Wednesday, March 20, 2019

What is an "OTT?"

I was reminded recently of the importance of “meaning” when we use words. Some people see terms such as 5G, IoT, mobility, satellite, undersea communications and “hear” technology. I myself “hear” businesses.

“Over the top” is that sort of word as well. Most often, the term “OTT” refers to third parties delivering products directly to buyers and users using an internet connection without paying a distribution partner for access rights.

It is synonymous with “edge provider,” a term referring to “a website, web service, web application, online content hosting or online content delivery service that customers connect to over the internet.”

It is a bit of a misnomer. On IP networks, all products, services and data are delivered direct to end user or customer irrespective of access network ownership.

Carrier-owned apps are delivered the same way, but nobody refers to such services as OTT. And that speaks to our understanding of the terms.

OTT,  to refer back to terms such as 5G, is a word referring to roles in the internet ecosystem, not technology.

In recent days, as access providers (cable TV, telco and satellite) have started to offer their own streaming services, the phrase  “direct to consumer” has been used, as compared to managed video subscriptions that rely on platforms distinct from the public internet.

That still remains imprecise, as third parties and access network owners can go “direct to consumer.”

The point is that the term OTT, edge provider or direct-to-consumer will continue to cause some confusion, as the words refer to roles or functions in the ecosystem as well as methods of product delivery.

The former makes more sense than the latter. To confuse matters even more, sometimes firms occupy multiple roles in the ecosystem. So Facebook is simultaneously a platform, an app provider, an ISP, and now a wholesale supplier of optical capacity.

Apple is a device supplier, app platform and now “OTT” itself in the streaming video and audio realms. Comcast and AT&T are ISPs and mobile services suppliers as well as providers of business communications and owners and producers of video and movie content.

There will always be some room for misunderstanding when people talk about OTT, edge provider or direct-to-consumer. The words do not carry the same meaning for everyone.

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