Distribution of Digital Media Platforms

OTT

• Stands for “Over The Top”• Over The Top content delivers media over the internet

without the use of a multi-system operator.• It is not provided directly by your ISP (Internet Service

Provider)

SVOD

• Stands for “Subscription Video On Demand”• The viewer pays a subscription fee per month• Top Players: Netflix, Amazon, Hulu• Additional Players: PureFlix, JellyTelly

Strengths

• Very attractive to new subscribers• Pay a lower amount, for a wide variety of unlimited

videos and tv shows offered• SVOD trend and market is growing and consumers are

turning more to it• Easier to maintain customers and customer

relationship• You have a much better idea of the revenue stream

for a year’s term• Competing against TVOD

Weaknesses

• With the amount of subscribers that sign up due to the reasonable fee, makes it more difficult to continue growth for a long period• Worry for down the road will run out of new subscribers• Don’t provide new content as quickly as TVOD players

do.

AOD

• Stands for “Advertising On Demand”• Revenue stream comes from the use of displaying Ads.• Top Players: Youtube, Facebook

AOD Players

Strengths

• Since TV advertising is so expensive, this provides consumers to advertise through video online at a much better expense.• With online video improving, and more users watching

videos online is helping increase more target audiences to advertise to.

Weaknesses

• There is a lot of fraud throughout the internet and in advertisements.• With the internet growing, unfortunately it is helping

fraud increase more as well.• Bigger brands are starting to lose trust due to the

amount of fraud making it difficult for them to build trust with their customers.

User-generated Content

• These platforms allow for users to upload their own content/videos to the platforms• Allows users to share content/media with the rest of the

world• Top Platforms: youtube, Facebook, Twitter, Twitch, Vimeo• Additional Platforms: Dailymotion, Periscope

Strengths

• Is helping increase the rate of viewers watching media online and sharing media online• This has been a huge driving force for watching online video• Helping other media platforms get recognized since it is

raising user involvement in online video• Has helped raise user interest in watching videos online.• With the raise of user, it is adding more target audience

watching online videos for businesses to go after.•  

Weaknesses

• Combating with TV and assisting in TV ratings going down• It is very difficult to make money with these• It can also be very difficult for a business/company to

advertise and stand out on these platforms• There is also fraud and copyright these platforms face

and have to stay on top of.

TVOD

• Stands for “Transactional Video On Demand”• Offers the choice for the user to rent or purchase• These platforms are much more single purchase based,

and not subscription based• Top Players: iTunes, Google Play, Amazon Instant Video• Additional: Cable/Satellite providers

Strengths

• Transactions typically happen pretty quick, typically faster than subscription based platforms.• Allows for more new content which excites users • Also, users also are able to see new content sooner than

other platforms• It is a one-time purchase

Weaknesses

• TVOD isn’t growing as fast as it should• The SVOD is a huge competitor to TVOD• It’s a one time purchase, and the users get only one

video• Users are attracted to more variety with the purchase• Consumers want to get the most as possible, while

paying the least possible• When the current movies get older, the TVOD players

find it difficult to sell them due to the SVOD players.• They have to constantly keep their selections updated

as current as possible• It can be difficult to maintain consistent customers

Linear OTT (Over The Top)

• Online streaming through broadcast channels and networks• Distributes through the virtual MVPDs (Virtual Multi-channel Video

Distribution)• Allows For multiple channels and the viewer to interactively choose what he/she

wants to watch• Allows access to original content providing the first air date• Basically cable tv through online streaming• Very similar to MSO (Multiple Systems Operator)

• Operators of multiple cable tv systems• The revenue model is a subscription based model similar to cable tv• Top Players: Sling TV, Playstation Vue, Film On X• Additional: Yip TV• Possible entrants: Apple TV, Comcast• Sling TV launched with 16 channels at $20 per month

Linear OTT

Strengths

• Allows users to get new content/media before any other players• Viewer gets to view the new content on the first air date

and through the original content.• Viewer pays subscription and is allowed a wide variety

of different channels, movies, and shows to watch.• Has no constraints of directly owning the network

infrastructure for content delivery. Bascially don’t have to go through any routers, certain security applications, it is strictly through the internet.

