Are you a TV enthusiast who’s heard about the terms OTT and Connected TV, but can’t quite wrap your head around the differences? You’re not alone! These terms have been thrown around a lot in recent years, and they’re often used interchangeably. Despite that, they’re different concepts of the TV viewing experience that are important to understand.
OTT (Over-The-Top) and Connected TV refer to the ways viewers consume televised content. The difference lies in how they access that content. Connected TV refers to televisions that have built-in Wi-Fi and access to the internet, so users can stream content directly through the TV. Alternatively, OTT refers to the streaming services that provide content without a traditional cable or satellite connection, using the internet instead.
These two terms have blurred lines between them and are often used carelessly. But understanding their differences can help you make better decisions about what types of television services suit you best. As options for how we watch TV continue to evolve, it’s important to have some clarity to decide which route you want to take. So let’s dive deeper into the concepts of Connected TV and OTT to see what sets them apart!
The Rise of OTT and Connected TV
The rise of OTT (over-the-top) and connected TV has transformed the television industry. It has changed how people watch TV and how content is delivered to audiences. OTT refers to the delivery of video content over the internet, bypassing cable and satellite TV providers. Connected TV, on the other hand, is a TV that is connected to the internet, allowing viewers to access streaming services such as Netflix, Hulu, and Amazon Prime Video.
- OTT is on the rise due to the increasing popularity of streaming services. According to a report by Convergence Research Group, the number of US households that have cut the cord to traditional TV providers rose by over 2 million in 2020, reaching a total of 34 million households.
- Connected TV is also growing rapidly with research by Parks Associates showing that 76% of US households have a connected TV device.
- The COVID-19 pandemic has further accelerated the adoption of OTT and connected TV. With more people staying at home, the demand for streaming services has increased significantly, leading to a surge in subscribers.
OTT and connected TV have given consumers more control over what they watch and when they watch it. They have also created more opportunities for content creators and distributors. For example, streaming services have been able to produce original content, giving viewers access to shows and movies that they might not have seen otherwise.
Understanding OTT Streaming Services
If you’re new to the world of streaming services, you may have come across the terms OTT and Connected TV. While they are related to each other, they refer to different ways of accessing streaming content. In this article, we’ll take a closer look at the differences between OTT and connected TV.
What is OTT?
- OTT stands for Over-the-Top and refers to streaming services that are delivered directly to viewers over the internet.
- OTT services do not require a cable or satellite subscription, and viewers can access them from a variety of devices, including smartphones, tablets, and smart TVs.
- Examples of OTT streaming services include Netflix, Hulu, and Amazon Prime Video.
What is Connected TV?
Connected TV refers to a television set that is connected to the internet. This allows viewers to access streaming services and other online content from their TV. Connected TVs can come equipped with built-in apps for popular services like Netflix and Hulu, or viewers can connect external devices like a streaming stick or game console.
The Differences
The key difference between OTT and connected TV is how the streaming services are accessed. With OTT, viewers can access streaming content from a variety of devices beyond their TV, including smartphones and tablets. Connected TV, on the other hand, requires a smart TV or an external device like a streaming stick to access streaming services.
| OTT | Connected TV |
|---|---|
| Streamed directly over the internet | Requires a TV connected to the internet |
| Accessed from a variety of devices beyond the TV | Requires a smart TV or an external device like a streaming stick |
| Examples include Netflix, Hulu, and Amazon Prime Video | Examples include Roku, Apple TV, and Google Chromecast |
While OTT and connected TV are different, they both offer viewers easy access to a wide range of streaming content. Whether you prefer to stream from your smartphone or watch on your TV, there is likely a service that will meet your needs.
Everything You Need to Know About Connected TV Advertising
Connected TV (CTV) is the future of television. It is a type of television that is connected to the internet, allowing viewers to access streaming services and other online content. With the rise of cord-cutting, more and more people are opting for CTV over traditional cable or satellite TV.
What is CTV?
- Connected TV is a type of television that is connected to the internet.
- CTV allows viewers to access streaming services and other online content.
- CTV is rising in popularity as more people opt for it over traditional TV.
Connected TV is changing the way advertisers reach their target audience. With CTV, advertisers can use data to reach specific demographics, allowing for more personalized and targeted advertising. This is much more effective than traditional TV advertising, which often reaches a broad audience.
Benefits of CTV Advertising
There are many benefits to advertising on CTV:
- Personalized and targeted advertising
- High viewability and completion rates
- Large reach
- Less ad clutter
- Measurable results through data analytics
| Traditional TV Advertising | Connected TV Advertising |
|---|---|
| Broadcast to a broad audience | Target specific demographics |
| Low viewability and completion rates | High viewability and completion rates |
| High ad clutter | Less ad clutter |
| Difficult to measure results | Measurable results through data analytics |
Overall, Connected TV is the future of advertising. With its ability to deliver personalized and targeted ads, high viewability and completion rates, and measurable results through data analytics, CTV is changing the game. Advertisers who want to stay ahead of the curve should consider adding CTV to their advertising strategy.
