Netflix's OTT Architecture

What are the Sectors Getting Affected by Rising OTT Platforms?

It’s recent times streaming services especially OTT platforms like Netflix and Hulu have been taking over in recent years. Increasingly people are cutting the cord and ditching their expensive cable packages in favor of cheaper, more flexible streaming options. But what does this mean for traditional TV? Is the age of broadcast and cable over?

Is the age of traditional TV over?

In recent periods streaming services like Netflix and Hulu have been taking over in recent years. Increasingly people are cutting the cord and ditching their expensive cable packages in favor of cheaper, more flexible streaming options. But what does this mean for traditional TV? Is the age of broadcast and cable over?

The answer is complicated. While it’s true that streaming services are on the rise, traditional TV still has a few things going for it. For one, there’s the question of sports. Live sporting events are still one of the few types of programming that a streaming service can’t easily replicate. That’s why many cord-cutters have found themselves subscribing to a live TV service like Sling TV or YouTube TV to keep up with their favorite teams.

Another advantage is that traditional TV has reached. There is no wonder millions of people still don’t have access to high-speed internet, which means they can’t stream shows or movies online. For these people, traditional TV is still the only option.

There’s the question of quality. While streaming services have come a long way in recent years, they still can’t match the picture quality of broadcast or cable TV. If you’re a movie or television lover, you might not be willing to sacrifice picture quality for convenience.

How OTT platforms are disrupting traditional TV

In recent years, the rise of Over-The-Top (OTT) platforms like Netflix, Hulu, and Amazon Prime Video has disrupted the traditional television landscape.

Increasingly people are cutting the cord and opting for streaming services that offer a la carte viewing options and no commercials. As a result, the way we watch TV is changing dramatically. So, what does this mean for the future of television? Let’s take a closer look.

OTT Platforms are poised to take over the television industry

As traditional television viewership continues to decline, OTT platforms are poised to take over the industry. Research firm eMarketer predicts that by 2021, nearly 2/3 of American households will have at least one streaming service. This shift from traditional television was driven by several factors, including the increased availability of high-speed internet, the proliferation of streaming devices, and the growing selection of content available on OTT platforms.

Additionally, OTT platforms offer several advantages over traditional television that appeal to consumers. For starters, OTT platforms allow users to choose what they want to watch and when they want to watch it.

There’s no need to wait to watch your favorite show to come on or sit through commercials—you can log in and start watching. Additionally, OTT platforms are much cheaper than cable or satellite TV packages, another central selling point for cash-strapped consumers.

Traditional TV is struggling to compete With OTT platforms

As OTT platform adoption grows, traditional TV providers struggle to keep up. Cable companies have lost millions of subscribers in recent years as people flock to streaming services that offer more choice and flexibility at a lower price point.

In response, many cable companies have begun offering their streaming services—but these offerings are often clunky and overpriced compared to their competitors. As a result, it’s only a matter of time before traditional TV providers lose even more market share to OTT platforms.

But OTT platforms are not just changing how we consume entertainment; they also significantly impact the entertainment industry. In this blog post, we’ll look at how OTT platforms are shaping the future of TV and movies.

More choice for viewers

One of the most obvious ways OTT platforms are changing the entertainment landscape is by giving viewers more choice in what they watch.

With so many different streaming services available, viewers no longer have to settle for what’s on TV at any given moment; instead, they can choose from a wide variety of regularly updated content. This newfound freedom of choice is having a profound effect on the way that people consume entertainment.

More opportunities for content creators

In addition to giving viewers more choice in what they watch, OTT platforms also provide new opportunities for content creators. Because there are so many

OTT platforms vying for attention, content creators now have more options than ever when finding a home for their work. This increased competition among streaming services results in better deals and more significant paydays for content creators.

Greater focus on niche audiences

OTT platforms are changing the entertainment landscape by catering to niche audiences that traditional TV networks have traditionally ignored.

By creating content that appeals to specific groups of people, OTT platforms have attracted viewers who formerly had no interest in mainstream entertainment. As a result, we see a wider variety of content than ever—and that’s a good thing!

How the rise of OTT Platforms is affecting the Traditional Media Landscape

The days of traditional television are numbered. Thanks to the rise of over-the-top (OTT) platforms like Netflix, Hulu, and Amazon Prime, people are increasingly cutting the cord and ditching their expensive cable TV packages in favor of cheaper, more convenient streaming options.

This shift away from traditional television is having a profound impact on the media landscape as a whole. Here’s a look at how the rise of OTT platforms is affecting the sectors of the media industry.

The advertising sector

Advertising has a significant role in the media industry. Without advertising revenue, most media companies would be unable to stay in business. The major problem for traditional media companies is that OTT platforms don’t rely on advertising to generate revenue as they do.

For example, charges its users a monthly subscription fee, while Hulu has both a subscription and an ad-supported option. This lack of advertising revenue is terrible news for traditional television networks, which are already struggling to compete with streaming services regarding viewership.

Moreover, the advertising sector is also feeling the pinch from advertisers shifting their spending to OTT platforms. After all, why wouldn’t they? Platforms like Netflix have massive amounts of data on their users’ viewing habits, which allows advertisers to target their ads in a way that’s far more effective than traditional television commercials.

The film sector

The film sector also feels the effects of the rise of OTT platforms. For starters, theatrical release windows—the amount of time that must elapse between a movie’s theatrical release and its release on home video or streaming—are getting shorter and shorter. This is terrible news for cinema chains, which rely on those release windows to drive ticket sales.

Additionally, many prominent Hollywood studios are now releasing their movies on streaming services at the same time they’re hitting theaters. This direct-to-streaming model was once unthinkable, but it’s becoming increasingly common as studios look for ways to stay relevant in an age when people are cutting the cord en masse.

