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How does Bitcoin Affect the Powerful OTT Platforms?
Movie streaming has become an increasingly popular alternative to traditional TV viewing. The major OTT platforms have also been bustling, establishing their audio streaming space.
Then, of course, there’s bitcoin and its role in disrupting the content creation and distribution market. As digital currency becomes more mainstream and readily available through online exchanges, how will it affect the movie business? Also, you can check how to buy Bitcoin from Bitcoin ATM.
3 Ways How Bitcoin Affects the Major OTT Platforms
Bitcoin is considered a significant disruption when it comes to OTT services. Suppose you are not aware of the term.
In that case, OTT stands for Over-the-top, which means that these services provide their users with content from anywhere over the internet without requiring intermediaries such as traditional cable TV companies. Thus, OTTs are considered direct competition for cable companies by the very definition.
Netflix’s CEO Reed Hastings has expressed his interest in bitcoin, suggesting that the movie and TV show streaming giant might integrate it as a payment option someday. On the other hand, HBO has just started to offer its customers the opportunity to subscribe with bitcoin.
So how does Bitcoin come into the picture in this type of business? Seven ways how bitcoin affects the major OTT platforms.
1) Hi-fi subscription services/OTT providers in general
When it comes to streaming online content, one of the most challenging issues appears when users want to pay in bitcoins and streamers don’t support this payment method.
Luckily, you can already find a lot of TV channels and streaming services that accept bitcoin payments. For example, Cointelegraph recently introduced their list of 100+ bitcoin OTT providers that offer video content streaming for bitcoins.
It’s expected that more providers will follow this trend and start accepting bitcoin payments shortly. After all, it’s not that difficult to integrate bitcoin payment into existing infrastructures (check out our blockchain API). Click Crypto Engine for more info.
Moreover, the benefit is obvious – OTT platforms would get another revenue stream by offering their users another option to pay.
2) Cable TV providers
Whenever a user wants to watch something, OTT is the first thing that comes to his mind these days due to the massive amount of content they offer. And whenever users are about to cut their cable, OTT starts looking even better since it’s cheaper and more convenient.
The cable TV providers know this trend very well and try to adapt by offering cheaper packages, more content – whatever it takes to compete with OTT services.
But the truth is that they will have a hard time dealing with OTT platforms since watching online requires only an internet connection while cable companies are still providing their users with expensive hardware and licenses to watch TV.
It’s more likely that they will collaborate with OTT providers rather than fight against them since both platforms offer different types of content and target different kinds of users.
3) OTT streaming devices
OTT streaming devices are competing directly with cable TV set-top boxes since these devices are used for streaming online content straight to your TV. The advantage is that they offer a lot more options in terms of content since there are thousands of different OTT providers around the world.
4 Negatives of Bitcoin that Affects the Central OTT Platform
1) Transaction Fees
The most apparent problem with bitcoin is that its transaction fees are pretty high. Even if the money doesn’t end up in the pockets of cable TV companies, there is no doubt they will pass this cost down to their users by increasing subscription costs.
Another major issue with bitcoins is their volatility. A perfect example is a small Venezuelan TV channel that was forced to shut down because it couldn’t afford the high transaction fees.
3) Mining costs
Finally, there is also the problem with mining itself which consumes a lot of electricity and computing power. This can be a real burden for smaller content providers that are not backed by giant companies willing to accept the costs.
4) Bitcoin black market
Bitcoin is widely used on the black markets worldwide. While this might seem like a minor issue, there is no doubt that most major OTT companies would want to stay away from illegal activities if possible.
While bitcoin could be a perfect solution for OTT platforms, some issues need to be addressed shortly. However, you might see a massive shift in paying online content in bitcoins since this type of payment is more convenient and cheaper than any other service out there.