OTT (Over-the-Top)

 What is Over-the-Top?

Over-The-Top, or OTT, refers to the delivery of video content directly over the internet, bypassing traditional distribution channels like cable, satellite, or broadcast television. OTT streaming services are accessible through a wide range of internet-connected devices including smart TVs, mobile phones, tablets, desktop computers, gaming consoles, and dedicated streaming devices such as Roku, Amazon Fire TV, and Apple TV.

OTT covers a broad spectrum of content delivery models, including:

• SVOD (Subscription Video On Demand) – services like Netflix, Hulu, and Disney+ where users pay a recurring fee to access content.
• AVOD (Advertising-based Video On Demand) – free-to-access content monetized through ads, as seen with platforms like Tubi or Pluto TV.
• FAST (Free Ad-Supported Streaming TV) – linear, channel-like streaming experiences that mirror traditional TV formats, available without subscriptions.
• TVOD (Transactional Video On Demand) – also known as pay-per-view, where users pay individually for specific pieces of content, such as a movie rental.

OTT content spans virtually every genre and format imaginable—on-demand or scheduled movies, TV shows, live sports, news broadcasts, and exclusive original programming.

How does OTT transform content streaming?

OTT platforms have radically disrupted the traditional television industry by placing control in the hands of the viewer. Users can now access content whenever and wherever they want, often across multiple devices and with flexible pricing models. For content distributors and advertisers, OTT represents a scalable, data-driven environment for reaching audiences with greater precision.

OTT also enables a more personalized content experience, often powered by recommendation engines that tailor programming to individual viewer preferences. The business implications are substantial: streamers can use first-party data to inform ad targeting, reduce churn, and increase lifetime user value.

What is the difference between OTT and CTV?

While the terms OTT and CTV (Connected TV) are frequently used interchangeably, they refer to distinct but related concepts.

OTT describes the method of content delivery—streaming video over the internet to any connected device, whether it’s a mobile phone, tablet, laptop, or TV.

CTV, on the other hand, refers specifically to televisions that can stream OTT content, either because they are smart TVs or are connected to the internet via external devices like a Roku, Chromecast, PlayStation, or Xbox.

From an advertising perspective, CTV is particularly valuable. The large-screen format of connected TVs drives more immersive viewing experiences and higher user engagement, which translates into better ad performance. As a result, CTV inventory often commands higher CPMs, making it a high-value monetization channel for streamers, publishers, and advertisers alike.

Why does OTT matter in the business of streaming?

OTT is central to the future of digital media. It enables content providers to expand their reach globally, leverage targeted advertising, and create monetization models tailored to diverse audience segments. For advertisers, it unlocks premium, addressable inventory that delivers measurable results. For platform operators, it offers deep insights into viewer behavior and monetization effectiveness.

As consumer behavior continues to shift away from traditional TV, businesses that harness the flexibility and scalability of OTT are best positioned to drive growth, improve audience engagement, and maximize revenue opportunities.