The entertainment industry has always been about human creativity, but Artificial Intelligence (AI) is poised to change the game. This introduction of AI signifies a crucial turning point, holding the potential to elevate conventional entertainment into a captivating amalgamation where human ingenuity harmonizes with machine intelligence, fostering a new era of creative collaboration.

AI’s impact spans film, TV, OTT, music, and gaming, enhancing content creation, music composition, and gameplay for a captivating and collaborative future. Meeting the rising demand for curated and compelling experiences, AI is also helping to meet the increasing demand for curated and personalized experiences, making it easier for users to find the content they love.

According to the Business Research Company, the impact of AI in the entertainment market is expected to grow to $34.86 billion in 2027 at a CAGR of 26.3%. As AI continues to gain prominence in this sector, it has become a significant point of discussion among experts and enthusiasts.

This article delves into the impact of AI in entertainment and the application of AI in various verticals of entertainment and relevant real-world examples.

The impact of AI on the entertainment industry

AI in entertainment is rapidly transforming and benefiting the industry, impacting every aspect of the value chain, from content creation to distribution and marketing.

Content Creation

AI empowers companies to analyze extensive data and create tailor-made content for specific audiences.

For example, Netflix utilizes advanced machine learning algorithms to analyze viewing patterns and offer personalized content recommendations. Companies like Jukin Media and Storyful employ AI to identify potential viral content from user-generated submissions.

AI has also paved the way for innovative content forms, including virtual influencers and computer-generated actors.

Content Distribution

AI algorithms revolutionize content distribution, enabling companies to deliver their offerings to consumers efficiently.

Industry giants like Netflix and Amazon Prime rely on AI to optimize their content delivery networks, ensuring swift and uninterrupted access to content for users.

Consumer Experience

The integration of chatbots enables entertainment companies to offer prompt customer service and address frequently asked questions efficiently. Voice recognition technology allows users to control their entertainment experience hands-free.

AI-powered personal assistants, such as Amazon’s Alexa and Google Assistant, seamlessly integrate into entertainment systems, enabling consumers to interact using voice commands.

Personalization

AI algorithms analyze user data to deliver tailor-made recommendations for movies, TV shows, and music, enhancing customer retention and fostering higher engagement levels.

The entertainment industry benefits from AI-generated content, such as music and scripts, which have gained popularity over time.

Production Efficiency

AI plays a pivotal role in streamlining production processes within the entertainment sector. Tasks such as video editing, voiceovers, and post-production activities can be automated using AI, effectively reducing time and resource expenditure.

Audience Analysis

Leveraging AI for audience behavior and feedback analysis yields valuable insights. Understanding audience preferences allows content creators to develop material that resonates with viewers, elevating the overall user experience.

Marketing Campaigns

AI’s ability to interpret user data and track social media trends empowers entertainment companies to devise targeted marketing and promotion strategies. This targeted approach ensures reaching the right audiences and optimizing marketing return on investment (ROI).

Companies like Spotify leverage AI to analyze user data and curate personalized playlists, and companies like Amazon Prime and Netflix utilize AI to recommend content based on users’ viewing and purchase histories.

Language Translation in video and audio content

AI is being used to translate video and audio content into multiple languages, breaking language barriers and making it more accessible to a global audience. AI-powered translation tools can quickly and accurately translate video and audio content, saving time and money for businesses. AI also creates more natural-sounding and immersive dubbing experiences in real-time.

The transformative impact of AI in entertainment extends across the landscape, encompassing music, movies, TV, and gaming. As AI advances, its integration promises to redefine the industry creating new opportunities by revolutionizing content creation, consumer experiences, content distribution, and marketing strategies in these diverse and dynamic sectors.

The Impact of AI on the Music Industry

AI’s integration with music has led to groundbreaking developments, including AI-generated music and personalized music recommendation systems, revolutionizing the music industry.

AI-generated music: AI-generated music employs sophisticated computer algorithms to produce music virtually indistinguishable from human compositions. This process entails machine learning algorithms analyzing extensive sets of existing music data and leveraging that knowledge to create entirely new musical pieces. The algorithms discern patterns within the data and utilize these patterns to generate novel music.

There are diverse approaches to AI-generated music. Some involve neural networks to analyze vast music datasets and utilize the acquired insights to produce contemporary music. Additionally, genetic algorithms are used, where a population of music compositions is created and then progressively evolved to refine and enhance the musical output.

