The culture of renting movies at Blockbuster is long gone— so much so that “Be Kind, Rewind” is a phrase that would stop any young person in their tracks (probably much like the title of this blog!). The days of a DVD skipping at the most suspenseful part of a movie are over. Why?
The answer is simple, and almost all of us use it: Over the Top media.
Over the Top media, more commonly known as “OTT,” is any media that customers can access directly without subscribing to a complete media package such as cable. This way, the content customers pay for is closely suited to what they actually want to watch, without all the extras that they don’t.
OTT is even more convenient now with the common use of Connected, or Smart, TVs. These link directly to the internet and allow trusted devices such as Roku, AppleTV, and PlayStation to stream various OTT services. While Netflix originally bridged the gap between renting movies and streaming media on Connected TVs, OTT options have multiplied quickly. Competition has presented itself in an interesting way: when researching, consumers now find that there are too many options.
So, what sets the winners apart? When you go to the grocery store for a bag of chips, faced with an entire aisle of goodies, which do you choose? Of course, you choose the one that you like the best, from a brand with a good reputation. In OTT, those attributes are categorized by content and User Experience (UX).
Content is relatively easy— if you have kids, you’ll probably gravitate toward Disney+. If you have a thousand favorite television shows, then Hulu is currently your clear choice. But what happened when Disney+ added another paid tier, and that one movie your kids really wanted to see was no longer accessible unless you upgraded? What happened when Hulu’s awkward search feature didn’t pull up that new show you really wanted to binge watch? If you’re like most OTT customers, in just a few clicks, you began researching your next option!
This is the future of competition for OTT. In a world of instant gratification and immediate choices, User Experience is of utmost importance. Streaming companies have one chance to make an impression on their customers, and while content is quantifiable, the quality of users’ experience is what will continue to shape the competition. In a world where consumers are quick to take to social media to complain, companies often have the advantage of knowing what works and what doesn’t in real time. The key is how quickly they listen.
OTT is not going anywhere any time soon. In fact, its popularity has increased in the past year and is projected to grow exponentially in the next decade. In this market, plenty of companies will continue to vie for customers’ attention, but content and user experience are the two key factors to their success. Offering a variety of content, at a reasonable price, without going too far and reinventing cable is vital. The design and depth of accessibility in their platforms is critical.
“Be Kind, Rewind” might be outdated, but the deciding factor for OTT companies going forward comes down to two classic successful business practices: how well they listen to their customers, and how quickly and effectively they implement adjustments.