Over the last decade, OTT platforms have been a significant driver in changing how digital media is consumed. Netflix, Amazon Prime, and Hulu are now common words we use in our daily conversations. Moreover, there is no stopping the population growth across the globe, which has led to the expansion of mobile users.
Generally speaking, because of the continuous growth of smart devices, users want various entertainment uses such as live streaming, instant messaging, audio, and video. As bright as the OTT seems, problems such as fragmented communication, poor quality, and speed, isolated content, despised advertisements, expensive OTT monetization system, etc., are increasingly growing.
But as software technologies advance, we’re also witnessing better variants of the internet, thanks to technological advancements in cellular technology. Make way for 5G!
As the next-in-line of the current 4G, 5G is expected to deliver an unparalleled experience of the wireless connectivity evolution as it can connect even objects to people. Nevertheless, the next frontier for the OTT industry is providing whistle-stop speed and less latency streaming, which OTT players can achieve only with the help of 5G.
5G and OTT Industry
In simple terms, 5G is the successor of 4G. So, users will have access to fast internet speed (up to ten times faster than current networks), super-low latency speed, and excellent network reliability. On the other hand, around 80% of American homes have at least one connected TV device, consuming about 4 billion hours per week of content on OTT channels. And as these figures are expected to grow, 5G can open up new opportunities for the OTT industry.
5G can Help Reduce the Difference between Broadcast and Broadband
Using cloud computing infrastructures, 5G can ensure that the processing of the OTT services is closer to the users, empowering the lowest latency and real-time processing. OTT players can process the streaming on 5G’s local “macro” towers, eliminating distant servers or user devices’ computing power.
This deadly combo of 5G and cloud computing can deliver real-time content and enable users to view live streaming through OTT platforms. This way, users will not have to juggle between OTT and TV broadcasting when watching live sports, as 5G can blur the differences between these two and give more flexibility to users.
Amazon Web Services plans to host live streaming of NFL games with Verizon Connect’s 5G network solutions. You can now view Thursday Night NFL games, and Premier League soccer matches live on Amazon Prime.
Advertisers can Deliver Targeted Advertisements with 5G
For advertisers, 5G can help them augment the impact of their advertisements as 5G will contract the ad latency to about a millisecond. As a user’s reaction time is, on average, between 150 to 300 milliseconds, advertisers can eliminate the buffering issue and promote streaming data almost in real-time.
Further, you can watch high-quality videos on the go as advertisers will spend on delivering OTT ad campaigns. With the advent of 5G, we will also have access to mobile edge computing technology that enables storing content locally, closer to the 5G user. Eventually, content producers can create targeted advertisements as well as save costs on storing data.
5G will Augment Augmented and Virtual Reality Applications
5G’s greater network reliability can help content producers to run multiple high-demand applications simultaneously. This way, it can support streaming augmented and virtual reality applications on OTT platforms. Indeed, watching AR and VR-related movies in theaters is a thing of the past. What consumers demand today is enjoying the same cineplex experience in the comfort of their homes–which is possible with 5G.
In fact, NBA has collaborated with Verizon to provide VR streaming capability into the NBA League Pass streaming platform.
Telco Companies can Partner with OTT Players
Telco companies can engage in a strong partnership with OTT players by providing them with a 5G network and getting a share of OTT’s growth. OTT players and telco companies can expand their user base in remote areas where 4G is still inaccessible. As 5G ensures decreased storing costs, telco companies can help OTT players stream high-quality content and simultaneously cut costs. It’s a win-win for both OTT players and telco companies.
5G will Change Digital Media Landscape
With extended video delivery capabilities, speed, and reliability of 5G, OTT players can quickly meet consumer expectations. As OTT provides excellent value to users, recurring billing management could be challenging. Magnaquest Sure can help OTT players to leverage content and media with robust subscription and billing solutions.
Sure assists OTT players to up-sell and bundle products with progressive pricing and integrating solutions with telecom players into a scalable, low-cost, and efficient OTT service setting. This way, they can boost the subscriber base, increase retention and deliver buffer-free content.