For instance, An AI-generated song titled “Heart on My Sleeve,” featuring the voices of Drake and The Weeknd, has gained significant popularity with over 250,000 Spotify streams and 10 million TikTok views. The musicians had no direct involvement, as the track was entirely produced by an AI artist named Ghostwriter.

Music recommendation systems: Music recommendation systems represent another remarkable application of AI in the music domain. These systems harness machine learning algorithms to analyze music-related data, enabling them to deliver personalized music suggestions based on users’ listening history, preferences, and behavior.

By analyzing user data, including listening history, music preferences, and behavior, the music recommendation system constructs a unique profile for each user. This profile is then employed to generate tailored recommendations, considering factors such as genre, mood, artist, and tempo.

Spotify, for instance, uses a variety of factors to generate personalized music recommendations for its users, including listening history, genre preferences, and even the time of day. For instance, if you’re listening to a lot of upbeat pop music in the morning, Spotify might recommend some dance music for you to listen to in the afternoon.

These AI-driven advancements in music technology are revolutionizing how we interact with and experience music, opening new possibilities for creators and listeners alike.

The Impact of AI on the Film and Television Industry

From content creation to post-production, AI is used to automate tasks, improve efficiency, and create more engaging and immersive experiences for audiences.

AI in Content Creation: Content creation, an essential phase in film and TV production, has witnessed significant advancements with the integration of AI. One prominent application is the development of scripts. AI algorithms analyze extensive datasets from existing films and television shows, identifying patterns that resonate with audiences. This analysis allows AI to predict what elements audiences are likely to enjoy, paving the way for creating tailored scripts that cater to specific target demographics.

Additionally, AI is vital in generating visual effects during content creation. AI algorithms can identify areas where visual effects can enhance scenes by analyzing video footage. These algorithms automatically generate the necessary visual effects, simplifying post-production and ensuring visually captivating content.

Deepfake technology (A type of AI) was used to de-age Harrison Ford in the opening sequences of “Indiana Jones and the Dial of Destiny”. This allowed Ford to spend less time in makeup while still looking like his much younger self on screen. The results were so convincing that many people were fooled into thinking that the footage was actually old footage of Ford.

Robosoft Technologies developed a recommendation engine for Discovery+, a leading OTT platform in the global infotainment sector. The recommendation engine, powered by Adobe and Mux Analytics, understands user preferences and recommends content based on their viewing habits. This success highlights Robosoft’s capabilities in delivering a high-quality and complete OTT solution for the world’s leading media and entertainment brands.

AI in Post-Production: Moving to the post-production phase, AI continues to revolutionize the industry. Editing, a crucial part of post-production, benefits significantly from AI-powered automation. AI algorithms analyze video footage to identify areas for potential improvements in flow and pacing. Subsequently, the algorithms autonomously make the required edits, freeing up valuable time for editors to focus on more creative tasks.

Sound effects, another essential aspect of post-production, also benefit from AI integration. AI algorithms analyze video footage to pinpoint opportunities for enhancing scenes with sound effects. The algorithms automatically generate the required sound effects, saving time and resources while maintaining high-quality audio elements in the final production.

For example, “The Mandalorian” used AI to create realistic visual effects for the show’s many action sequences. AI was also used to create realistic-looking creatures and environments. The AI-generated character of Baby Yoda has mainly become a fan favorite in the Star Wars franchise.

AI’s integration in content creation and post-production has resulted in remarkable advancements for the entertainment industry, streamlining processes, predicting audience preferences, and delivering compelling content. Embracing AI technologies remains a strategic advantage for creators and producers seeking to elevate their filmmaking and video production endeavors.

The Impact of AI on the Gaming Industry

AI’s growing popularity in gaming has introduced innovative possibilities in game design and game playing.

AI in Game Design: AI is revolutionizing game design through diverse applications. Among these, a prominent use is in crafting non-player characters (NPCs). By employing AI algorithms, game developers can create NPCs that exhibit more lifelike behaviors and offer increased challenges to players, enhancing the overall gameplay experience.

Furthermore, AI is instrumental in optimizing game mechanics. Through analyzing player behavior, AI algorithms identify areas where improvements can be implemented, creating more engaging and enjoyable games.

E.g., “Red Dead Redemption 2” utilizes advanced AI to enhance the creation of dynamic and immersive open-world environments. The game employs a sophisticated AI engine that replicates the behavior of animals, NPCs, and enemies based on their responses to the player’s actions and the surrounding environment. As a result, the interactions feel more organic and lifelike.

