It may interest you to know that more than 64% of the internet users in the United States have a least one OTT channel subscription. Now, to be precise, these are 182 million subscribers, and out of this, Netflix alone has around 152 million subscribers.
As more and more engaging web series are launched on these platforms, the number of subscribers are expected to increase by every year or month. That’s quite self-explanatory that the OTT is ruling the cinema and entertainment world. Where we are discussing the whopping number of subscribers and the impact of OTT channels on the present generation, some of you may not be aware of what exactly OTT is. If you are one of those, here is something for you.
What is an OTT channel?
OTT means over-the-top. When unearthed, OTT was referred to as ‘over’ a cable box to streamline an uninterrupted stream of TV content on your devices. Unlike the regular cable boxes and dish TVs, OTT channels are streamed through the internet. Currently, the globe streams around 40 different OTT channels all over the world. Some of the highly popular OTT channels include –
Amazon Prime Video
Interesting Facts Defining the Power of OTT Channels –
Fact 1 – 74% of American households have a TV Connection.
A 2018 study by the Leichtman Research Group found that more than 74% of American households have an active TV connection. The millennials may have introduced and encouraged the OTT channels, but now even baby boomers are showcasing immense interest in it. With more and more people and households cutting the cord with cable wires and connecting to the OTT channels, the over-the-top platforms are on the peak of earning profits.
The average cost of TV connection costs in-between $85 to $100 per month, which is way less than subscribing to OTT channels. No wonder why Americans have started to invest in OTT channels than any other source of entertainment.
Researchers say that the high demand for subscriptions and SVOD services will develop a generation of ‘Skinny Bundles’ having premium subscriptions for Disney+Hotstar, Hulu, Netflix, HBO, and much more.
Fact 2 – Netflix exists from 1997
Some of you may be surprised or re-reading the headline stating 1997 as Netflix’s existence year. Yes, the fact is absolutely correct. Reed Hastings (the current CEO of Netflix) in association with Marc Randolph thought of creating a platform like Netflix in 1997. Where Hastings was the owner of a debugging software organization named Pure Atria, on the other hand, Randolph was its Co-Founder.
To continue with the idea of Netflix, both Hastings and Randolph sold the company ‘MicroWarehouse’ for $700 million.
Later, in the year 1998, Netflix.com started off as a DVD rental service. In those days, Netflix had an online dominant in the market named ‘Blockbuster Video’. When the Blockbuster Video fined Hastings $40, he claimed to come up with the idea of Netflix for the late return of Apollo 13.
With continuous improvisations in Netflix processing and functioning, Netflix grew to a family of more than 300,000 users in 2000, and since then, it has been increasing at a blazing speed. Growth did come with some lows and highs. And so did for Netflix. It does start on a good note but later improved, worked on the weaker sections, and brought a remarkable change in 2001.
And now as per a recent survey, around 15.8 million new subscribers added to the already giant Netflix team in 2020. With this, recently, researchers found people searching for questions like ‘can you download Netflix on Mac’ to which Apple responded in a big YES. People can stream to Netflix offline legally on their MacBooks. There are plenty of ways to view Netflix on Mac. Look for different DIYs or video tutorials to get on the easiest way.
Fact 3 – 55.1 Million People Will ‘Cut the Cords’ with TV Connections by 2022
As per eMarketer, TV connections are going wayside. With more and more OTT channels like Netflix, Hotstar, Voot, HBO, and many more stepping into the digital entertainment world, people are cutting cords with cable connections rapidly.
The same report further explains and predicts that around 30% more people will be cutting cords with TV connections by the end of 2020. As a major indicator of the blazing speed with which this change is occurring; this is the second time when the OTT channels are getting a better response than their predictions. And now, the future predictions say there is no slowing down.
But if the current and future generation will rely upon the digital platforms for the sake of entertainment, then what about the advertisements? Well, that’s what our next fact is all about.
Fact 4 – 74% of the Ad Buyers Market Will Increase the Expenses on TV Connections
After the TV connection service providers, it is the category of advertisers that see this change occurring on a massive scale. In 2019, Digiday Research reported that three-quarters of advertisers would prefer to increase their spend amount on connected TVs in the future.
With the overall income of around $56,500, the advertisers and AVOD have a land of opportunities to generate and share content on multiple channels. Where the CPMs for the connected TVs ranged the most to $20s, on the other hand, mobile and desktop rates are way higher than this. This made the world see some of the biggest media companies making their AVOD bets. For instance – Viacom acquisition of PlutoTV cost $340 million. PlutoTV was an advertising-funded live-streaming service.
With this, the researchers expect linear television to have countless opportunities awaiting in the future.
The Last Line –
Be it on a monthly or yearly basis, every smartphone user with an active internet connection looks upon an OTT channel once in a lifetime. Why? Well, for the sake of entertainment. The market of OTT platforms is flooded with countless web series, movies, and short movies that attracts millions of people throughout the world.