OTT vs. Cable TV: Which One Should You Choose?
As more and more viewers cut the cord and move towards streaming services for their television needs, it’s important to understand the difference between over-the-top (OTT) and cable TV. While cable TV providers have been the mainstay for decades, OTT services have come to dominate in recent years, but which one should you choose? Let’s take a closer look.
OTT vs. Cable TV
- OTT: OTT stands for over-the-top and refers to any service that delivers video content over the internet, without the need for a traditional cable or satellite service. Examples of OTT services include Netflix, Hulu, and Amazon Prime.
- Cable TV: Cable TV providers deliver television content to your home through a physical cable connection. Providers such as Comcast, Spectrum, and AT&T offer cable TV packages that include a variety of channels and on-demand content.
Benefits of OTT
One of the main benefits of OTT services is the flexibility they offer. Viewers can watch content on any device with an internet connection, making it easy to watch on-the-go or away from home. Additionally, most OTT services offer a month-to-month subscription, rather than locking customers into a long-term contract.
OTT services also tend to have a lower cost than cable TV packages. For example, Netflix’s most popular plan costs $14 per month, while cable TV packages can cost upwards of $100 per month.
Benefits of Cable TV
While cable TV packages may have a higher cost, they do offer a wider variety of channels and live sports options. Additionally, cable TV providers often have local partnerships that allow for special programming and access to local news and weather.
Another advantage of cable TV is the reliability of signal. Because cable TV is delivered through a physical cable connection, it is less likely to experience buffering or interruptions in service due to poor internet connection.
Which One Should You Choose?
| OTT | Cable TV |
| Lower cost | Wider variety of channels |
| Flexibility to watch on any device | Reliability of signal |
| No long-term contract | Access to local partnerships and programming |
The decision between OTT and cable TV ultimately comes down to personal preference and priorities. If flexibility and cost are the most important factors, then OTT services may be the way to go. However, if access to a wider variety of channels and live sports is a priority, then cable TV may be the better choice.
How Connected TV is Revolutionizing the Way We Consume TV
Connected TV (CTV) is an emerging trend that is changing how we watch television. Before CTV, our only options were either traditional broadcast or cable TV, we used to be limited to whatever was airing on a specific channel at a particular time. Nowadays, CTV has become a way of life for cord-cutters and on-demand viewers, giving them a personalized viewing experience that is not available with traditional television.
- CTV is Everywhere – The primary advantage of CTV is that it’s available on multiple devices – Smart TVs, gaming consoles, streaming devices such as Roku, Amazon Fire TV, and Apple TV, to name a few. Users can easily access thousands of channels and apps, like Netflix, Hulu, HBO, or YouTube, without paying for a TV subscription.
- CTV is Interactive – CTV enables interactivity with the television by allowing users to interact with ads, games, surveys, and other extras in real-time. This opens up the possibility for advertisers to get deeper engagement with their audience. Furthermore, it provides viewers with the ability to search for content based on their liking, using voice-controlled interfaces.
- CTV Provides an Ad-Free Experience – Unlike traditional TV, CTV offers an ad-free experience, with users having the option to subscribe to their favorite on-demand services such as Netflix, Amazon Prime, and Disney+. This is particularly appealing to an audience that finds conventional advertising either too repetitive or irrelevant.
According to a recent study, the use of CTV has increased dramatically over the last few years, and the trend is expected to continue. In the United States alone, 168.1 million people watched connected TV in 2020, with predictions forecasting an additional 30 million users by 2023. With this in mind, advertisers must pivot their marketing strategies to this new way of television consumption.
Cord-cutters, on-demand viewers, and people who prefer personalized TV experiences have embraced CTV, and it has transformed the way viewers consume television content. By providing freedom of choice, interactivity, personalization, and an ad-free option, CTV has opened up new horizons in the realm of television consumption that were once impossible.
| Pros | Cons |
|---|---|
| Ability to choose what you want to watch | Loss of live television events |
| No commercials or advertisements (optional) | Possibility of slower content playback |
| Access to numerous streaming services | Requires a device with internet connectivity |
| Ability to pause, rewind and fast-forward content | Limited to available internet bandwidth |
| High-quality streaming available with 4K/HDR format | Requires subscription fees to access certain content |
Cord-cutting is now considered a trend, and with CTV’s unique ability to offer a more personalized viewing experience, people are shifting towards personalized TV consumption that is both affordable and sustainable in the long run.
