An OTT and an OVP – The Difference

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The video streaming industry has a lot of definitions that can be confusing. OTT and OVP are among them. Let’s dive into details and figure out what each one means. Let’s observe what is what.

What is OTT?

You may not be acquainted with the OTT term, but you likely use OTT service or OTT platform every day.

OTT refers to over-the-top delivery. It is a method of delivering content via the Internet. It competes with traditional delivery methods, such as cable television or satellite television. Popular examples of OTT services are Netflix and Amazon Prime. Also there are OTT services popular in their regions: TVALB, FIBRANET, SAT TV and others.

The OTT delivery refers not only to video content but to any content – messages, audio, and VoIP. But let’s focus on OTT video streaming services.

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Why is OTT so popular?

OTT services are on the rise due to the following reasons:

They operate on multiple devices due to OTT applications. Unlike cable or satellite television, OTT content can be delivered to any device that maintains an Internet connection, including Smart TVs, smartphones, tablets, and gaming consoles.
OTT services can be free of charge or offer a lower price compared to cable or satellite television. For example, cable TV may cost $50 a month and provide general channels, while an OTT service may charge $6 a month and offer more engaging content.
OTT services allow viewers to watch videos in the way they like. They offer users a rewind, catch-up, and video-on-demand functionality. So, people can watch a video in any way they want. For example, they can access content on-demand and rewind some scenes they don’t want to watch. Or they can start watching a video on one day and finish on another day.
OTT services don’t offer scheduled content. The exception is streaming television programs. But if the service offers on-demand videos, then viewers can access them anytime. There is no need to wait for a video to air.

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What is OVP?

OVP stands for an online video platform. While OTT is the method of content delivery, OVP is a provider of the content. It allows a provider to sell access to videos directly to an end-user.

Content providers can monetize videos using several ways:

Advertising. In this case, a platform usually earns money on ads that third-party companies ask to run on a platform for payment. More often, content is free. But sometimes providers offer two packages: one package without ads but with a higher price and one package with a lower price but with ads.
Subscriptions. Users purchase access to videos once a period. It can be a week, a month, a quarter, or a year. After payment, they get unlimited access to videos and can watch them anytime they want. The subscription-based model is one of the most popular ones.
Pay-per-view. This monetization model offers users to pay for each video they wish to watch. So, they purchase a video, and other videos remain inaccessible.

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OTT monetization is what businesses like about online video platforms the most.

What is also great about video platforms is that they can use different formats. You can publish videos you create and offer people purchase access to them. Or you can create a platform for user-generated content with a concept idea. It is up to you.