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The OTT industry is booming.

Market research shows that 71% of internet users log in to an over-the-top (OTT) service, and it’s projected that 27% of U.S. homes will cancel their cable TV subscriptions by the end of this year.

OTT services circumvent traditional media distribution channels such as telecommunications networks or cable television providers. As long as you have access to an internet connection — either locally or through a mobile network — you can access the complete service at your leisure.

OTT services are typically monetized via paid subscriptions, but there are exceptions. For example, some OTT platforms might offer in-app purchases or advertising.

The proliferation of IP-based telecommunication networks has facilitated the decoupling of application and network layers and enabled OTT providers to deliver their content and applications directly to end users.

This has all led to a major structural change and the need for new business models. With over 50% of North Americans maintaining Netflix subscriptions, it’s clear OTT content has come into its own.

OTT platforms bypass third-party networks that traditionally managed online content. The only things customers need are an internet connection and a compatible hardware device, such as mobile devices, personal computers, Smart TVs, digital media players.

Analysts point to two factors that have contributed to OTT’s meteoric rise in popularity: faster internet speeds and a global pandemic.

The shift from 3G to 4G technology gave a big boost to OTT and now with the 5G rollout underway, even greater things are expected due to 5G’s near zero latency allowing video streaming without the blemishes.

In the wake of COVID-19, OTT has taken advantage of quarantine dynamics where movie theatres and live concerts have been put on the back burner. OTT has presented a unique opportunity forlivestreaming large events like concerts, music festivals, conferences, and more that would have otherwise been canceled.

OTT is governed by the Federal Communications Commission (FCC).

Want to learn more? Tonex offers OTT TV training bootcamp, a 3-day course that overs principles behind Over the Top (OTT) including video, television and other services provided over the internet. OTT services are not delivered via a service provider’s own dedicated, managed network. 

OTT TV Training also covers advance over-the-top (OTT) online TV features, the direction of the broadband telecommunications industry, and the latest developments.

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