OTT (over-the-top)

Forecasts of use of technology

Researchers from Multimedia Research Group consider that content sales volume using OTT, will be over 11 billion dollars in 2012. Informa Telecoms&Media in the forecast for 2010 noted keen interest of players of the market in this technology, and Endurance Technology considers that OTT have a considerable potential to transform all TV-industry.

Advantages to business

OTT have interesting features. The technology of transcoding allows to transfer content to a set of types of devices – from a prefix-STB to the mobile phone and iPad. In it the potential of increase in consumption of video is hidden by users. The possibility of data transmission directly from the producer to the viewer allows to exclude the operator and to organize sales even to small producers of content. At the same time cable, satellite, operators can use IP-TV OTT as aggregators.

OTT is simple in management and integration and is economic in consumption of system resources. A content management system is used for the publication and authorization of viewing the kontetnt, it can be worldwide, direct enciphering of content happens on the party of the producer/aggregator. Delivery is performed by the companies which specialize in it. CDN-cet deliveries and distributions of content (Content Delivery Network or Content Distribution Network) — geographically distributed network infrastructure allowing to optimize delivery and distribution of content to end users on the Internet.

The OTT technology allows to protect content from unauthorized copying effectively. Such solutions are provided by Irdeto company. Its solutions generally allow to organize all process of delivery, protection and monetization of content. In particular, it was made for the German operator Sky Deutschland recently.

Advantages to users

First, the subscriber receives the user-friendly interface integrating navigation and social functions of commenting and assessment that will allow to orient in the increased quantity of video content from a great number of variegated providers – TV-operators, producers of premium content, superaggregators of Google and Amazon.com video and so forth.

Like use of a good paid TV-packet, the user can watch video differently: in the broadcasting mode, on demand, paying once or on a subscription. Also downloading of content on the device offline and free offers are available to it to viewing.

Demonstration of video can be made on the screen of the computer, the mobile phone, iPad. And via the video game console, blu-ray the player, a prefix-STB – on the TV screen. It allows to watch video using one account in any place and at any time. The user can configure individual programming and create the personal portal for obtaining video.

At all variety of opportunities expenses of users of OTT will be comparable to "the average check" at the normal operator of paid TV. At the same time the competition between producers of content will obviously lead to reduction in cost of services. Small additional expenses on STB for connection of service to the TV are possible.

Services on OTT

Already there are uniform services based on OTT technology. Are an example of such services – Hulu, Netflix, Hbb TV, YouView. So, for business of OTT is a perspective method of monetization of content, for users – convenience of the choice and its expansion.

Transition to OTT

Consumption of OTT of video from year to year continuously grows though for many suppliers of content this technology is not especially attractive as its use will cause increase in costs for improvement of technology, marketing expense. But in the circumstances providers do not have choice; they should or adapt to new technology trends, or leave the market.

2011 will become critical year for video on demand delivered by means of the Internet, it will occur thanks to start of such projects as YouView and Google TV. Despite a number of the problems arising when using OTT technology in the world, in general, this industry is very perspective both for providers of content, and for users.

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