The concept of OTT was intended not only to give people control over what they watch but also to provide viewers with an ad-free experience. However, like many systems worldwide, it became corrupted, and now, even just five minutes later, the platforms aggressively insert advertisements.
Now, the world of streaming can be categorized into two groups. One is sports streaming, and in all honesty, there’s room for advertisements in this category. For instance, if you’re watching football, there’s a substantial halftime slot, and if you’re into cricket, a few ads between overs aren’t bothersome.
However, when you venture into the realm of entertainment, the situation takes a frustrating turn. From an entirely ad-free experience, the likes of Prime Video, Netflix, and Hotstar have become notorious for inundating viewers with ads.
Hotstar used to be a reliable platform for this. From the outset, it was the go-to place for enjoying regular TV serials and more, essentially offering the feeling of “TV on your phone screen.”
However, Prime Video and Netflix reveal their less admirable side as they entice fans with an illusion. Amidst price hikes and other plans, they make users believe that they’re offering a more affordable ad-supported alternative.
When it comes to Prime Video’s advertisements, both the audience and advertising agencies have had a negative experience. Advertising executives have raised concerns about Amazon’s steep demands, which rival their annual spending on other platforms like Hulu. Also, the indecision management is costing a lot of trouble in terms of future proof strategy.
In terms of their pricing plans, Amazon ‘shockingly’ claimed they wouldn’t increase plan prices, but a twist was in store for users. They announced a shift in their cheapest plan to an ad-supported one, which disappointed their fans.
Netflix, on the other hand, often considered the most malevolent of them all, is doing a better job in this regard. With their new array of advertising strategies, they aim to outperform the competition.
Their “Binge ad” concept might be a step in the right direction for viewers and move towards a concept that’s less objectionable. In their ad-supported tier, Netflix plans to introduce this concept, which will operate on a reward system for binge-watchers.
Moreover, a reward-driven approach will likely attract more subscribers to an already popular plan. While ads may interrupt the experience, having one episode without them might make viewers believe it isn’t so bad after all.
However, the “Binge ad” concept only works if a user watches content without interruptions. Due to this, Netflix makes viewers believe they’re getting an ad-free episode, while, in reality, the platform benefits from more ads.
Now, should we really blame the platforms?
Not entirely, as the OTT world is undoubtedly moving toward an advertisement-integrated experience. By 2024, it’s expected that advertising in OTT videos will generate a substantial $191.30 billion in revenue, surpassing the halfway mark of total OTT earnings.
Though OTT platforms will likely never offer entirely free services, 43% of American users have expressed a willingness to opt for a free service with advertisements. If they can do so, they can potentially offer more affordable plans with ads.
With innovative approaches like Netflix’s, they’re poised to capture a significant share of the market.
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