AI in Game Playing: AI has also found significant utility in game playing. A primary application is designing AI opponents that present players with heightened difficulty and realism. Consequently, this contributes to an improved and immersive gameplay experience.

Moreover, AI is vital in generating procedural content, including dynamic levels, characters, and other in-game elements. This dynamic content generation helps maintain a sense of novelty and excitement for players, ensuring that the gameplay remains fresh and captivating.

E.g., in “The Sims 4”, AI is employed to simulate the behavior of individual Sims, determining their interactions with other characters and their environment. Each Sim possesses distinctive needs, desires, and personalities, allowing players to craft personalized storylines and relationships. Essentially, AI serves as a catalyst for character behavior within the game’s mechanics.

By strategically leveraging AI in game design and game playing, the gaming industry stands at the brink of unparalleled advancements, promising more immersive, challenging, and enjoyable experiences for players.

AI Revolutionizing AR and VR Experiences

Augmented Reality (AR) and Virtual Reality (VR) have emerged as rapidly growing industries, reshaping our digital experiences. The integration of AI in VR/AR holds immense potential to amplify immersion and engagement.

AI in AR/VR Content Creation

• AI in Content Creation: AI is revolutionizing AR/VR content creation through diverse applications. One prominent use involves generating 3D models from 2D images or video footage, streamlining the process, and reducing costs associated with manual modeling.
• Enhancing Interactions: Additionally, AI has facilitated the development of Natural Language Processing (NLP) algorithms that foster more natural and intuitive interactions between users and AR/VR content, elevating the overall immersive experience.

A good example of this is how Disney uses AI to create more realistic and immersive VR experiences for its theme parks. The company uses AI to generate photorealistic 3D models of its characters and attractions, which can be used to create virtual worlds visitors can explore.

Disney also uses AI to create more natural and intuitive interactions between users and AR/VR content. For instance, in its Star Wars: Galaxy’s Edge VR experience, users can interact with the environment and characters using natural language commands. This makes the experience more immersive and engaging for users.

AI in AR/VR User Experience

• AI in User Experience: In AR/VR user experience, AI plays a pivotal role in multiple ways. An integral application is the implementation of AI algorithms to analyze user data, providing personalized recommendations for AR/VR content tailored to individual interests.
• Intelligent Agents: Moreover, AI-driven intelligent agents are deployed to establish seamless and natural interactions between users and AR/VR content, heightening engagement and immersion.

Netflix, for instance, uses AI to recommend movies and TV shows to its users. This same technology could recommend Augmented Reality (AR)/Virtual Reality (VR) content to users based on their interests, viewing history, and other factors. For instance, a user who has watched many action movies might be recommended a VR experience that allows them to fight zombies or explore a post-apocalyptic world.

Netflix also uses AI to power intelligent agents to help users interact with AR/VR content. E.g., an intelligent agent could allow a user to navigate a virtual world, provide information about the environment, or answer questions. This could help to make AR/VR experiences more immersive and user-friendly.

Integrating AI in AR/VR content creation and user experience is a game-changer. AI can optimize and personalize interactions, making AR/VR experiences more engaging and immersive. This has the potential to revolutionize the way we interact with digital content.

Conclusion

The entertainment industry is undergoing a profound transformation fueled by the integration of AI. AI has made significant strides in revolutionizing content creation, user experiences, and audience engagement across various sectors, such as music, movies, TV, OTT, gaming, and virtual reality.

From AI-generated music and personalized music recommendations to streamlining movie and TV production and enhancing gaming experiences, AI’s integration promises captivating and immersive entertainment. Additionally, combining AI with AR/VR opens new frontiers, offering unprecedented levels of engagement and transforming our digital experiences.

The entertainment industry’s future is bright, and AI plays a crucial role in shaping its trajectory. As AI advances and becomes even more integrated into various entertainment sectors, we can expect groundbreaking developments and continuous evolution of personalized and captivating experiences for audiences worldwide. This integration is a testament to the remarkable potential of technology to elevate human experiences and bring forth a new era of intelligent entertainment.

The introduction of OTT in the market changed how content can be accessed by an audience that is versatile and mobile. The days of sitting in one place in front of a TV to watch a match or a race is long gone.

The live sports OTT streaming and viewing experience has changed – multiple camera angles, toggling between different commentary, and instant stats and replays are making OTT platforms the go-to for live sporting events.

