Mediastream: The Key Ally in the Success of Mercado Play
At present, pay-TV is experiencing a sharp decline, and streaming services are leading content delivery. These types of platforms are called Over The Top or OTT platforms. But what exactly does this mean?
Over The Top Platforms refer to free content transmission services, which go "over" the conventional transmission services providers or operators.
In other words, these platforms can spread content through the internet without having to go through cable operators to broadcast it. To access this content, the user only needs two things: an electronic device and internet access.
There are various types of OTT platforms, but in general, the most used are video (often known as OTT Video Platform ) and music streaming, such as Spotify or Apple Music.
OTT companies have two ways of offering the transmission, the first is via subscription models, and the second is by the inclusion of advertising within their platform. We detail them below:
Subscription model: A payment is made periodically, generally on a monthly basis, to access the service. There is also the option to pay for the service on an annual basis.
Among the best-known OTT Video Platforms using this model, we find Netflix, Disney+, Amazon Prime Video and HBO Max. On the music streaming side, there are Spotify, Apple Music, Google Music, and Tidal.
It is important to emphasize that some of the above, such as Spotify, have a hybrid model: if the user does not pay a subscription, the OTT will work under a model with ads.
The model with ads: We can access the content for free, but we will be required to see advertising interspersed between the content. The positive side is that no registration or use of a bank card is required.
Among the best-known platforms using this model, we find Crunchyroll and Pluto TV.
Thanks to the increase in the connection speed of internet services and better technologies to playback content, streaming platforms have gained a position as the primary source of daily entertainment for people and have been especially powerful during the pandemic.
Neftlix began operations in 1997, with a business model based on DVD rental, but a decade later, it would add VOD (video on demand) to its business, and then forget about DVDs and offer only online content.
In 2009 its subscribers already exceeded 10 million. Two years later, it arrived in South America and the Caribbean, achieving double the number of subscribers in the last quarter of that year: 21 million.
From 2011 to date, its figures have increased exponentially, currently achieving an impressive 203 million subscribers, and even considering the appearance of various competitors along the way.
Per region, Netflix has a more significant number of subscribers in Canada and the United States, adding about 73 million by the end of 2020. It is followed by Europe, the Middle East, and Africa with 66 million, then Latin America with 37 million, and finally 25 million in Asia-Pacific.
The content preferred by people on that platform is divided evenly between series and movies. Film titles such as "Tyler Rake," "Bird Box," "Spenser Confidential" and "6 In The Shadow" are some of the most viewed by their subscribers, while series such as "Bridgerton", "The Witcher", "Lupine "and "La Casa de Papel" are some of the most played on the platform.
Another OTT giant is Disney+, a service launched only a couple of years ago, precisely in November 2019, arriving in Latin America a year later. The Walt Disney platform has grown at a breakneck speed, managing to surpass 94 million subscribers in December 2020.
One of the biggest appeals of Disney+ is that it has the entire Star Wars, Marvel, and Pixar catalog, an irresistible combo for the whole family.
Among its most-watched titles in 2020, we find series such as "The Mandalorian" and "The Simpsons", and films such as "Home Alone" and "Avengers: Endgame".
OTT platforms are here to stay, and more and more people prefer them over traditional media. At Mediastream, we have been deploying streaming platforms for twelve years, managing and distributing the content of some of the largest media in LATAM, offering 24/7 support for quality service, and helping to transmit live events and OTT content successfully
