What Is Cloud TV? Full Guide: Definition & Benefits
Cloud TV emerged as a prominent player in the market a few years ago, gaining widespread recognition in 2020. In the global arena, it amassed a staggering revenue of $1.2 billion during that year alone, with projections estimating an impressive $4.2 billion by 2026.
The post-Covid-19 landscape witnessed a significant shift towards online platforms for work, education, and entertainment. This transition prompted businesses to move away from traditional television and embrace Cloud TV, which offers on-demand viewing, enhanced user experiences, and interactive content consumption.
In this article, we aim to provide businesses with comprehensive insights into offering Cloud TV services to their audiences.
Distinction between Cloud TV and OTT TV Cloud TV:
Designed to enable broadcasters, content owners, and telecom providers, Cloud TV facilitates the seamless integration of top-notch TV streaming services across various screens and set-top boxes. It empowers users to enjoy their favorite content anytime, anywhere, granting access to both live and pre-recorded videos on their preferred devices. We are video streaming service providers in India
OTT TV: Over-the-top content providers deliver their offerings through the internet, utilizing devices such as Smart TVs, PlayStation, Chromecast, Amazon Firesticks, Apple TV, and Xbox. However, OTT TV content cannot be streamed on mobile, desktop, or laptop devices.
Cloud TV surpasses OTT TV by allowing traditional TV providers to deliver their services using cloud-based infrastructure. By catering to specific audience segments and providing customized offers, Cloud TV enhances user satisfaction, rapidly expands its user base, and contributes to increased profitability for businesses.
Understanding the Functioning of Cloud TV
Cloud TV operates through a platform that leverages hardware equipment installed at the customer’s premises. This equipment acts as a data center, enabling the distribution of TV content across multiple Cloud TV devices owned by the user. This eliminates the need for system operators and multiple video streaming solution providers.
Technically, video and graphics undergo processing to form a single MPEG (Moving Picture Experts Group) feed or HTML (Hypertext Markup Language). This content is then delivered to users via set-top boxes using video streaming services.
Benefits of Cloud TV for Businesses
The global internet user base reached 4.66 billion in 2021, a significant increase compared to 3.969 billion users in 2019. The Covid-19 pandemic played a pivotal role in driving work, education, and entertainment into people’s homes worldwide. Consequently, Cloud TV has replaced traditional television viewership and will continue to do so on a large scale in the foreseeable future. Let’s explore the benefits of Cloud TV for businesses:
- Lower Investment Requirements: Unlike traditional television providers, Cloud TV demands relatively lower initial investments for setting up the in-house infrastructure. The setup primarily entails acquiring hardware equipment, installation, and maintenance.
- Scalability and Flexibility: Any streaming business aiming for success must be scalable and adaptable to cater to diverse audience segments. Cloud TV excels in scalability and flexibility, accommodating increased watch hours, viewership, and the consumption of video content.
- Streamlined Operations: Operating a Cloud TV service does not necessitate a large in-house team for maintenance, migration, or workflow upgrades. Once the Cloud TV infrastructure is set up, minimal staffing suffices for operational activities. Content delivery networks (CDNs) ensure faster content delivery compared to traditional television. Moreover, the utilization of multi-DRM (Digital Rights Management) technologies guarantees secure transmission of video content over the internet. We provide video streaming services in India
- Access to Detailed Analytics: Acquiring key insights into target audience behavior is crucial for effective content delivery. As a Cloud TV provider, you gain access to comprehensive analytics regarding your targeted demographic, including engagement rates, watch time, and preferences. These valuable insights enable precise content delivery tailored to specific demographics and user personas, ultimately boosting revenue.
- Demand-Driven Content: Unlike traditional television, Cloud TV providers curate and offer movies, TV shows, and videos based on audience preferences. By promoting relevant and in-demand content, Cloud TV experiences exponential viewership growth within a short span of time. Adopting a data-driven approach gives Cloud TV providers a competitive edge over other entertainment channels.
- Data Protection: As internet activity continues to rise, robust data protection measures are essential for businesses. In 2020, ransomware activity surged by 435%, while malware activity increased by 358% compared to 2019. Cloud TV ensures that all video content streamed through the internet is securely transmitted, employing various multi-DRM technologies to safeguard data.
Why Cloud-Based Platforms Outperform OTT for Businesses Cloud TV represents a significant advancement over OTT platforms.
With OTT, video files must be formatted for delivery to users’ devices via the internet. Operational staff is required to handle several functions, including video formatting, data protection, live streaming recording, adaptive video playback, data storage, and data transmission.
- Minimal Manpower: OTT platforms entail a lengthy process for delivering video content, necessitating increased operational staff when targeting larger audiences across different regions. This substantial increase in manpower incurs significant costs during periods of audience growth. In contrast, Cloud-based television streaming is highly scalable and adaptable. Existing staff can efficiently handle growing viewer numbers across various regions.
- No Additional Hardware Investment: In addition to manpower, OTT platform providers must invest in hardware to expand their business. Servers are required for content delivery, necessitating periodic updates and additional staff for maintenance.
Conversely, cloud-based streaming eliminates the need for additional hardware investment. The highly scalable and flexible nature of cloud infrastructure means that the initial hardware and personnel can efficiently maintain, function, and upgrade systems to cater to any number of viewers.
- Cloud Server Benefits: Cloud TV content is stored and hosted on the cloud, reducing hardware and employee investment. Cloud hosting facilitates efficient transcoding of video files, ensuring they are readily available for delivery to users’ devices at any time.
- Geographically Distributed Infrastructure: Since all content is hosted and stored on the cloud, cloud servers can be strategically located worldwide. Hosting content on servers close to the target audience’s region enables faster content delivery from their nearest data center. This significantly reduces video stream latency.
Now that you understand how Cloud TV operates, its benefits, and its potential as the next big thing, it’s time to take action. Numerous Cloud-based OTT platform providers exist in the market. To choose the right one for your business, define your cloud TV business objectives, narrow down your target audience, and identify the content your audience desires.
With this data in mind, select a cloud OTT platform service that offers the features required to cater to your audience effectively, ensuring your business achieves success in record time.
If you already have an idea for starting a Cloud TV platform, schedule a free demo to receive expert assistance in implementing your vision.