Back to Blogs
Technology trends

What is OTT? And why OTT box makes people gradually cut the cord.

For the last couple of years, we have witnessed more and more people cancel cable services and move towards online-connected content via electronic devices such as smartphones, tablets, laptops, smart TV, well as their devices can access OTT webs or OTT apps, platforms which is pre-installed or downloaded from the storefront.


OTT stands for “Over-The-Top”, which is named to refer to content delivered over the traditional cable box, but through the internet network.

Simply, OTT is one way to approach content that people pay for an internet provider like Xfinity, Verizon, AT&T,.. to connect the OTT media services like Netflix, Youtube, Spotify, Skype,...


Life is getting busier, so people don’t have too much time waiting and watching their favorite shows, programs,... at a particular time slot. Meanwhile, with a stable internet connection, they can watch all of them at any time frame and replay unlimited times. Moreover, if viewers' devices are portable, they can also connect to the content anywhere as long as there is an available internet connection. 

OTT contents become increasingly attractive and quality. You may realize that most of the critically acclaimed content these days is nearly through OTT boxes. For instance, in VOD platforms (Video On Demands), Netflix with their famous original shows like Squid Games, Stranger Things, Money Heist,... Disney + with their massive amount of Marvel movies and Amazon Prime is also in the race to attract more customers by expanding their shows library and adding more original series.

Another popular reason why there is a huge switch from cable services to OTT services is their low cost with high-value content. With only $9.99 per month, you can enjoy the enormous music library on Spotify. You no longer buy CDs to hear only your ear-matching songs or favorite singers. Additionally, some OTT platforms apply machine learning technology in their system, which helps the users take less time finding their ideal content.
Read more: Machine Learning


Besides the media and entertainment field, other industries gradually change their streaming into OTT platforms to enlarge their customers as well as increase their income.

For example, in education, while online courses and teaching marketplaces have existed for a long, but due to the COVID-19 pandemic, a large number of learners adapt to distance learning programs to cope with the impact and enhancement of this disease outbreak.

Also in the lock-down period, health and fitness are the most-followed trends. In the meantime, there are no more gyms or fitness studios open. Looking for fitness tutorials and guides, people have to access online classes or personal trainers through OTT platforms. According to an issue report from Statista, online exercise videos have gained  more views in the US during the pandemic

We can’t deny that after this social-distance period, collaboration software such as Google Meeting, Zoom, Skype,.. plays a crucial role. From online school classes to remote working models in every business, this OTT-based software helps us contact and work together from far distances. As this hard time goes by, these real-time chat, video/audio conferencing,.. are still an indispensable part of each business and organization. Because people get used to this approach, even someone prefers to work or have a conference online due to its flexibility. And this opens a new willing era for the OTT communications industry to develop and grow better.



OTT platforms are a newborn and profitable land to start your business. Demand for content is always at a high time for the OTT industry to bloom and grow. By 2026, OTT media revenue is expected to reach over 210 billion  U.S dollars, more than double the 106 billion generated in 2020 [ Source: Statista ]
However, the OTT platform business is not an easy road to start. Many OTT giants today such as Netflix, Disney+, or other SVOD (Subscription Video On Demand) players used to get failures and challenges. Besides the intense competition about content production in this industry, there are lots of challenges that an OTT business has to deal with, especially in technology:

The quality of the transmission line is essential. No one wants their chilling time interrupted by an accidental error. So, they need a content delivery network to help all transmission needs and digital content are delivered smoothly. Also, handle a large number of users at the same time and deliver high-quality content  to them at any time


The more your business and content attraction grows, the more unauthorized copying happens to your system. To deal with this, digital rights management is inevitable. It will help you to protect the copy video rights, uploaded content as well as prevent other security threats.

(Adobe Stock)

On these platforms, we don’t know what device your customer is using, they may use a laptop, smart TV, or even a game console. Each device requires a specific source format to display and give users the best experience. Therefore, an encoding and transcoding technology, which helps convert from uploaded raw content files to required file format without changing quality compatible data


Those are some of the typical technology challenges that an OTT platform mostly faces. But thanks to technology development, these challenges will be less difficult for an OTT business to solve. Thus, you have more time to concentrate on producing your unique content and develop your business.

If you are looking for a service, which can develop your ideal platform with all that magician technologies, ITC Group, a technology company that can support you with suitable IT strategy, software consulting, and innovative technology solutions for a stable and efficient OTT platform. Please contact us and let our team share your burden or make your dream OTT platform come true.

Back to Blogs
Technology trends

Related articles

1 mins readTechnology trends
1 mins readTechnology trends
1 mins readTechnology trends
1 mins readTechnology trends
1 mins readTechnology trends
1 mins readTechnology trends