OTT as a source of growth and revenue for Telcos

OTT as a source of growth and revenue for Telcos
23.10.2018 Zaif Khan

The Impact

The impact of multi-sided online-based services or Over-the-top (OTT) technologies has been all but good on the telecommunication industry over the past few years. The major drivers for this change is the shift in consumer preferences and the rapid evolution of innovative services in the field of messaging, voice and video content.

This rapid adoption and piggybacking of OTT services on Telcom network infrastructures have led to an exponential growth in the demand of data traffic. The global mobile data traffic is hence forecasted to increase from 7 EB per month (Exabyte) in 2016 to 49 EB in 2021.

An Industry-wide shift

Telcos, hence, are now on the lookout and adoption of alternate revenue models and sources. One such source can be a global OTT platform. Being an experience-based business model, delivering entertainment through video streaming, music, and other content, OTT has so far been a far-fetched idea for telcos.

Wide-spread adoption of 4G technologies and a move towards 5G puts an even greater emphasis on media content consumption. Telcos employing these technologies are at a bigger advantage as they have the ability to bundle individual services and offer an even more captivating package to their users. This is evident by the research conducted by GSMA across the four major markets of the US, Spain, India, and China, where a majority of users showed preference towards operator led advanced services.

An own global OTT platform has the potential to attract millions of users by providing additional services online across various platforms and cutting down all middle-men and extra costs. Globally, OTT revenues are stipulated to cross $68 billion and the number of video subscriptions reaching 474 million by the end of the year. Hence, with such impressive numbers and growth, it makes sense to grab a share of this market with a global OTT service.

The Solution

Contrary to popular belief, telcos don’t have to acquire a big media company or an OTT service to get into the OTT industry. In order to build an OTT platform, an organization needs a solution that has end-to-end workflow capability from video ingest, content management and processing, metadata management and processing, DRM protection, integration of payment and catalog services, to final delivery of content to millions of user devices across platforms.

Axinom is a digital OTT solution provider that can help telcos build a highly scalable global platform. The end-to-end workflow based on Axinom products of Axinom VIP (a video ingest and processing system), Axinom CMS (an industry-leading content management system), Axinom BIS (a backend interface and services system with third-party integrations), Axinom DRM (a multi-digital rights management service) and Axinom FE SDK (a frontend SDK to integrate and build frontends), is not only flexible and agile but also very robust.

It is evident that OTT is the future of entertainment and with an OTT platform telcos can build a revenue stream and growth that has been unexplored so far. In order to explore opportunities or for more information, contact our media contact person:

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