THE use of internet and smart devices have drastically changed the way content is being distributed and consumed, leading to the rise of over-the-top (OTT) platforms such as on-demand television and film content that suits the requirements of the consumers.
Today, OTT platforms are no longer the industry disruptor it once used to be. Instead, it has become a mainstream part of the consumer entertainment experience.
According to a Nielsen study, Malaysia registered close to 14.1 million OTT users in 2021, representing about 78% of the viewing population aged 15 and above.
A recent research by the Trade Desk also revealed that in Southeast Asia, 180 million consumers collectively stream some eight billion hours of OTT content per month, making OTT one of the fastest growing media channels in the region.
“OTT platforms have empowered consumers by providing a variety of choices for their entertainment needs. Users are no longer limited to traditional mediums such as TV.
“A high level of personalisation allows platforms to cater to specific consumer demand,” said iQiyi country manager (Malaysia, Singapore & Brunei) Dinesh Ratnam.
He attributes the growth of OTT platforms to its ability to be more accessible than ever before and compatible across multiple connected devices – anytime and anywhere.
Personalised content
Fueled by growing consumer demand, OTT platforms have the ability to offer personalised content.
According to Dinesh, content personalisation allows OTT service providers to offer an experience uniquely tailored experience to consumer segments, with content that is relevant to their specific interests and viewing preferences.
iQiyi, in particular, operates on a “freemium” model, offering both subscription and ad-based viewing options. This allows users the freedom to choose between the option of free ad-supported viewing or paying for a better viewing experience, in addition to advanced features including subtitles and superior loading speeds in addition to an enhanced viewing experience.
A boon for advertisers
This ability to personalise ad-supported content has made OTT platforms particularly attractive to advertisers, with the ability to get eyeballs on their products or services on a wider scale, to a targeted and measurable audience, while reducing noise and clutter compared to advertising on other digital platforms.
From an advertiser’s perspective, this offers a “holy grail” or “gold standard” of sorts, enabling them to make their ad spending more effective.
As opposed to traditional media, OTT platforms have the unique ability to effectively target audience segments, based on the type of content they are watching.
Apart from targeting demographics, OTT platforms allow brands to transcend geographies, making it a very useful advertising option for brands who want to increase their presence in multiple markets.
Given its efficiency in targeting consumers, brands are quickly taking heed, with increased spending on OTT platforms.
Meanwhile, PwC Malaysia predicts that the OTT market is expected to grow to US$150 bil by 2022.
It is safe to say that OTT platforms are not only here to stay, but will continue to disrupt the industry, with the potential of forerunners to eventually dominate the space. – Nov 20, 2021
