[ the type and description of OTT Service ]
OTT services refer to video streaming services that are delivered over the internet, bypassing traditional TV providers such as cable or satellite. The most common types of OTT services include Subscription Video on Demand (SVOD) and Ad-Supported Video on Demand (AVOD). SVOD services offer subscribers access to a library of content for a monthly or annual fee, and include popular services such as Netflix, Amazon Prime Video, and Hulu. On the other hand, AVOD services offer content for free, but require viewers to watch advertisements. Examples of AVOD services include YouTube and Crackle, which typically offer a wider range of content but with more limited selections than SVOD services. Transactional Video on Demand (TVOD) services provide customers with the option to rent or purchase individual movies or TV episodes. Popular examples of such services include Google Play and iTunes. While TVOD services offer greater flexibility compared to subscription-based services like SVOD or AVOD, they may end up being more expensive in the long run. Live streaming services, on the other hand, offer live access to TV channels, sports events, and news broadcasts. Services like DirecTV Now and Sling TV usually feature a mix of both live and on-demand content. Finally, some OTT services like YouTube TV and PlayStation Vue offer a hybrid model, including live and on-demand content and additional features such as DVR capabilities. In general, OTT services provide viewers with increased flexibility and options when it comes to how they consume media. This is due to the fact that these services allow users to access content at any time, from any location, and on any internet-connected device. As a result, the demand for OTT services has grown significantly in recent years, leading many people to abandon traditional cable and satellite TV providers.
[ Well-known companies in the OTT Space ]
Numerous companies provide OTT services, and among them, some of the most renowned ones are mentioned below: Netflix: This streaming service is based on a subscription model and presents a diverse array of documentaries, TV shows, movies, and original content. It operates in more than 190 countries and has a subscriber base of over 200 million people globally. Amazon Prime Video: This subscription-based streaming service is inclusive of Amazon Prime membership and includes a selection of original content, TV shows, movies, as well as additional channels like Showtime and HBO. Hulu is a streaming service that requires a paid subscription and provides access to both current and classic TV shows, movies, and original content. The service also includes over 65 channels for live TV viewing. Disney+ is another subscription-based streaming service that is available in more than 50 countries, offering a range of content from Disney, Pixar, Marvel, Star Wars, and National Geographic. It currently has over 116 million subscribers. YouTube TV is a subscription-based streaming service only available in the United States that provides access to over 85 live TV channels and a selection of on-demand content. It comes with unlimited cloud DVR storage. HBO Max and Apple TV+ are two examples of subscription-based streaming services. While HBO Max offers a range of content from other networks, TV shows, movies, and HBO content, Apple TV+ solely offers original content. HBO Max is accessible only in the United States and provides ad-free streaming, whereas Apple TV+ is available in over 100 countries and comes with an Apple Music student subscription. There are several other companies that offer OTT services, each with varying features, pricing models, and content libraries, so it's essential to compare and select the one that best matches your requirements.
[ General information on the operating profit ratio of the major companies in the OTT space ]
In 2020, Netflix saw an increase in its operating profit margin from 13.1% to 18.3%, but the company anticipates a decrease in the future due to increased investment in content. Disney+ does not disclose operating profit margins for its streaming service, but its direct-to-consumer division, which includes Disney+, had an operating loss of $2.8 billion in 2020, an improvement from $3.7 billion in 2019. Amazon Prime Video's operating profit margins are not separately reported, but the company's overall operating margin was 5.9% in 2020. As Hulu is owned by Disney, its financials are included in the parent company's overall financial statements. HBO Max is owned by WarnerMedia, which in turn is owned by AT&T, and the latter reported an operating profit margin of 15.8% in 2020.