'Impact of OTT on Video Production Around the World'

Arthofer, F., Hardarson, Á., Kon, M., Lee, E. and Rose, J. (2016). The Future of Television: The Impact of OTT on Video Production Around the World. [online] https://www.bcg.com. Available at: https://www.bcg.com/en-gb/publications/2016/media-entertainment-technology-digital-future-television-impact-ott-video-production.aspx [Accessed 13 Oct. 2019].

‌(Arthofer et al., 2016)

Keywords:

OTT: Over the top video Platforms- Technolgy that replicates traditional tv using digital technologies  

Digital Revolution

Traditional Networks: Broadcasted and pay-Tv

Video Distributors: Cable, Telco, Satellite

Online streaming offers more to consumers; more content and more choice ‌(Arthofer et al., 2016).

I would like to research on facebook live.

QUOTES:

A digital revolution is putting more than half a trillion dollars into play. Television and filmed entertainment, especially traditional broadcast TV, is being transformed by the big and fast-growing inroads of internet and over-the-top (OTT) video platforms.

OTT television—representing some $25 billion in annual revenues worldwide and generated mostly by a handful of big US-based global players, including Netflix, Amazon, and Google’s YouTube—is at the center of this revolution. Its impact on traditional networks (broadcast and pay-TV) and video distributors (cable, telco, and satellite) has been extensively examined. 

OTT encompasses the distribution of video content “over the top” of traditional distribution technologies. At the most basic level, OTT is simply a technology alternative that allows for the replication of the traditional home entertainment “stack” of consumer value propositions in a digital context. 

In technology terms, OTT is the delivery of video content through fixed or mobile broadband internet connections instead of over the broadcast TV spectrum or dedicated cable, fiber, or satellite networks. In many ways, OTT is neither more nor less than a replication of the traditional set of consumer video services.

Furthermore, although OTT mirrors the traditional video stack, digital technologies enable many distinctive characteristics and features that are not possible with over-the-air, cable, or satellite distribution.

These include the sheer breadth of content available, flexibility of time and place for viewing content, and the flexibility of consumer offerings and price points that companies can offer and from which consumers can choose.

Finally, OTT and traditional TV are further differentiated by the content creators that participate in the space. By eliminating constraints on content distribution and space, OTT has introduced new types of content creators to the market.

• Traditional professionals produce expensive, high-quality content and are characterized by a well-defined and well-funded ecosystem of studios, production houses, and professional talent (including actors and directors). Before OTT, this group constituted the TV content production ecosystem.
• Professional amateurs (pro-ams) do not have access to large production infrastructure, but they have regular production schedules and profit motives, and they generate revenues. They are focused primarily on producing content for OTT, and many began as amateurs on YouTube or other social media platforms (for example, The Young Turks).
• Amateurs make content sporadically, but they are frequent and prolific contributors to the content community. Their output forms the backbone of consumption on social media such as Facebook, Twitter, and Snapchat. Amateurs are especially good at capturing the viewing public’s imagination: many amateur videos have “gone viral” and been seen by millions. This is a completely new but hugely important part of the content production ecosystem.

In the past, the online value chain has included three primary video-on-demand (VOD) business models, known as AVOD (advertising-based VOD), TVOD (transaction-based VOD), and SVOD (subscription-based VOD). As the VOD abbreviation indicates, these services are not tied to a linear television schedule in which the TV company sets the time of viewing. However, there are an emerging number of OTT players that now offer livecontent but are not tethered to traditional, facilities-based distribution infrastructure such as cable or telco.

For example, Facebook Live, which is supported by advertising revenues, streams video content.