Over-the-top (OTT) streaming has become a dominant force in the entertainment industry, shaping how people consume media around the world. As we move into 2024, The future of OTT streaming sees a significant shift with the appearance of new technology, innovative advertising strategies, business models, and viewer preferences. All these will influence the way content is delivered and consumed.
With subscription fatigue showing up as the latest roadblock for OTT providers, every area of home entertainment spending has declined over the past five years. However, the video-on-demand trends show that the revenue in 2024 was US$182.40bn, but it’s expected to reach a projected market volume of US$231.50bn by 2027.
With the expansion of the OTT industry, 24.6 million U.S. households have cut their TV cord. So, it is no surprise to expect that this number will rise to 46.6 million U.S. households by the end of 2024.
Join us to learn some of the latest OTT trends you should definitely watch for. Take a look at some of the streaming service trends 2024.
Table of Contents
- What Is OTT and Why Is It Relevant?
- Top 12 OTT Industry Trends Going into 2024
- AI-Powered Personalization
- Rise of Niche OTT Platforms
- OTT Advertising Innovations
- Emergence of Hybrid Streaming Models
- TV Channels and Pay TV will Transfer to OTT
- Focus on OTT User Experience
- 4K and 8K Streaming Advancements
- Smart TVs Take Over
- Use of Voice Control as a Remote
- Interactive Content
- Social Features and Expansion of Binge-Watching Culture
- Cloud-Based OTT Solutions
- Conclusion: OTT Trends in 2024 and Beyond
What is OTT and Why is it Relevant?
OTT stands for “over-the-top,” which primarily refers to media distribution over the internet, bypassing traditional broadcasting or cable TV providers. Some industry leaders advocate that we stop entirely differentiating between OTT and broadcast TV. Therefore, we currently face a future in which all TV is distributed via OTT live streaming.
With the streaming media evolution, and the decline of the traditional TV model over the years, OTT technology represents the future of how we consume entertainment. It allows consumers direct access to media through different platforms, providing flexible, on-demand, personalized streaming experiences. Consumers can now watch what they want when they want and on their preferred device.
It’s safe to say that the technology informing OTT trends enters a period of maturity and becomes more settled, with more solid technologies underlying VOD and live streaming. With OTT reshaping the media landscape, keeping an eye on the streaming service trends 2024 will be essential for understanding where the industry is headed.
Top 12 OTT Industry Trends Going into 2024
OTT industry trends change along with OTT technology advancements and personalized streaming experiences. Join us as we examine OTT trends in the streaming solutions market.
1. AI-Powered Personalization
One of the most significant OTT trends in 2024 is the continued focus on personalized streaming experiences. Platforms are leveraging advanced recommendation algorithms and AI to curate content for individual users. The AI for video streaming trend is driven by the need to enhance user engagement and satisfaction by offering tailored suggestions based on viewing habits, preferences, and behavioral patterns.
AI-powered personalization is used to provide a more curated and relevant content experience. This is done through the recommendation of content that resonates with the interests and preferences of the viewer. As a result, platforms will increase the overall OTT user experience.
2. Rise of Niche OTT Platforms
With the OTT market growth, big names continue dominating the industry, but it’s safe to say that niche OTT platforms are carving out their own space. They cater to specific audiences and interests and are dedicated to a particular genre, language, culture, or hobby. Niche OTT services offer exclusive, hyper-focused content that larger platforms may not provide.
It is expected that OTT video hosting platforms in 2024 will continue to rise as more viewers seek specialized content. With certain groups of audiences feeling overlooked by mainstream content providers, niche platforms will establish loyal user communities who are passionate about a certain niche.
3. OTT Advertising Innovations
With advertising accounting for around 28% of the global streaming revenue, it’s no wonder that OTT advertising is currently undergoing significant transformation. One of the OTT platform innovations is to experiment with new ways to target viewers more effectively. OTT advertising strategies will focus on dynamic ad insertion, where personalized ads are delivered based on user data. This will allow advertisers to create more relevant and engaging ad experiences.
Video analytics will be used to monitor viewer engagement and optimize ad placements.
With audiences being deterred by fees for OTT subscription models, ad-supported streaming is a way to get them back.
4. Emergence of Hybrid Streaming Models
As viewers demand more options for accessing content, hybrid streaming models that blend different content monetization methods are set to gain momentum. Models like SVOD (subscription video on demand) and AVOD (advertising video on demand) are well-established in OTT streaming. What is a novelty that is gaining popularity is the appearance of hybrid streaming models. OTT services are increasingly adopting the approach of combining SVOD, AVOD, and TVOD (transactional video on demand) models to cater to a whole range of viewer preferences.
Hybrid models provide more flexibility for consumers, allowing them to choose between ad-supported free content or ad-free paid options. At the same time, users have more control over how they access and pay for their media.
5. TV Channels and Pay TV will Transfer to OTT
We can’t help but notice that more TV channels are making the leap to OTT platforms. Viewers are now free to choose from a wide selection of online streaming services offering unique features and content. The limitations of traditional cable packages are slowly going down in history.
The idea behind this is for TV channels to bypass cable subscriptions and directly reach out to audiences through the OTT solution providers. This way, they will enter the growing trend of on-demand streaming services. OTT platforms increase customer loyalty through content discovery algorithms, personalized recommendations, and seamless streaming experiences.
This trend is an excellent way for TV channels and cable providers to remain competitive in the market and address evolving consumer preferences.
6. Focus on the OTT User Experience
In the streaming industry predictions, user experience (UX) is an important factor for the success of OTT platforms, which is why it will be a top priority for providers in 2024. Platforms will invest in fast load times, intuitive interfaces, and seamless content discovery to improve user satisfaction. Keeping the users engaged will mean enhancing features like personalized watchlists, smart recommendations, and voice searches.