Global Growth and Record-breaking Views of Live Sports OTT Streaming

According to Statista’s predictions, the number of users for OTT video is projected to reach 4.22 billion by 2027. Reflecting live sports OTT streaming’s growing popularity in the US, the Super Bowl in 2023 became the highest streamed edition in the event’s history in the country with an average of seven million streams.  

In India, the India-Pakistan T20 World Cup match on the digital streaming platform Disney Hotstar attracted over 18 million viewers, showcasing the growing popularity of live-streaming in the country.

JioCinema, the official digital streaming partner of the Indian Premier League (IPL) 2023, achieved a groundbreaking milestone with an astonishing 32 million concurrent views, setting a new world record on the platform.

What’s behind the growing allure of live sports OTT streaming?

Firstly, the greater access – the audience is expanding at home and globally. Also, OTT platforms can capture the excitement of watching sporting events as they unfold. These platforms provide an exclusive experience for fans, allowing them to interact with the live feed and choose how they want to watch it.

OTT providers have the unique opportunity to maximize viewership and revenues by offering an intuitive and customizable platform, various monetization options, and the ability to stream high-quality video.

Customization of ads, regardless of geography or language, subscription plans, and channel offerings – where a viewer can access multiple graphics, listen on audio only, or view the event – all these can be delivered on the same OTT platform, engaging the audience in ways that cable TV cannot.

Providers must approach live sports OTT streaming differently.

Watching a sports event on OTT is different from watching it on television. Live sports OTT streaming telecasts are among the few events that still draw massive crowds who want to watch the action as it unfolds.

One of the biggest attractions of such viewing experiences is the unpredictability and suspense regarding what might happen. Now, OTT players have the opportunity to reimagine the sports fan’s viewing experience to make the difference from television even more striking and memorable.

Below are the key factors driving OTT adoption for live sporting events. OTT providers can focus on these to add the X-factor to their offerings.

• Personalization: Personalization improves live sports OTT streaming on platforms by tailoring content to viewers’ interests, increasing engagement, satisfaction, and discoverability of new sports. Through a deep understanding of the viewer’s geographical location, preferred sports, teams, tournaments, and viewing preferences, Roku, a leading digital media player brand, aims to deliver a highly tailored live sports OTT streaming experience. Users can personalize their live TV streams, reorganize their favorite channels on the home screen, and more. Roku is committed to supporting a diverse range of dedicated sports channels and aims to expand sports content, coverage, and viewership further by including games covered in Spanish. For example, we partnered with ESPNcricinfo to create personalized user feeds, including team alerts and real-time updates, enhancing the user experience.

• Deeper fan engagement: By incorporating replay options, multiple camera angles, gamification elements, and other interactive features, JioCinema, a leading Indian streaming service, elevated the IPL 2023 experience. They introduced viewers to various viewing perspectives, such as aerial views, stump cameras, and cable cam visions. With the power of 5G connectivity, audiences can enjoy matches on various smart devices. Moreover, their recently unveiled Virtual Reality (VR) headset, which can be easily paired with Android or iPhone devices and comes at an affordable price, aims to replicate the immersive atmosphere of being in the stadium for those watching from the comfort of their homes.

• Quality of Experience (QoE): It directly impacts user satisfaction and significantly influences the brand’s reputation. The QoE becomes even more crucial in a live sports OTT streaming setting because no fan wants to miss a key event in a game due to a buggy app. By prioritizing QoE, the app providers can deliver an experience that could also turn sports fans into fans of the app.

• Targeted advertising: Advanced technology is now available that enables top-notch targeted advertising to millions of concurrent sports viewers using live streaming. As the numbers watching a single game can be enormous, live sports OTT streaming presents a substantial opportunity to advertise in a targeted manner to a captive audience whose interests and preferences are known. For instance, Hulu uses dynamic ad insertion in its live TV service to deliver more relevant content to specific audiences.

• Multi-device/platform experience: Simultaneous live streaming to multiple platforms has become simpler with the advancement of tools and software. Users can pick up right where they left off, watch a live match on their mobile app while on the go, and easily switch to a larger screen like a Connected TV. A Multi-device, multi-platform approach can deliver truly seamless and consistent experiences to the users, regardless of their devices, operating systems, or platforms. For instance, while commuting, you can watch a live IPL match on your mobile and seamlessly switch to your living room TV at home without missing any action. For instance, Discovery+, Magnolia, and similar OTT players optimize content quality for various devices (Mobile, Laptop, Tablet, CTV), ensuring seamless user experiences. Uninterrupted viewing boosts engagement and satisfaction.

