Cable companies are getting obsolete. They offer inflexible television programming at a high price. With the rise of online streaming services, people tend to cut the cord and turn to them. OTT services give more benefits both for businesses and viewers. In this article, we are going to cover what are these benefits that lure people.
So, why is an OTT service an excellent alternative to cable TV?
Here’s the list of reasons why:
#1 Monetization capabilities
OTT is a delivery method that helps companies arrange different Internet services. But here, we are talking about video streaming services that can be created with the help of OTT technology.
With OTT, video-on-demand services are created. They allow videos to be monetized in many ways. For example, one of the most common services is AVOD. It offers free content to viewers. How does it generate revenue, then? Simply. Third parties pay the platform for showing their ads to users. Ads are flexibly inserted and can be targeted specifically at those people who might be interested in certain services or products.
If interested, learn how server-side ad insertion works.
Among other standard monetization models are TVOD and SVOD. TVOD offers viewers to pay for a particular video they want to watch right now. SVOD allows people to purchase access to a service for some time: a week, a month, a quarter, or a year.
People turn to online video streaming services because they are not only flexible but also cheaper than cable TV. As a result, they offer videos at a lower price and have more benefits than cable television.
For example, Netflix’s lowest price is $9,99, and the highest is $19,99, while cable companies’ plans can start from $40,00. Moreover, they require a long-term contract to sign. OTT services don’t demand that. Viewers can cancel a subscription anytime they want.
#2 Multi-platform opportunity
While cable TV operates only on TVs, online video streaming services are available on many devices. It is another reason why people appreciate them so much. It also contributes to the flexibility of service.
People can watch videos on laptops, Smart TVs, smartphones, and tablets. They can start watching a video on one device and continue on the other. They can watch videos when not at home but in a cafe or on a bus.
What is more, video streaming services offer packages for families. So, family members can use the same platform but have different profiles. It is convenient because they will save an individual history of watched videos and then offer recommendations based on this information.
Also, families don’t need to invest in different devices. Some people don’t have TVs in their homes anymore. They prefer watching videos on smartphones or laptops. Service availability on other devices allows people to use the gadgets they have.
#3 VOD, rewind, and catch-ups
OTT allows offering a video-on-demand service to viewers. So, they can watch videos at any time they wish to. The great flexibility will enable people to decide when they want to watch a video. No standard schedule simplifies that. Videos are pre-recorded and stored, and users can access them anytime.
Also, if a service streams television content, there are usually rewind and catch-up features. Rewind allows viewers to return to the beginning or rewatch some scenes of a video that is on air now. Catch-up is about recording a video and watching it later.
All these features offer more flexibility and convenience to a user. Cable television follows a fixed schedule, and a person needs to be free when a show or a program starts. If they miss it, there is no opportunity to watch it later.
#4 Fewer advertising
Cable companies tend to advertise a lot. They run many ads before a video starts and in the middle. Sometimes a video is interrupted with ads several times.
The other frustrating part is that there are several of these ads. So many of them are played in a row. And there is no way to skip them.
What concerns OTT video streaming services, some of them don’t even have advertisements. Those that have them usually play two or three ads. These ads last several seconds. So, a viewer doesn’t need to wait for a long time to start watching a video they choose.
Also, if a video is interrupted with ads, there are not many of them. And they finish quickly. Some services allow users to watch several seconds of an ad video and then skip it. So, these advertisements are not so frustrating.
Conclusion:
Of course, cable TV has advantages, and OTT services have disadvantages. But we think that the benefits of online video streaming surpass the advantages of television. So we tried to draw a clear picture of why OTT services are an excellent alternative to cable TV.
