MVPDMulti-Channel Video Programming Distributor

MVPD is a service which delivers multiple channels on cable or satellite television.  Some of the well-known operators are Comcast, Dish TV, Direct TV, Time Warner Cable, etc.  Be it cable TV providers or wire line providers such as Verizon and AT&T, both avail MVPD service to provide content to their subscribers.  MVPD has the capability to deliver linear channels at fast speed. Until recently, traditional television was the only source for accessing video content.  But rapid expansion in the video ecosystem has led to the emergence of other technologies that have more potential to attract the audience.  There is a need for MVPD to understand the changing needs of their viewers and upscale their infrastructure.

This significant transformation in the entertainment industry has resulted in MVPD and digital mediums coming together emerging the new technology known as VMVPD.  “V” stands for Virtual.  VMVPD is a service which provides live channels on the internet. Viewers can now watch linear television on the internet.

OTT – Over-The-Top

What is OTT?

OTT is a service which let users stream online content without having to subscribe for any cable connection.  It bypasses the telecommunication broadcasting channels. It’s called Over the Top as it delivers content over the internet.  With the growth of the internet and smart devices, OTT providers such as Netflix, Amazon,  Hulu, and YouTube have been able to pull the audience especially the millennial.  Over the Top services are witnessing massive growth which has certainly impacted the viewership of linear television. With OTT services viewers have the option to watch content as per their interest and availability. OTT providers create their own original content which is high on quality. The idea of any time, anywhere access is being endorsed by most of the households.  More than 50% of households in the US and UK have already got their cable connection disconnected and prefer accessing video on demand. Add-on devices like Google chromecast, Amazon fire stick let users with non-smart TV to connect to the internet.

History of OTT

Before the spread of smartphones such as the iPhone and Android, businesses that provided various services, including digital content such as video and audio, provided services through telecommunications carriers. When using the service, the service usage fee is added to the communication charge of the carrier, so the user does not have to worry about paying for the service. Since there were limited services only for telecommunications carriers, it was not possible to use content services depending on the contractor. Currently, with the spread of smart devices and technological advances such as communication speed and user experience, there are multiple methods via the Internet such as membership registration, authentication, and payment. This makes it possible to provide content services such as video and audio without necessarily going through a telecommunications carrier. Therefore, it is said that telecommunications carriers are not included in OTT, and the term “Over The Top”, which has the meaning of “exceeding the limit” and “above the limit”, is used as a general term without being bound by the conventional method. It came to be done.

Types of OTT

There are various types of OTT, both paid and free, and it is expected that new services will continue to increase in the future. In introducing the types, I will divide them into OTT video, OTT voice, and OTT messenger.

OTT videos include YouTube, Hulu, Netflix, Amazon Prime Video, DAZN, TVer, FOD, Paravi, TELASA, ABEMA, Discovery Channel Dplay, J: COM On Demand, Disney Deluxe, etc., which are represented by video distribution sites. ..

OTT voices include Spotify, Apple Music, Amazon Music, LINE MUSIC, YouTube Music, etc.

OTT messenger includes Facebook Messenger and LINE. 

Difference between MVPD and OTT

S.No.MVPD – Multi-Channel Video Programming DistributorOTT – Over-The-Top
1MVPD delivers multiple channels on cable or satellite TV.OTT services deliver content 
2Subscription to cable connection or set top box is necessary.Availability of high speed internet is must for streaming OTT content. 
3Usually households avail services from only one of the available cable providers.Users can subscribe to multiple OTT service providers.  A Netflix user can also buy subscription on Amazon Prime. 
4Viewers through MVPD services have the luxury to watch live TV.We haven’t had all the shows live yet but the possibility of watching live on OTT is definitely doable, e.g. IPL match on Hotstar.
5There is a limitation of location; one cannot watch live TV while travelling.Content can be accessed from anywhere so there is no limitation of location. 
6Unlike OTT content, MVPD services are viewed only on television sets.OTT content can be viewed on multiple devices like laptop,  tablet,  mobile,  television etc. 

Advantages of OTT Video over Traditional TVs:

  • Accurate targeting to eliminate waste
  • Strengthening leading to increased engagement , advertising relevance
  • Focused , complementary strategies and build and supplement-based campaigns : Reach Increment manages frequency, target competitors, and focus for expired customers
  • Improved accountability – Quantify the effectiveness of television. Optimize future campaigns