OTT user experience (UX) has contributed greatly to the success of platforms. Viewers prefer using streaming services with interfaces and easy navigation. They also want the best selection of content.
For example, if you compare Netflix and Hulu, you will see that the Netflix platform is easy to navigate, pleasing to the eye, and the selection of content is quite expansive. Both platforms have released some phenomenal movies and series, but Netflix does so on a larger scale.
Generally, Netflix is more in tune with creating personalized streaming experiences. Their content recommendation algorithms are user-friendly, while their app is easy to navigate on most devices. On the other hand, Hulu’s platform is a little clunky, and its search engine isn’t as sharp as it seems.
However, Hulu has one advantage over Netflix. They release episodes within hours after they air on live TV. Another interesting thing to point out is that Hulu releases original series in the same fashion that traditional television does by airing only one episode a week. Netflix releases entire seasons at a time, which makes the shows bingeable.
In general, users prefer Netflix, which is the reason it is worth a whopping 10 times more than Hulu. Of course, these are just two of many streaming platforms, but this quick comparison should give you a good idea of what users value.
There is also the rise of cross-device streaming, which means platforms will focus on creating consistent user experience across smart TVs, tablets, smartphones, and gaming consoles.
7. 4K and 8K Streaming Advancements
The consumer’s demand for high definition video is always present, which is why the adoption of 8K and 4K streaming trends will rise in 2024. It is understandable that viewers expect top-notch visuals, especially for live sports events, big-budget movies, and nature documentaries. Using these OTT technological advancements, platforms are always working on improving their content delivery network in order to support ultra-high-definition (UHD) streaming.
However, streaming in 4K and 8K requires advanced infrastructure and substantial bandwidth. With the global improvement of bandwidth capacities and internet speeds, these cloud-based OTT solutions will be able to deliver more UHD content.
8. Smart TVs Take Over
Compared to traditional devices, it’s no secret that smart TVs are stealing the show. Watching their favorite shows on a large screen and in the comfort of their home allows viewers to engage deeply with the content. This demand for adopting smart TVs has brought about the popularity of Connected TV (CTV) for streaming content on televisions via OTT technology. This is made possible through smart TVs, gaming consoles, and dedicated streaming devices.
Interestingly enough, the increase in CTV streaming has not caused a significant decrease in streaming on smartphones, tablets, and computers. For a few years, there was a general preference towards mobile streaming, so it will be interesting to see how this trend looks going forward.
Some popular technology for CTV streaming includes Amazon’s Firestick, Roku, Apple TV, Xbox, PlayStation, and the Nintendo Switch.
9. Use of Voice Control as a Remote
There is an increasing trend to eliminate manual navigation and introduce voice control in the interaction with devices and accessing content. This is also a great way to facilitate engagement with digital content for individuals with disabilities or mobility issues.
Using voice control is what sets platforms apart from their competitors, offering an intuitive and unique OTT user experience. How can the integration of voice commands into the interface help OTT platforms? It’s a great way to attract the attention of those seeking convenient and innovative interaction with technology while at the same time making the platform stand out.
The whole process revolves around voice commands and response designs, great content library organization, and search functionality. Easy navigation via voice commands should guide viewers through the discovery, selection, and playback of the content. However, streaming services must ensure the viewer has a smooth interaction with the content library through accurate voice recognition.
10. Interactive Content
With the OTT technology advancements and the presence of more platforms in the market, keeping viewers happy will become challenging. Today’s consumers want to be part of the action and are not satisfied with just watching the content. Interactive content is one of the major OTT trends fostering deeper engagement. Personalized recommendations and gamified elements will keep viewers engaged and coming back for more.
OTT platforms should consider incorporating features like interactive storytelling. Letting viewers choose the direction of the story from multiple plot paths will offer an exciting OTT user experience. Another option is to engage viewers with real-time interaction options. Include Q&A and live polls during live streams to increase interactivity. Some platforms may even choose to offer in-video purchasing of featured products in the content directly from the app.
11. Social Features and Expansion of Binge-Watching Culture
We live in an era when everything is on social media, so why shouldn’t OTT platforms integrate social features to boost engagement and user retention? Introducing social sharing will allow viewers to share their favorite content on social media. Platforms should also allow users to organize watch parties simultaneously with family and friends. They may be apart, but why not allow them to enjoy something they’ve done together for a long time?
Binge-watching isn’t new, but it’s a phenomenon that continues to shape the future of OTT streaming. The binge-watching culture will continue to be strong, with platforms releasing entire seasons of shows at once. This is a way to allow viewers to watch at their own pace.
The capitalization opportunities for OTT platforms are to develop more binge-worthy content and enhance their interfaces to encourage extended viewing sessions.
12. Cloud-Based OTT Solutions
Cloud technology is closely connected to the future of OTT streaming. Platforms adopt cloud-based solutions to reduce costs, enhance scalability, and improve delivery. It’s a convenient way to store and stream vast content libraries without requiring expensive on-premise infrastructure.
Cloud-based OTT solutions also enable seamless cross-device streaming, ensuring users can pick up where they left off across multiple devices. With the advancement of cloud technology, we can expect stronger and more reliable streaming services and better integration of live streaming and on-demand content.
Conclusion: OTT Trends in 2024 and Beyond
When it comes to current OTT trends, the industry is finally getting close to its mature stage. We’re seeing the rise of some exciting new OTT technology advancements, along with the consolidation and smoothing out of others.
Additionally, the streaming technology industry is also facing some new challenges. It’ll be interesting to see how 2024 plays out after unprecedented shifts over the past year.
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