• E-commerce/fan merchandise: The surge in livestream shopping offers a prime opportunity for OTT platforms to collaborate with sports brands, delivering enticing online merchandise experiences. Take Magnolia’s example – their integrated e-commerce section within the OTT app led to increased revenue and engagement by curating collections tied to their shows. By emulating this model, OTT platforms can partner with sports brands to promote fan merchandise, driving monetization through interactive ads, promoting jerseys, and offering event tickets. This strategic alignment capitalizes on user interests while boosting revenue and engagement.

• Enhance accessibility: The idea is to offer a more inclusive live sports OTT streaming experience so that fans who might be differently abled can enjoy the excitement of watching their favorite sporting event to the fullest. One way is to include optional audio description/narration features, for instance, to support those with visual impairments. Using assistive technology in apps like TLC Go showcases the brand’s empathy towards users, fostering an inclusive entertainment experience. Features like screen readers, captions, and audio descriptions in live sports streaming enhance appeal and retention for a diverse audience, extending market reach.

• Better Digital Rights Management: With major and niche players competing for sports broadcasting, protecting intellectual property and anti-piracy measures will become a top concern. Digital Rights Management (DRM) is often mandated as a pre-requisite by the content providers before licensing the content rights to the OTT apps. It also helps bring content exclusivity, especially for premium content like early releases or live sports events on the platform, further driving user adoption.

Undeniably, live streaming increases end-user reach and adoption, giving OTT providers an excellent opportunity to accelerate their growth. For OTTs to remain profitable, providing an immersive viewing experience for the audience with contextual content and unique customizations is crucial – from how they view the live sporting event to how subscription packs are designed. Managing loyalty to the platform goes beyond purchasing streaming rights and towards providing their remote viewing audience with an experience as close as watching the actual event at the venue.

Preparing for the future of live sports OTT streaming

The trend is towards viewer-centric content, contextual experiences, and ease of access. Adding interactive elements like chat, polls, and predictions to the content that engage them on social media allows OTT providers to create a community and influence subscriber loyalty.

Having acquired a loyal viewership, OTT providers must innovate and find ways to continue fulfilling viewer experiences with the apps and platforms they offer. Ideally, this would be a mix of technology and content – low latency, high-speed delivery with consistently engaging and fresh content that grabs the viewer’s attention and keeps drawing them back. Flexible and affordable viewing options with different-priced plans are one way to capture and retain a wide range of viewers.

This is especially vital in live sports OTT streaming, which must cater to huge masses who expect to watch the action in near real-time, as much as possible, and support interactive features for engaging with them at scale. The smaller the time lapse (ideally less than 20 seconds) between the actual on-field action and when the audience gets to watch, the more likely they will remain hooked to the experience and the platform delivering it.

The future also promises numerous opportunities to leverage gamification, AR/VR experience, viewers’ watch parties, pop-up live streaming, near-live clips, highlights packages, and Free Ad-supported Streaming Television (FAST) channels to cater to a broader community of online viewers. It is up to the OTT provider to tap into these opportunities to create platforms and apps that influence subscriber stickiness.

Setting up a winning platform for live sports OTT streaming

Sports transcends culture, language, geography, and beliefs to serve up the single-most unifying of events, and OTT providers must take advantage of that aspect. Catering to different audiences while setting up the live sports OTT streaming strategy is key to its success.

Since sharing experiences is a highly acknowledged social need, OTT providers can look to enabling seamless transitions between the live feed and social media, as that will greatly add to the viewer’s experience. It will also promote the channel and its content and lay the foundation for a community.

For example, in India, Formula One moved from partnering with cable providers to hosting races on its OTT platform F1TV. This has boosted viewership of live races while providing the audience with a unique, interactive experience not available earlier. The audience can choose from different commentaries, camera feeds, and angles while interacting live with commentators on social media platforms.

The future of live sports OTT streaming will be defined around instant, accessible, on-the-go, and interactive experiences, and a tremendous way to cater to this need is by offering customizable, affordable viewing choices on OTT platforms and apps.

The rise of Over-The-Top (OTT) platforms brought a gradual downfall of linear TVs over the past decade. Consumers can watch their favorite content, on-demand and ad-free for an affordable subscription fee. This growing popularity of OTT content paved the way for many large media houses to build their own OTT platforms and monetize their content with different monetization models. However, the multitude of OTT platforms led to subscription fatigue among consumers who are now willing to watch ad-supported content if it’s free.

Enter FAST.

