#2 Concept Series : What is the Difference between OTT and IPTV
Is OTT better than IPTV, will OTT replace IPTV has been some of the long pending debates. At an onset it is unfair to compare OTT with IPTV since there exists more dissimilarities that what meets the eye. IPTV (Internet Protocol Television) and OTT (Over the Top) although share key commonality of using internet as the content delivery mechanism but outside that they are widely different i.e. business model, quality of service, quality of content, ownership, cost etc. OTT streaming is the delivery of audio/video content using regular / open / unmanaged Internet and unlike IPTV, there is no dedicated network or infrastructure provided by the operator. Last few years have seen OTT gaining widespread popularity with large number of relatively low cost service providers like Netflix, Hulu etc. offering video on demand services gaining large market share and widespread consumer loyalty and subscription. Below are some the key differences
| Comparison Category | OTT ( Over the Top) | IPTV ( Internet Protocol TV) |
|---|---|---|
| Content Delivery | Uses open internet, un-managed network. Open ecosystem | Uses dedicated, managed network. Walled garden ecosystem |
| Network Type | Delivered from content provider / aggregator to the viewer using open network. Usage of CDN | Closed, proprietary network, accessed via a specific internet service provider |
| Network Relationship | Without the need for intervening carriage negotiations, or infrastructure investments | Services are delivered on optimized and custom high bandwidth network |
| Quality of Service (QOS) | Not guaranteed, works under best effort conditions | High quality, reliable network with control over quality of services |
| Service Examples | Popular Video on Demand services like YouTube, Netflix, Amazon LoveFilm, Hulu, Sky Go, BBC iPlayer etc. | IPTV services like U-Verse (AT&T), Prism TV (CenturyLink) |
| Delivery Protocol | Delivered over HTTP / TCP, a connected transport protocol. Movement towards adaptive streaming technologies HLS (Apple), Smooth Streaming (MS) and HDS (Adobe) | IPTV uses Transport Stream (TS) transmission technology. Uses RTP (Real time protocol) over UDP, a connectionless protocol |
| Content Catalog | Widely used for freemium and economical subscription VOD | Used primarily for premium VOD and real time content delivery like broadcast TV |
| Content Type | Typically not premium in nature due to security, absence of DRM | Premium content |
| Routing Topology | Unicast (HTTP), Simulated Multicast (UDP/TCP) | Multicast. Initial unicast burst during channel change leading to Multicast join |
| Service Category | Complementary Service | Main service, similar to Satellite/Cable TV services |
| Major Platform Players | OVP (Online Video Platforms) like Kaltura, Brightcove, CDN Players like Akamai, L3, Limelight, Cloud Service Providers like Amazon | TSP ( Telecom Service Providers) and IPTV platform vendors - Microsoft Mediaroom ( now Ericsson) , ALU, Cisco |
| Key Challenges | Low quality of service, absence of live broadcast, non premium content, unicast delivery model | Expensive, Heavy investment in Bandwidth and infrastructure |
| Key Benefits | Low cost, flexible model, Easy to manage and operate | High quality of service and quality of experience. Monitoring and control, interactive services |
Over the Top content delivery has enabled many new non traditional players to enter, establish and compete with traditional players namely CSPs and TSPs . Although OTT service has gained significant subscribers it is still limited by quality and catalog of content offered and remains as a complementary services to regular cable. Today OTT is not competent enough to disrupt or replace the incumbent service providers but future holds great potential.
OTT providers have the advantage of providing cheaper service model without having to make the heavy investments associated with CSPs and telcos TV by harnessing revenues models leveraging existing networks. OTT has provided major boast towards cost saving, convinience, greater choice, freedom and empowerment to users. OTT has also been instrumental in driving multi screen, multi platform content convergence as well as greater role for content owners/providers to have direct relationship with end consumers
