COVID-19 has transformed the world. A lot of changes have taken place in the way people consume content on a day-to-day basis.
Consumer’s focus has shifted from the usual content sources to the world of OTT in a massive way. While it introduced them to the worldwide content it also gave the OTT companies an understanding of how consumers want to consume the content. Companies are trying to make the content more relevant and personalized. OTT market which was valued at USD 145.492 Billion in 2020 is expected to reach USD 251.879 Billion by 2025, suggesting a CAGR of 10.0% from 2021 to 2025.
India is the world’s fastest-growing OTT market and is expected to emerge as the world’s sixth-largest by 2024. The Indian market is expected to grow at a CAGR of 28.6% over the next four years to touch revenues of USD 2.9 billion.
Today OTT is seeing a lot of changes in terms of new technology and trends. One of the key drivers of the OTT industry is 5G. It is still an infant. However, it will be the key catalyst in shaping customer experience and scale of OTT growth. According to a study done by PWC, 45% of the world will be covered by 5G, connecting more than 1.7 Billion devices by 2025. Thus, the OTT companies need to scale their system to reap this benefit.
The last decade has been about the expansion of 4G. 4G was about speed, 5G will be about boosting user experience, allowing for consistent communication, and a more cost-effective transfer of data with a bit or no lag.
5G & VR/AR
Profit prospects introduced by 5G go beyond wireless data and communications, it caters to markets such as entertainment, music, gaming, OTT media, cloud gaming, mobile VR/AR/MR and so on.
OTT platforms have been effective in getting users on the platform. However, the next challenge would be to retain them and make sure that the inclination to pay for content remains high. OTT firms are also looking to make their content viewable in different formats like mobile VR/AR/MR. It is exciting as far as content transformation is considered.
User’s enthusiasm for VR and AR uses for content streaming is on the increase, with many excited about the VR entertainment options and AR in movies and web series powered by 5G. Quality of content, personalization of content and standard of video streaming backed by new pricing models will be the main influencing criteria for OTT platform selection.
OTT industry is growing. Soon it will move beyond regular devices like Smart TV, laptop and mobile. Consumers will see new gadgets emerging into this space. Virtual Reality as a channel is slowly starting to enter the OTT space and potentially create new ways to engage viewers and spread content with better feedback.
Virtual Reality (VR) and Augmented Reality (AR) applications for content streaming are constrained by the processing power of 4G which results in a faulty and sluggish loading experience. With 5G networks, users will be able to have smooth experiences with their favourite content.
5G networks have the potential to bring faster speeds and a more consistent connection, users will no longer have to deal with the common disappointments of slow-moving load times and midway stops. The thrill around 5G for users is more on mobile as viewers are excited about the possibility to view UHD video (4K and 8K) on mobile devices powered by 5G networks.
5G & Cloud Computing Infrastructure
5G will play an important role in the cloud infrastructure space. 5G will turn out to be crucial in laying out the right kind of cloud infrastructure that ensures there is no delay in delivering high-quality bandwidth-intensive content to viewers. Cloud-based products and services can become much faster, efficient and customers can expect smoother transfers which are lacking in today’s 4G connectivity.
Cloud computing enterprises can offer enhanced features and multiple options to mobile users. Hotspots can become faster which will allow remote access to cloud services, even where internet connectivity is lacking. These could be possible because of larger computing and machine-to-machine communication provided by 5G.
Focus on Single Platform for Media and Entertainment need
The focus of the consumer is also shifting towards a single platform that can fulfil a wide range of entertainment desires. It will also allow OTT companies to integrate or expand their platform with other entertainment options like sports, games, etc. Live sports are usually seen as a stronghold of TV broadcasters. However, 5G will enable OTT platforms to draw in more users and get a larger portion of the pie. VR can provide a stadium-like atmosphere; this will elevate the overall user experience of consuming live sports content.
High latency services can be a major deterrent specifically for the use of new-age devices like VR Headsets and can end up substantially hampering a user’s gaming experience. Constant latencies between action and response time can result in a bad experience for users. However, 5G is primed to address these challenges due to the marginal latencies it brings to the table and will likely be the choice of many going forward. Hence having a gaming option for the OTT players could be another game-changing opportunity.
Covid-19 has shown how digital technology has helped consumers during the entire fightback. It is the best time to enter and grow into the digital technology and services space to build robust products and services and be prepared before 5G comes into full force. It will not be wrong to say that 5G promises to take OTT to new heights.
is an Associate Director in Media and Entertainment Domain of Product Engineering Services at Happiest Minds Technologies Limited. He has 14+ years of extensive experience in digital transformation and Product Engineering. Shantanu is passionate about Product Management, New technologies and GTM strategies.
