Why OTT has a success?

OTT is the acronym for “over the top,” a term nowadays used to define the numerous media companies that provide content and services via the Internet, thus bypassing traditional distribution systems: in the case of television, satellite or terrestrial digital broadcasting. In fact, OTTs are often confused with simple video streaming services, since television and video content were first offered by these digital players.

Indeed, OTTs are often mistaken for just video streaming services, but they were the first to put television and video content together on a single digital platform.

However, it is worth specifying that this is an imprecise simplification. When we talk about OTT, no distinction is made based on the type of content, as the focus is on the mode of transmission.

According to a shared definition proposed by the Canadian Radio-television and Telecommunications Commission, OTTs are characterized by the fact that they do not own dedicated networks or facilities for content transmission: this is the most significant difference compared to cable or satellite TV broadcasters.

But what exactly does “over the top” mean? This expression refers to the ability of these entities to operate above networks: specifically, they do not use a proprietary network but rely on so-called content delivery networks, or CDNs.

The situation in Italy

In Italy, AGCOM has conducted an investigation on OTT related to next-generation television, referring to web-based content distributed via broadband connections and accessible through various types of devices.

Consequently, to use OTT services and content, a broadband Internet connection is essential, so much so that various market analyses highlight the link between the use of OTT services and the digital divide.

Indeed, in contexts where broadband penetration is lower, the adoption of OTT services — and thus the consumption of web-only services and content — is also lower.

OTT Television

OTT television is also known as Internet TV: it represents the various video streaming services that are increasingly spreading today, with main players including Netflix, Prime Video, Hulu, and Disney+.

Traditional television players are also increasingly adding themselves to this mix, choosing to offer content exclusively via the Internet, including content already seen on television, as well as original web-based productions, as in the case of RaiPlay and Sky Go.

Then, there are OTT voice services, such as Viber or Skype, which allow users to make voice calls over Wi-Fi or mobile data connections; these are known as VOIP.

Finally, OTT messaging includes platforms like Telegram, WhatsApp, and, more generally, instant messaging services provided by third parties other than traditional phone operators.