipment and app development services;
2. 02

   independent firms and large media companies that monetize access to their own content through OTT;
3. 03

   Large telecommunications companies also operate on the market, in particular Rostelecom, Megafon, Beeline and MTS.

OTT development services operating under a hybrid monetization scheme are also presented on the Russian market. They offer free ad-supported content (AVoD), subscription-based premium content (SVoD), or paid-for content (TVoD/EST).

Since the end of 2019, new rules for copyright protection have come into effect in Russia. As a result, the broadcasting of OTT versions of TV channels is carried out under new conditions, while limiting the broadcasts of some channels is envisaged (including several mobile apps and video streaming services).

These statistics indicate a high user interest in this sector of Internet content. Therefore, it would be an unforgivable mistake for OTT app development company to ignore custom OTT app development, especially since competition in the domestic OTT technology market is very limited (there is only smart tv appon russian market still).

The most logical and reasonable step at the moment is the development and release to the market of your own OTT application with an original monetization system. This must be done with a highly professional, competent development team, where all participants have the necessary knowledge, skills and experience, however.

Only this will give ott platform development services a guarantee of achieving the desired results and quick monetization of conceived projects (OTT apps and their maintenanceor something else). Hire our specialists for your company and you will succeed with our app builders.

Yes, OTT app development cost is rather high, but the benefits of positive solution about the hiring expert-developers will let you earn money in huge volumes in nearest future ‒ it means business growth. But negative solution about hiring will cost your business in digital world.