How OTT services are affecting the TV industry
OTT (over-the-top) services have been on the rise and continue to disrupt the traditional TV industry. With more and more viewers opting for streaming services, the industry has undergone significant changes. Here are six ways OTT services are impacting the TV industry:
- Bypassing traditional distribution channels: Rather than relying on cable or satellite TV for distribution, OTT services provide content directly to viewers through the internet. This allows for more flexibility and control for both viewers and providers.
- Customized viewing experiences: OTT services offer personalized recommendations, the freedom to choose what to watch, and the ability to pause/rewind shows. This type of customizability is appealing for viewers and has been successful in carving out a niche in the market.
- Changing advertising models: Traditional TV commercials are being replaced by on-demand and targeted advertising models. Although this can be seen as a positive movement towards a more efficient marketing strategy, it has brought new challenges in metrics and targeting.
- Competition with cable TV: As the number of cord-cutters grows, traditional cable TV providers have shifted their focus to offering streaming services of their own. This has resulted in a more competitive market, but also the need to ensure quality, affordable pricing, and diversity in content.
- Production and content: With the rise of OTT services, the demand for original content has surged. Streaming providers can provide lower-cost, original content to attract viewers. This has led to new opportunities for independent creators while also increasing competition in the industry.
- Data and analytics: From viewer behavior to engagement rates, streaming platforms can collect extensive data on their users. This allows providers to tailor content and advertising to a specific audience, offering a more comprehensive strategy for success.
Conclusion
The rise of OTT services has transformed the TV industry and has brought both benefits and drawbacks for providers and viewers alike. As we look to the future, it will be interesting to see how this trend continues to evolve and shape the way we consume content.
| Pro’s | Con’s |
|---|---|
| Greater flexibility for viewers | Can be more expensive to subscribe to multiple services |
| Personalized viewing experiences | Variety and quality can be inconsistent across services |
| Increased competition and diversity in content | Internet connectivity issues can cause buffering and quality problems |
| Opportunities for independent creators | New metrics and data collection strategies have raised privacy concerns |
Overall, OTT services are changing the way we consume TV and are shaping the future of the industry.
Connected TV vs. Smart TV: What’s the difference?
Connected TVs and Smart TVs are two different terms that are often used interchangeably, but they are not the same. Connected TV is a term used to describe a TV that is connected to the internet, either through a wired or wireless connection. Smart TV, on the other hand, is a TV that has the ability to connect to the internet and provides a range of built-in applications and services.
- Connected TV is simply a TV with an internet connection, whereas Smart TV is a TV that provides an internet connection and built-in applications.
- Connected TV requires an external device, such as a streaming stick or box, to access video streaming services like Netflix. Smart TV has built-in apps for these services.
- Connected TV has limited functionality, whereas Smart TV allows users to browse the web, access social media, and download and use various apps.
When it comes to choosing between a connected or Smart TV, it ultimately depends on the user’s preferences. If the user’s main goal is to stream content, a simple connected TV with a streaming device may be sufficient. However, if the user desires a more comprehensive experience that includes browsing the web and using various apps, a Smart TV may be the better choice.
It is important to note that while Smart TVs are more expensive than connected TVs, they may be worth the investment for those who want a seamless, all-in-one entertainment experience.
| Connected TV | Smart TV |
|---|---|
| Requires an external device to access streaming services. | Built-in apps for streaming services. |
| Internet connection but limited functionality. | Allows users to browse the web, access social media, and download and use various apps. |
| Less expensive. | More expensive. |
In conclusion, while the terms connected TV and Smart TV are often used interchangeably, they have distinct differences. Connected TV is simply a TV with an internet connection, whereas Smart TV is a TV with built-in applications and services. Ultimately, it is up to the user to decide which option best suits their entertainment needs.
What is the difference between OTT and connected TV?
1. What is OTT?
Over-the-top (OTT) refers to a content delivery model where video or audio content is accessed over the internet, through a third-party app or service, bypassing traditional distribution channels.
2. What is connected TV?
Connected TV refers to any television or device that connects to the internet, either through a built-in ethernet port, Wi-Fi, or an external streaming device.
3. How is OTT different from connected TV?
OTT refers to the delivery of content, while connected TV refers to the device accessing the content. In other words, you can access OTT content on a connected TV, but not all connected TVs support OTT content.
4. Which devices support OTT content?
Smart TVs, gaming consoles, set-top boxes, streaming sticks, and mobile devices can all support OTT content.
5. How does OTT impact traditional broadcasting?
OTT allows for more personalized content delivery and has changed the way viewers consume media, leading to a shift away from traditional broadcasting and an increase in cord-cutting.
Thanks for reading!
We hope this article has helped clarify the difference between OTT and connected TV. As technology continues to evolve, it’s important to stay informed about the latest trends in media consumption. Visit us again soon for more informative content.