How OTT Streaming Will Change in 2023: Top Trends and Predictions

OTT streaming is one of the fastest-growing segments of the entertainment industry, as more and more viewers are opting for online video services over traditional cable or satellite TV. OTT stands for, which means delivering video content directly to the viewers via the internet, without the need for intermediaries or distributors. Some of the popular OTT platforms include Netflix, Hulu, Amazon Prime Video, Disney+, and HBO, among many others.

The OTT industry is expected to be worth $1.039 trillion by 2027, which is a significant increase from $121.61 billion in 2019. The growth will continue as more OTT platforms enter the market and more viewers continue to “cut the cord” on cable. In this blog post, we will look at some of the top OTT streaming trends to watch out for in 2023, and how they will shape the future of online video consumption.

Immersive and interactive streaming

The next step in video consumption will be immersive streaming. Interactive videos have already entered the market, and users love to feel like they are participating with the content they are viewing. For example, Netflix’s Black Mirror: Bandersnatch allowed viewers to choose their own adventure and influence the outcome of the story. Similarly, Amazon Prime Video’s The Grand Tour: A Massive Hunt enabled viewers to interact with the hosts and explore different locations.

Immersive streaming will take this concept further by using technologies like virtual reality (VR), augmented reality (AR), and 360-degree video to create more realistic and engaging experiences for the viewers. For example, VR headsets can transport viewers to different worlds and scenarios, while AR glasses can overlay digital elements in the real world. 360-degree video can provide a panoramic view of the surroundings and allow viewers to look around as they, please.

These technologies will not only enhance the entertainment value of OTT streaming, but also create new opportunities for education, training, tourism, gaming, and social interaction.

Streaming on smart TVs and CTVs

One of the major OTT streaming trends is the rise of smart TVs and connected TVs (CTVs). Smart TVs are TVs that have built-in internet connectivity and can access OTT platforms directly. CTVs are TVs that are connected to the internet via external devices like Roku, Chromecast, Apple TV, or gaming consoles. Both types of TVs enable viewers to watch OTT content on larger screens and with better sound quality than mobile devices or laptops.

According to eMarketer, smart TV penetration in the US reached 45.8% in 2020, while CTV penetration reached 40%. These numbers are expected to grow further in the coming years, as more viewers cut the cable cord and switch to OTT streaming. Moreover, OTT platforms are investing more in developing apps and interfaces for smart TVs and CTVs, as well as producing original content that is optimized for these devices.

UX is more important than ever

As more OTT platforms enter the market, user experience (UX) becomes more important than ever. UX refers to how users interact with a product or service, and how they feel about it. UX encompasses aspects like design, functionality, usability, accessibility, personalization, and feedback.

OTT platforms need to provide a seamless and satisfying UX to attract and retain users in a competitive landscape. This means offering features like:

•  Easy navigation and search

•  Fast loading and buffering

•  High-quality video and audio

•  Subtitles and captions

•  Recommendations and suggestions

•  Ratings and reviews

•  Offline viewing

•  Multiple profiles and devices

•  Parental controls

OTT platforms also need to collect and analyze user data to understand their preferences, behaviors, and feedback, and use this information to improve their UX accordingly.

Advertisements are a major source of revenue

Over half of OTT revenue comes from advertisements, which shows that ads are a major source of income for OTT platforms. Ads can be delivered in various formats, such as pre-roll, mid-roll, post-roll, banner, overlay, or native. Ads can also be targeted based on user data, such as demographics, location, interests, or viewing history.

However, ads can also be annoying and intrusive for users who want to enjoy uninterrupted viewing. Therefore, OTT platforms need to balance their ad revenue with their user satisfaction. This means offering options like:

•  Ad-free subscriptions or tiers

•  Skip or mute buttons

•  Frequency capping or limiting

•  Interactive or engaging ads

•  Relevant or personalized ads

OTT platforms also need to comply with privacy regulations and ethical standards when collecting and using user data for ad purposes.

Netflix is still the leader, but faces more competition

Netflix is still the undisputed leader of the OTT industry, with nearly a third of OTT subscriptions in the US going to Netflix. Netflix has a huge library of content, including original and exclusive titles, as well as a loyal and global user base. Netflix also has a strong brand image and reputation, as well as a user-friendly and innovative UX.

However, Netflix also faces more competition from other OTT platforms, especially from Disney+, which launched in 2019 and has quickly gained popularity and market share. Disney+ has a competitive edge over Netflix in terms of content, as it owns some of the most popular and valuable franchises, such as Marvel, Star Wars, Pixar, and National Geographic. Disney+ also has a lower subscription price than Netflix, as well as a bundle offer with Hulu and ESPN+.

Other OTT platforms that are challenging Netflix include Amazon Prime Video, HBO Max, Peacock, Apple TV+, Paramount+, Discovery+, and more. These platforms are also investing heavily in producing original and exclusive content, as well as acquiring or licensing existing content from other sources. Moreover, these platforms are expanding their reach and availability to different regions and markets, as well as offering different pricing and packaging options to suit different user segments.

Conclusion: OTT Trends in 2022 and Beyond

OTT streaming is a dynamic and evolving industry that offers many opportunities and challenges for both OTT platforms and users. The OTT trends we discussed in this blog post are some of the most important ones to watch out for in 2022 and beyond. However, there may be more developments and surprises in the future, as technology, consumer behavior, and market conditions change.

If you are interested in launching your own OTT platform or service, you will need a reliable and professional streaming solution that can help you deliver high-quality video content to your viewers. One such solution is OTTFast, which is an online video platform that offers live streaming and video-on-demand features, as well as monetization, security, analytics, and support options. Dacast also integrates with CTV devices like Roku and Apple TV, as well as with VR headsets like Oculus Go.

You can try OTTFast for free for 30 days with no credit card required. Just sign up here to get started. Happy streaming!