Over the Top platforms have taken a turn to be the most trending aspect of digitalization. With best movies and shows, attractive perks, OTT is undoubtedly the viewers’ choice. A little more than two decades of its existence and Netflix has already become one of the most popular Over The Top platforms worldwide. It was one of the first OTT success stories in the world. Hence, we focus on Netflix in particular amongst all the OTT apps. How did this quick evolution take place? Let’s find out.
THE EVOLUTION OF NETFLIX:
Netflix was founded in 1997 as a video library for 7-days movie rentals with over 900 titles costing 50 cents per movie. It came up with a $16 subscription model in 1999 including rentals without a return date. The company increased the subscription fee gradually but continued to incur losses due to high initial costs of operation until 2006 when it enjoyed over 6 million subscribers after adding recommendations and queues to its sevices via CineMatch algorithm. The business move of focusing on movies watched per user instead of user’s views per movie marked the distinction between Netflix and its competitors and furthered the company towards the path of success. Despite the high monthly subscription fee, Netflix started gathering its audience because it provided a convenient and unique experience. Finally in 2007, Netflix launched its streaming service ‘Watch Now’ and separated the DVD rental ‘Qwikster’ and streaming business soon after in 2011 but lost a considerate amount of followers after receiving backlash due to the double costs. Despite that, Netflix streaming increased its subscription base about 283% to 23 million within four years. The 2013 release.of the show House of Cards on Netflix marked the ultimate takeover by the OTT platform over the whole industry. The show was highly acclaimed and proved extremely beneficial for the company with over $4.3 billion revenue by the end of 2013. With the introduction of user profiles and launch of feature films like Beasts of No Nation, Netflix catered its service to the whole world by the end of 2016 and has been unstoppable ever since then. The adoption of the practice of content production along with licensing also added immensely to its subscriptions and revenue. With shows like Stranger Things and Black Mirror becoming the face of the brand, Netflix’s regional networking also helped in a global outreach despite no major international advertising. With even newer strategies such as Netflix mobile plan amongst others, Netflix is set to further expand its market just like it has done in the past decade.
WHAT DOES THE FUTURE HOLD FOR NETFLIX AND OTHER OTT PLATFORMS?
Since the stakeholders of the OTT platform have been very dynamic with their businesses choices, the future of the same can only be speculated and not definitely predicted. However, here are the changes we think may take place:
• MORE EXCLUSIVITY
OTT platforms are simply taking over the cinema and TV industry. With more and more exclusive movie successes on Netflix, Amazon etc., it is a huge possibility that the leading movie makers may turn to digital movie releases for a better share of revenue.
• GREATER OPPORTUNITIES
The rising trend of high grossing web series and short films on OTT with a major representation of raw talented actors, the industry may open up to newer faces and talent leading to a rise of job opportunities in the acting field.
• AUGMENTED AND VIRTUAL REALITY
It is predictable that leading OTT platforms like Hulu and Amazon would capitalize on the modern technological developments like AR and VR, specifically taking into account the surge of its eminent usage in the gaming industry.
• FLOURISHING MARKET
The OTT market is expected to reach a staggering $158.84 billion revenue by 2024. The industry has already observed more than a 10 time growth in the past 8 years. The future predictions show a growth of the market at an even higher pace. Seeing such levels of growth, the promotion and advertisement traffic has also shifted from television to OTT and experts speculate a complete industry takeover within another decade. Netflix now has 182 million subscribers worldwide and the company also saw quarterly revenue of $5.77 billion versus the $5.76 billion estimated. Amazon Prime Video is next in line and blooms with 150 million subscribers. These numbers are expected to grow exponentially in the coming years.
• GREATER PRICES AND ENGAGEMENT
Netflix, Amazon, Hulu, Hotstar and other OTTs have emphasized on higher customer acquisition thus far. With a fairly large customer base each of the companies streaming apps enjoy, the stakeholders may look for a business expansion in terms of a slight price rise. This should not heavily affect the customer expansion policy due to a greater dependency on these platforms, holistic and satisfactory services, and a lack of a better alternative.
These market statistics, trends and predictions indicate the rise and popularity of OTT platforms and the definite advantage of entering the OTT market. Game App Studio is a leading OTT app development with a great variety and tools and technologies and a skilled team of developers.
- INDUSTRIAL EXPERTISE- We have a half decade long experience in the field of app development with apps over a million downloads. Our developers are well versed with all tools and technologies used for OTT app development like WebRTC and Wowza.
- LATEST TECHNOLOGIES- We are the earliest in the market to adapt the newest tools available in the market for an enhanced experience in app development.
- 24/7 CONSULTANCY- We are the rare developers who provide round the clock consulting to our clients along with flexibility in accommodating client’s requirements at any point of OTT app development.
- CUSTOMER SATISFACTION– With a 100% client retention, we provide our clients the best framework for communication to provide the best end results and successful applications to our customers.
- TIMELY DELIVERY- Game App Studio has a deep understanding of punctuality in the app development business. We promise to successfully deliver the best OTT application before the stipulated deadline.