Weaknesses

• Licensing could make it very difficult, and make it difficult for these companies to make money• Rumor that ESPN is charging Sling $6 per subscriber

• Does not allow viewers to record• Have a lot of competition• Subscribers have a very few amount of options

Components of an OTT Platform

• API (Application Program Interface)- specifies how software components should interact • Is the Heart of the SVOD platform for Netflix• Is the center piece in connecting all the other servers,

platforms and systems to the clients’ connected device• Basically the middleman between the app and a

programmer, accepts requests and returns the data. – Operator

API

More Components

• DRM (Digital Rights Management) to prevent unauthorized redistribution of digital media and restrict the ways consumers can copy content they've purchased.• Concentrates on control over production and distribution of media

• DRM Coverage• This is very important and mandatory• Choosing the right technical partner or recruitment is very key here

• SDK (Software developers kit)• a programming package that enables a programmer to

develop applications for a specific platform. • Includes API’s to help with the platform and application

Deployment Model

• Cloud- focused more on computing infrastructure and services that you can rent. • Very virtual based, the infrastructure makes a virtual server for you.

Meant more for software developers, for example a virtual computer. • GPU is used to help accelerate scientific, engineering, and graphics

applications.• GPU instances run as a Hardware Virtual Machine (HVM)• EC2 (Elastic Computing Cloud) used mostly through amazon acting

as a central part of its cloud-computing platform.• Concern is that very few providers are available providing the speed,

security, and flexibility needed.

Deployment Model

• SaaS (Software as a Service) • a way of delivering applications over the internet as a

service, instead of installing or downloading. • It offloads the engineering charge and the scalability

issue on the service provider. • Concern is that it is not instant scalability, and the

scalability is in someone else’s hands

Deployment Model

• On-premises/Self-hosting • Having your website/application fully under your control.

• You transcode and DRMize contents with your own

processing. • This allows you to know and understand how it performs

and are able to adjust workflows more easily. • The concern is with scalability.

ABR

• Adaptive Bitrate streaming• For optimal adaptive streaming for the maximum quality

possible for the device• Helps connect all the video outputs to stream for each

device.• Each different device requires its own service to receive

the streaming.

Content Chain Flexibility

• CDN’s (Content Delivery Network)- large distributed system of servers deployed in multiple data centers across the Internet.• A CDN helps shorten the distance between the end user

and the origin server.• Helps with handling the load of large audiences from

different locations and with different devices.• Having Multi-CDN support will help distribute video

streaming to a variety of end-users through your platform.

CDN

Management

• Time to Market• The typical time it takes to get deployed is 6 months for the first

device(s).• Subscribers Management

• Manage your subscribers separate from your OTT platform.

Financials- Cost Structure for Netflix

Cost Breakdown for Netflix

Revenue Model for Netflix

Revenue Breakdown for Netflix OTT Platform

Sources

• https://www.techopedia.com/definition/16955/network-infrastructure• https://

www.infosys.com/industries/communication-services/white-papers/Documents/virtual-multichannel-video-programming.pdf

• http://www.fierceonlinevideo.com/special-reports/where-netflix-youtube-and-hbo-now-fit-ott-industry

• https://www.incapsula.com/cdn-guide/what-is-cdn-how-it-works.html• https://support.rackspace.com/how-to/what-is-a-cdn/• http://blog.eltrovemo.com/600/how-to-build-a-netflix-like-multiscreen-ott-service-part-1/• http://www.pbs.org/pov/filmmakers/resources/diy-digital-distribution-platforms.php• http://revenuesandprofits.com/how-netflix-makes-money/• http://nordicapis.com/api-platform-defined-api-provider-is-a-platform/• https://www.incapsula.com/cdn-guide/what-is-cdn-how-it-works.html