Why OTT is Killing Cable

OTT services have skyrocketed in popularity over the last several years. For example, a 2019 study found that OTT usage was at 65% for Americans aged 18-34 — and that was before the outbreak of COVID-19 and the resulting lockdowns! It’s no surprise that OTT has overtaken traditional television (including cable TV) as the entertainment medium of choice for the masses.

Let’s examine three reasons in particular why OTT is killing TV.

1. OTT is Available Any Time

In terms of popularity, traditional broadcast TV reigned supreme for several decades. One of the big problems with TV, however, was the fact that viewers were tied down to particular days and time slots if they wanted to watch a specific show. Of course, there’s no way to get around this issue when it comes to live events like sports; but this applied to all programming, including pre-recorded shows that were broadcast later.

In contrast, OTT streaming services allow viewers to watch their favorite shows virtually any time they want. Whether they want to consume content in the morning or evening, during the week or on the weekend, customers have the freedom to engage with OTT channels whenever it’s most convenient for them.

It’s easy to see why OTT has a distinct advantage over cable TV in this area.

2. OTT is Available Across a Wide Range of Devices

OTT content can reach consumers through a wide variety of devices, including smart TVs, connected TVs, smartphones, tablets, and laptops. While some cable networks are struggling to keep pace with OTT service providers, the fact remains that if you have access to the Internet, you can almost certainly stream content to your device, no matter where you are or what you’re using.

What this means for consumers is unparalleled freedom to watch their favorite programs not only whenever, but also wherever they choose. 9 to 5 workers can view or listen to content on their daily commute to work; students can consume content during breaks at school; and vacationers can enjoy their preferred content while staying at their hotel. This ubiquitousness of OTT content makes it stand head and shoulders above any traditional TV programming.

3. OTT Options Offer Unsurpassed Flexibility

In years past, cable networks would force customers to pay for not just the premium channel they wanted, but also a “bundle” of other channels that the customers weren’t really interested in. Not only did these channel packages include a lot of superfluous programming (at least as far as the customers were concerned) — they were also quite expensive.

Nowadays, the power paradigm has shifted. OTT service providers empower consumers to either:

• Pay a flat subscription fee for access to all of their desired content (plus all the other content available on the platform)
• Pay only for the content they want (e.g., rent or buy specific movies)
• Consume the content for free, as long as they’re willing to sit through ads

The point is, OTT platforms are giving customers unsurpassed flexibility in terms of choosing the options that meet their budget and preferences. OTT service providers are also reducing the amount of “friction” customers feel when signing up for a new service — in other words, everything is laid out for the customer in a simple, straightforward manner, without any hidden fees or contractual loopholes. Again, it’s easy to see why OTT has an advantage over the old cable TV business model.

In summary, OTT is the new “champion” of the entertainment world — and it’s not going anywhere, any time soon.

Intraway has been a global leader in telecommunications solutions for 20 years. Contact us for more information on how our no-code provisioning automation solutions can reduce operational costs and empower your network with cutting-edge functionalities.