Over-the-top (OTT) streaming media services are simply any media service that distributes content directly to consumers via the internet. The term “over-the-top” refers to delivering content “over” rather than “through” a traditional cable box.
Streaming media services are companies that allow viewers to access media content like movies, TV series, music, podcasts, and live sporting events over the internet. Users may play streaming media content on a variety of devices, including computers, smart TVs, media players, smartphones, and other internet-connected devices. Rather than downloading entire media files — which can take quite a long time and consume a large amount of space on a device — streaming media services continuously transmit a few seconds of media, which is played immediately on the user’s device and is subsequently deleted.
What are the benefits of streaming media services?
Demand for streaming media services has risen sharply as users have come to appreciate the many benefits of this new technology.
- Media on demand. With audio and video streaming services, users can access and play music, movies, or television shows whenever they choose, rather than waiting for a show to be aired on TV or for a favorite song to be played on the radio.
- Ad-free viewing. While some streaming media services feature ad-supported programming, many also offer ad-free viewing for users who pay a subscription.
- Offline options. Though streaming media requires an internet connection, many providers offer options to download content to devices, allowing users to consume media when they are offline.
- Lower costs. Streaming media services may offer lower prices than traditional cable companies. And since streaming platforms offer access to a vast library of media, it’s much cheaper for users to subscribe to a streaming media service than to buy individual movies and TV shows on DVDs or music on CDs.
- Greater flexibility. Streaming media services are favorites of cord-cutters — consumers who abandon traditional landline phone services and cable television subscriptions in favor of internet-based services.
How do streaming media services earn revenue?
There are several basic business models that enable streaming media services to make a profit.
- Subscriptions. Many streaming services charge a monthly subscription fee that allows users to access a large library of content as frequently as they choose.
- One-time purchases. Services may also charge a one-time fee for certain content. For example, users may purchase a new release of a movie, which they can access online as often as they like. Alternatively, they may rent a movie for a certain time. One-time purchases are also frequently offered for exclusive live sporting events.
- Ads. Many streaming services feature an ad-supported tier of free streaming services that allows users to watch programs at no charge, but with ads intermittently played during programming breaks. Some ad-supported streaming services like Tubi and Crackle feature thousands of movies and TV shows that are available for free.
How do streaming media services work?
Streaming media services store audio, video, or gaming content on dedicated media servers that typically reside in multiple locations around the world as part of a content delivery network (CDN). This allows providers to stream content from locations closest to users to minimize latency. The server uses a process of “encoding” to compress the file, and a process of “transcoding” that creates multiple copies of each file in a variety of file sizes, video quality, and screen resolutions that will be ideal for different types of devices. When a user requests to view a video or listen to an audio file, the streaming media server breaks the file into a series of small data packets that can be transmitted via the internet. A media player on the user’s device receives the packets, reassembles them into a video or audio file, and plays them immediately. In a process called buffering, the media player preloads several seconds of the streaming file ahead of time to ensure a smooth and interrupted playback despite changes in internet speeds and quality of connection. After each bit of the media file has been played, it is deleted from the user’s device.
What devices can play content from streaming media services?
Streaming media may be played on:
- Smart TVs. Devices like Android TVs, Samsung Smart TVs, and Sony Smart TVs are purposely designed to accommodate streaming services.
- Computers. Most desktops and laptops with Windows or iOS operating systems feature media players for streaming content.
- Mobile devices. Virtually all smartphones and tablets offer streaming functionality.
- Gaming consoles. Viewers can watch streaming content or play streaming games on products like Xbox and PlayStation.
- Streaming devices. Products like Roku, Chromecast, Amazon Fire TV, and Sling TV are purpose-built for streaming media.
What is live streaming vs. on-demand streaming?
While most streaming services feature on-demand content, some also offer live streaming of sporting events, concerts, or television shows. Live-streaming services transmit media files in the same way as on-demand streaming, but content is sent immediately from the cameras and equipment recording the event rather than from servers that have stored prerecorded content. Live TV streaming services transmit programming like live sports, political events, public ceremonies, and live news coverage.
What are the top streaming media services?
Some of the world’s best streaming services for video content include Netflix, Amazon Prime Video, Hulu, Disney, Peacock, Starz, Apple TV+, and Paramount. Many of these services license content from other vendors and content producers. For example, the Disney+ streaming service features content from Disney, Pixar, Star Wars, National Geographic, and Marvel, while Discovery+ and Max (formerly HBO Max) feature content from Warner Bros., Cinemax, Comedy Central, BBC Studios, and many others.
Many traditional U.S.-based TV channels like ABC, CBS, NBC, and FOX also offer streaming content via apps. Some traditional cable channels like Showtime, Starz, BET, MTV, and AMC can also be accessed via apps, or via streaming services like Hulu and Philo. Sports fans can watch MLB, NHL, NFL, NBA, and MLS games on a variety of streaming channels, including ESPN+, Fubo, and YouTube TV.
The top music and podcast streaming services include Spotify, Apple Music, SiriusXM Internet Radio, LiveOne, and YouTube Music.
Frequently Asked Questions (FAQ)
A streaming media server is a web server that is dedicated to storing and delivering prerecorded content to user devices via an internet connection. Streaming media services use a vast number of streaming media servers located around the world to deliver high-quality video and audio content to users with minimal latency.
Live video streaming and video delivery solutions enable content providers, businesses, and individuals to transmit live video content around the world with high quality and low latency. Live video streaming and video delivery solutions may include cameras, encoders, transcoders, storage, streaming media servers, content delivery networks, analytics, and streaming management solutions.
Akamai Adaptive Media Delivery is a streaming media server optimized for adaptive bitrate streaming to deliver a superior viewing experience across fixed and mobile networks with varying connection speeds.