According to Statista, as of Nov 22, there are 217mn ad-supported OTT video users in the US. Another report indicates that the most prominent FAST services Peacock, Roku Channel, and Pluto TV make up 50% of the adult viewers. The Samsung TV Plus viewership consists of 37% of daily watchers of FAST channels among adults between 18-64.

What is FAST?

FAST is a Free Ad-supported Streaming TV service that enables viewers to watch 24X7 scheduled linear content for free. One can perceive it as a no-cost, high-quality alternative to cable TV. Imagine using a cable TV with no fee or strings (literally!) attached.

Does it sound familiar?

FAST Vs. AVOD

Yes, FAST has a few similarities with AVOD or Ad-based Video on Demand. Both these monetization models show ad-supported content and offer users a means to stream content for free. But there are aspects in which they differ as well:

• FAST platforms host linear channels that deliver scheduled programming to a mass audience on a one-to-many basis. AVOD platforms, on the other hand, offer a library of content that a user can choose to stream anytime!
• FAST can support both scheduled programming as well as Live content streaming. AVOD, by definition, is restricted to VOD.
• While FAST is more inclined towards mass marketing, in an AVOD setting, personalized advertising works best.
• FAST cannot be a part of a hybrid monetization strategy as, by definition, it is free of cost. However, AVOD can co-exist with other monetization models in a hybrid revenue model.

Why is FAST becoming a popular alternative for OTT brands and consumers?

There are many reasons why FAST is changing the OTT landscape. Some of them are listed below:

• It’s free: One of the biggest reasons why FAST is rapidly growing is that it offers ad-supported content for free. So, viewers can watch their favorite shows on Android, iOS, Apple TV, Xbox 360, Samsung Smart TVs, Chromecast or Roku devices without paying any subscription fee.
• No subscription fatigue: Customers often find it financially and mentally challenging to keep up with all the OTT subscriptions to watch their favorite content. With no such strings attached, FAST provides hassle-free access to the content.
• FAST is 24X7 programmed: Streaming providers can create channels and program content on FAST. They can schedule or ‘control’ when and what content to stream on these channels for their viewers and bring in a larger audience in the prime-time slot.
• Cable 2.0: FAST mimics traditional Cable TV setup over the internet. Many reckon it is the second coming of cable TV. This similarity with cable TV would propel high acceptance of FAST in the days to come. With an always-on (‘don’t-make-me-think’) mode and high-quality content delivery, users can enjoy a delightful viewing experience.

How can brands take advantage of FAST?

Any brand deciding to join the FAST bandwagon can do so by adopting FAST channels in the following ways:

• Upsell existing services: FAST can complement the existing services and aid in upselling. For example, streaming service providers can present a season or couple of episodes of a famous TV show run in prime time for free on its FAST app and offer a subscription in a separate SVOD app for users to continue watching. Or they can run live news feeds for free and provide pre-recorded content at a premium.
• Increase addressable market: FAST provides an opportunity to increase the addressable market or expand the customer base by adding a new free offering to an existing portfolio of paid streaming services.
• Extend shelf life of content: One of the challenges for any media house or brand is to maximize the shelf life of the content it owns. Content whose shelf life is nearing an end in the existing paid service or a popular old show from the library can be made available on the FAST service and increase the revenue generated from the asset.
• Channel creation and programming: FAST service providers can create channels for exclusive content or partner with brands and media houses that can tap into their archives and present niche content for the users. They can also build a broadcast schedule to bring in a larger audience in the prime-time slot.
• Single-series channels: YouTubers (video entrepreneurs) and media houses owning popular TV series like ‘Friends’ or ‘MasterChef’ can quickly spin up a FAST single-series channel that can offer a new revenue stream.

With no strings or subscriptions attached, FAST is rapidly emerging as a go-to consumption model for users across the globe. For content distributors, FAST helps to deliver 24/7 scheduled programming, increase the addressable market by complementing the content strategies, and ensure a positive impact on the revenue. Media companies and streaming providers would be wise to embark on the FAST journey at the earliest to leverage all the capabilities FAST has to offer and lead the next revolution in OTT that is fast approaching.

Television brought entertainment to our homes for almost a century, but it was no match for OTT’s sheer range of diverse content, non-linear menus, flexible business models, and range of distribution options. Across the world, OTT adoption increased exponentially during the Covid-19 pandemic, as people stayed home, satisfied with a supersaturated range of content to choose from. The pandemic also saw live events move online, including classes, employee town halls, customer seminars, conferences, fitness sessions, music concerts, and major sports events like the Olympics and the Indian Premier League, a hugely popular cricket tournament in India. Although people who attended online events missed the social bonding and excitement of attending in-person, the world was introduced to new possibilities of interacting online, from shopping to studying or gaming. Whether for the excitement of sports events and music concerts, or the purposefulness of learning, live streaming has become a new way to engage global and niche audiences alike.

