Generative AI, advanced analytics, and technology accelerators are driving the evolution of OTT platforms for streaming services.
GlobalLogic*
A recent report by GlobalLogic pointed out that three technologies are driving the transformation of the OTT industry towards more sustainable business models with a focus on user experience: generative artificial intelligence, advanced data analytics and technology accelerators.
The report also notes that partnerships with telecommunications companies are key to integrating streaming services and offering package plans that enable hyper-personalized experiences.
According to Gartner, more than 50% of telecom CIOs project to achieve 70% automation in critical areas such as network operations and business processes in the coming months, reinforcing the need for OTT platforms to move towards smarter and more collaborative operating models with Telcos.
In this regard, Juan Navarro, Vice President & Head in Latin America at GlobalLogic, believes that these technological solutions allow OTTs to become smarter organizations. "Our study showed that those companies that bet on AI-based recommendation engines, intuitive interfaces, personalization and accessibility will have more possibilities to retain audiences and reduce cancellations."
User-Centered Development
In the United States, seven out of ten people consume media via OTT, and it is estimated that by 2029 there will be more than 421 million users in this market, according to Statista. However, the subscription model is facing pressure: Nearly half of users say they would cancel their services if prices go up, according to Deloitte.
"In Colombia, according to the CRC, 55% of households have an Internet + television package and 27% have a Triple Play service (Internet, TV and telephone). This convergence between digital and traditional services reflects that perceived value and user experience are determining factors," said Navarro.
The report also highlights how the industry has been diversifying its business model towards a combination of live and on-demand content, advertising monetization and alliances with Telcos to integrate platforms such as Netflix or Max into their service plans. In addition, it highlights key challenges such as the importance of strengthening security (with encryption, blockchain, CDN and multi-factor authentication), using data analytics for strategic decisions and applying OTT accelerators to reduce costs, automate tests and integrate payment systems.
Innovation for the new OTT era
"The convergence between technology, data and innovation is what will allow OTT platforms to remain relevant and profitable in an increasingly competitive environment. AI and machine learning mark a new era of efficiency in the streaming experience. Adopting these technologies is no longer an advantage, but a condition to stay current," Navarro emphasized.
Within this framework, GlobalLogic works with companies in this industry to develop solutions that allow them to:
• Launch proprietary video platforms
• Integrate third-party services such as Netflix or Disney+
• Optimize the user experience on mobile devices
• Monetize with hybrid models: subscription + advertising (AVOD)
"The key is not to have more content, but to offer a flawless experience. That is the basis for attracting more engaged audiences and ensuring the sustainability of digital business. This is achieved by combining design, data and technology. At GlobalLogic, we integrate AI-powered personalization, real-time analytics, and intelligent automation to strengthen content strategies, increase engagement, and make the operation more efficient," Navarro concluded.
*GlobalLogic is a company of the Hitachi Group, specialized in digital engineering.