Finally, the OTT platform is producing its movies, and TV shows, which means they compete directly with Hollywood studios for talent. Above factors are putting pressure on the film sector.

The television sector

No sector faces the effects of the rise of OTT platforms more than the television sector. As previously mentioned, people are cutting the cord in droves, which is bad news for traditional television networks that rely on cable subscriptions for revenue. Moreover, many television networks are losing viewers to streaming services offering more diverse content choices.

And if that wasn’t enough, television networks are also losing advertising revenue to OTT platforms like Netflix and Hulu (which don’t carry ads). In short, being in the television business is a tough time.

The traditional cable and satellite TV industry is the first sector affected by rising OTT platforms. These companies are losing subscribers at an alarming rate as more and more people switch to streaming services like Netflix, Hulu, and Amazon Prime Video. This decline in subscribers has reduced revenue for these companies, forcing them to lay off workers and scale back their operations.

Another sector affected by the rise of OTT platforms is the movie theater industry. With more people staying home to watch movies on Netflix, Hulu, and Amazon Prime Video, fewer people are going out to see movies in theaters. This has led to declining ticket sales and revenue for movie theaters worldwide. Many theaters closed their doors permanently as a result.

Another sector impacted by the rise of OTT platforms is the retail industry. With more people streaming movies and TV shows at home, there is less need for DVDs, Blu-rays, and other physical media. This has led to declining sales for retailers who sell these products.

In addition, many consumers are now opting for digital rentals and purchases instead of physical ones, further eating into retail profits.

The film and television industry

One of the most apparent industries affected by the rise of OTT platforms is the film and television industry. Consumers are no longer content to watch whatever happens to be on TV at a given time; they want to be able to watch what they want when they want it. This shift in consumer behavior has led to a decline in traditional television viewership and a corresponding increase in demand for content from OTT providers like Netflix, Amazon Prime, and Hulu.

In response to this shift, many traditional film and television studios have begun investing in their OTT platforms. For example, Disney+ is a direct response to the threat posed by Netflix. By creating their platform, traditional studios hope to preserve their existing business model while being able to cater to the differing demands of consumers.

The advertising industry

The advertising industry is another sector affected by the rise of OTT platforms. Because viewers can watch content on demand and frequently without commercials, brands have fewer opportunities to reach consumers through traditional advertising methods like commercial breaks.

To adapt to this new landscape, brands are turning to native advertising or advertising that is integrated into the content itself rather than being presented as a distinct interruption.

For example, a brand might sponsor an entire show episode or pay to have its product placed prominently within the show’s set design. This means of advertising is less intrusive and more likely to be seen by viewers than traditional commercials.

The retail industry

While the direct impact of OTT platforms on the retail industry may not be as immediately apparent as it is in sectors like film and television or advertising, there are indirect ways in which retail has been affected.

For example, because consumers can now purchase subscriptions to OTT platforms directly from their TV or streaming device, there’s less need for them to visit retail websites like Amazon or iTunes.

In addition, because viewers can watch shows and movies whenever they want, there’s less need for them |to buy DVDs or rent movies from retailers like Redbox.

This shift away from purchasing physical media has hurt retailers’ bottom lines. To adapt, many retailers have started selling digital gift cards that can use to subscribe to popular OTT platforms. Others have begun investing in streaming devices like Roku to sell consumers everything they need to access their favorite shows in one place.

Broadcast television

One of the noticeable changes has been in the broadcast television sector. For years, broadcasters have relied on cable and satellite operators to carry their channels and sell them to consumers. However, with the notable OTT platforms like Netflix and Hulu, that is no longer the case.

Consumers can now subscribe to these services and watch their favorite shows without having to set foot in a cable or satellite provider’s store.

This has had a significant impact on broadcasters’ revenues. In the past, they would receive a percentage of the monthly fees cable and satellite operators charged their subscribers.

Now, hosts feel the pinch with more people canceling their cable subscriptions in favor of cheaper OTT alternatives. They are searching for innovative ways to monetize their content and reach their audiences.

Cable and satellite operators

The rise of OTT platforms has also significantly impacted the cable and satellite industry. As we mentioned before, cord-cutting is becoming more and more popular as consumers realize they can get their favorite shows and movies without paying for an expensive monthly subscription. This has led to a decline in revenues for many cable and satellite providers.

In response, some operators have started offering their streaming services. Others have partnered with OTT providers like Netflix or Hulu to keep their customers from canceling their subscriptions altogether.

It shows how successful these strategies will be in the long run, but it is clear that the traditional cable and satellite model is under threat from OTT platforms.


OTT platforms have also had a significant impact on advertising revenues. In the past, most advertisers would buy ad time on broadcast television or radio.

There is no longer the case with special streaming services like Spotify and Pandora. Advertisers can now target specific audiences with far greater precision than ever before by buying ad space on these platforms online.

This has led to a decline in ad revenues for traditional media outlets such as television and radio stations. This trend is likely to continue as OTT platforms become more popular and advertisers increasingly look to target specific audiences with laser accuracy.


The answer to whether traditional TV is dying is complicated. While it’s true that streaming services are on the rise, there are still several advantages that broadcast and cable have over their digital counterparts. Sports fans, for example, will find it challenging to give up live sports programming.

And people who don’t have access to high-speed internet will still be stuck with traditional TV as their only option. For now, it seems likely that both traditional TV and streaming services will coexist for the foreseeable future.

The OTT platform revolution is affecting all entertainment industry sectors, and staying ahead of the curve is important if you want to remain competitive.

If you’re looking for help in understanding how these platforms work and how they can benefit your business, contact us. Our team has the best experience to help businesses like yours leverage OTT platforms’ power to reach numerous customers and grow their bottom line.

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