OTT Live streaming is the new kid on the block

Even prior to the pandemic, China had already begun live streaming shopping events, with Alibaba’s Taobao Live shopping channel, launched in May 2016. Singles Day, a major shopping event in China, relies heavily on interactive live streaming. In fact, as per a survey in 2020, two-thirds of Chinese consumers said they had bought products via livestream in the previous year. The market for live streaming is definitely here to stay.

While adoption of live streaming is lower in Western countries, there is potential. Foresight Research projects that live stream shopping could reach $11 billion in the United States. This is substantiated by consumer behavior – according to Gartner, U.S. viewers between the ages of 18 and 43 spent 63 percent of their overall TV viewing time watching on average on streaming versus cable, broadcast or satellite. In fact, predictions are that by 2026, the number of users for OTT video will grow to over 3.9 billion.

Live streaming via OTT has immense possibilities, but companies would be unwise to approach creating apps or content delivery using the same set of principles as watching a series. The experience of an event is different from that of watching television, so the user experience must be reimagined from the start.

The next challenge is loyalty – despite the growing number of viewers, with innumerable choices and varied experiences available online, retaining customers is critical to keeping the business of OTT profitable. OTT platforms need to move from offering a static viewership to an immersive experience where the audiences are fully engaged. Live streaming offers this possibility – connecting users among themselves in real time and with the content like never before!

Interactive live streaming – a new set of user expectations

Interactive live streaming is the next revolution of OTT, where audiences can engage with the content and with each other during live streaming. Infusing content with interactive elements like predicting the show’s outcome, chat, polls, sharing on social media, or giving alternative viewing paths keep audiences engaged, and create a sense of community and subscriber stickiness.

When it comes to interactive live streaming, the user’s expectations are very different from what they want out of leisurely drama or family sitcom shows. Designing interactive elements for a live streaming event needs insight into what users really want – which is context-specific. For example while attending a sports match, users want the excitement of the crowd, but while consulting a doctor, they want the privacy of a calm office. In this way, they expect a high-fidelity experience; one that is as close as it gets to real life.

Best practices in designing for OTT live streaming personas

#1 Simplified sign-in – While viewers may not mind taking the time to sign in or subscribe when they want to watch a movie, they don’t want to be asked too many questions when it comes to live shows. The login process must be simplified and customized to the event. Much like in real life, if you were attending a live match at the stadium, you just want to get to your seat as soon as possible, so a quick OTP (short for One-Time Password sent via SMS, valid for a few minutes) login works. But while attending an art auction, for example, you may want to browse around before the auction begins, and like to be offered selections as per your personal aesthetic.

#2 Content discovery and personalization – There are differences in how users discover content on video-on-demand (VOD) versus live streaming. While OTT VOD providers use algorithms to suggest content based on viewing preferences, live streaming discovery is heavily influenced by social media and peer recommendation. Since time is ticking and no one wants to miss any of the highlights during any live streaming event, the content should be discoverable with a ‘Zero-click’ discovery i.e., the moment a user opens an app, the live content should be just right there, beaming!

#3 Interaction with the content – Audiences want to be able to have the power to influence the direction of the event or show. They want to participate. For example, reality shows may build in options for audiences to choose an answer or rate a contestant, while sitting at home instead of needing to be part of the studio audience to do so. For other events such as town hall meetings, polls and chat windows can source opinions and shape the dialogue. Live sports events offer fans the ability to predict the player’s performance or score.

#4 Going social – Wanting to share an experience with others is an innate social need; all formats of live streaming build on this to create a longer-term relationship with participants online and expand their reach. Watch parties may be over-rated for movies and team bonding, but they work well for sports fans who are crazy about watching games with their teams of supporters. Creating seamless transitions to and from social media to live streaming events will not only add to the viewer’s experience but also promote the channel and its content. Can viewers watch a match directly from their social media feed? Or can they share screenshots or sections of video online with their friends, with their own commentary? Similarly while shopping online, being able to discuss and share purchases with friends, or while studying together, being able to have a private chat is much like passing a note in class.

#5 Targeted advertising and merchandising – Keeping the context in mind, OTT live streaming has the ability to partner with advertisers to create relevant and personalized approaches. Sports merchandisers could for example advertise your team’s jersey to you, and allow you to directly order it in time for the match. A shopping live stream could advertise physical stores near the user in case they want to see the product if it is a high value purchase, or tie up with dealers offering test rides for vehicles.

#6 Nurturing loyalty through engagement and gamification – Bringing interactive elements to live streaming keeps audiences engaged, and lays the foundation of a longer-term relationship. But after a while, audiences are still looking at what’s in it for them. Predicting which player may hit a six in cricket or score a goal maybe fun for a while, but after that how does it help? Or for students in an online class, being interactive helps keep them engaged, but how do educators motivate them to stay engaged? This is where gamification comes in.

Brands and OTT channels have an opportunity to build loyalty using interactive elements, which again is context-specific. Overlaying a system of reward points, or tokens that can be awarded to the participant every time they interact can not only take the level of excitement up, but also keep them coming back.

The Rugby Football League, a new US-based rugby seven series plans to create a strong live betting proposition, working alongside leading technology companies to incorporate new innovations and gamification aspects. In India, MX Player introduced pure-play gaming through MX Coins. Users can win MX Coins that unlock premium content, earn discounts and avail offers on popular eCommerce platforms such as Paytm, Myntra and others.

Gamification can help build loyalty to brands and channels. In a clever campaign, Under Armour launched a surprise trivia game at the NBA playoffs. Whenever Steph Curry shot a three-pointer, the game Steph IQ would launch. There were prizes for those who could answer eight multiple-choice questions within the time window. A prize pool and the chance to enter a raffle to win the “Curry 5” signature shoe, playoff tickets, or Under Armour gear kept fans hooked, a win-win for the NBA’s viewership and Under Armour’s sales.

There are several possibilities to design and build a gamified approach, irrespective of the format of live streaming. What spells success is the depth of user insights and context relevance that goes into designing these loyalty programs. If an Edtech channel is trying to create an online community of students, badges that help peers identify the champions, quizzes, trivia contests, or competition leagues that are interesting for students. For an online shopping channel, calling out influencers with a unique sense of fashion or reward points for discounts may be more motivating.

Technology considerations to keep in mind, before going live

#7 DRM (Digital Rights Management): An obvious aspect of live streaming is to secure the content rights to broadcast the event. These can be expensive and complicated, varying from region to region. Digital rights management (DRM) is a must to assure the OTT platforms and the content owners that their valuable content is distributed and consumed appropriately.

#8 Live streaming technology stack: Unlike a physical venue, a live event is watched on a multitude of devices available to viewers. How the event gets covered from the location and streamed to individual devices must be worked out in detail. Besides planning video production, and streaming bandwidth, you also need to support the universe of devices and platforms – from iPhones and iPads to Android devices using Chrome or Edge.

#9 Near real-time experience: In any event, latency is a critical factor in the live streaming experience – viewers expect minimum or zero buffering (imagine watching an F1 race but you hear about the outcome from a friend or on social media). If you are gaming online, low latency could cause the user to lose the game or actual money. These situations cause OTT players to lose customer loyalty. Low latency must be built into the streaming experience. A strong Content Distribution Network (CDN) dispersed across regions will help deliver the event to viewers at the same time, despite being in different parts of the world. Designing the video player with adaptive bitrate streaming (ABR) can reduce or eliminate rebuffering if the viewer’s internet is slow or fluctuating by reducing the video resolution, keeping the stream live, and resulting in a seamless viewer experience.

#10 Livestream analytics: Interactivity is the main differentiator in live streaming – An important aspect is to consider how analytics can be designed for such events. Metrics on audience engagement and video playback experience are critical in understanding and continuously improving the live streaming experience. Tracking concurrent users, likes, and chat messages shared during a live interaction give an insight into audience engagement. Other metrics like rebuffering count/ratio, bit rate, EBVS (Exit Before Video Start), etc. offer insight into the quality of the video playback experience

Interactive live streaming on OTT is re-shaping digital interactions

Moving beyond TV shows, OTT is bringing the world into living rooms (and pockets) through interactive live streaming. Almost any industry can explore the possibilities that the medium offers – shopping experiences, sporting events and concerts, or entertainment. Besides the understanding of the technology involved, they need to also understand the digital journey of the user, and design an experience that resonates with the brand, which is as close to real life as possible. OTT is here to stay, and digital natives are hooked. Brands would be smart to explore the potential for loyalty and new revenue that it has to offer.