PRODUCTS
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Streaming services have changed how we watch TV and movies. Instead of relying on cable, we now use Over-the-Top (OTT) platforms like Netflix, Disney+, and Prime Video to get the shows and films we love, whenever we want. But have you ever wondered what is happening behind the scenes to make this possible. Steve Jobs once said, “Innovation is the ability to see change as an opportunity, not a threat.” This is especially true for streaming technology, which is always evolving to offer us a better experience.
In this blog, we will take a closer look at how major streaming services work, how these platforms deliver high quality content to the devices and keep up with the latest trends in digital entertainment. We will break down the technology and systems behind all major streaming platforms like Netflix, Disney+, Hulu, Prime Video, Peacock, Paramount+, Discovery+, HBO Max, and Apple TV+.
Before diving into each platforms technical aspects, lets outline the three main types of Video on demand (VOD) services:
1. SVOD (Subscription video on demand): You pay a regular fee to watch as much content as you want. Think of it like a monthly membership to a huge library.
2. AVOD (Advertising video on demand): You get to watch content for free, but there will be ads during your viewing.
3. TVOD (Transactional video on demand): Users pay for individual pieces of content, such as movies or episodes, on a pay-per-view basis. You pay for each movie or show you want to watch, like buying a ticket for a single event.
Technical overview of major OTT platforms
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Revenue model: SVOD
Netflix revenue model primarily relies on a subscription-based system. This model offers three different plans: Basic, Standard, and Premium by allowing subscribers to choose based on their streaming needs, such as video quality and the number of devices they can use simultaneously. By focusing on providing an ad-free experience, Netflix invests heavily in original programming, which not only differentiates it from competitors but also helps retain subscribers by offering exclusive content that cannot be found elsewhere. This strategy has proven effective, as the company generated over $33.7 billion in revenue in 2023, with the majority coming from subscriptions. Recently, Netflix has also explored adding an ad-supported tier in the US to attract more users while generating additional revenue.
What is special: Netflix is one of the biggest names in streaming. It has a huge library of TV shows and movies, including its own original series like “Stranger Things” and “The Crown.”
Netflix uses per-title encoding to optimize video streaming quality by customizing compression settings for each individual title. Instead of applying the same encoding parameters across all videos, Netflix analyses each one to assess its complexity, motion, and detail. This allows them to create tailored "bitrate ladders," which consist of different quality levels that match the video's needs. For instance, a fast-paced action movie may require a higher bitrate to maintain clarity, while a slower documentary can be encoded with a lower bitrate without sacrificing quality. This method not only improves the viewing experience by reducing issues like blurriness and buffering but also efficiently uses storage space and bandwidth. Per-title encoding ensures that video quality can adjust in real-time based on the viewers internet speed, providing a seamless and high-quality experience.
Content Delivery Network (CDN): Netflix has invested heavily in building its own content delivery network (CDN) called Open Connect, which consists of over 17,000 servers located in 158 countries. The Open Connect system is designed to adapt to different network conditions, to bring Netflix content closer to users, making it easier and faster for them to stream movies and TV shows. For example, if a user’s internet connection is slow, Netflix can automatically send a lower quality version of the video to ensure it plays without buffering. This flexibility helps maintain a good viewing experience, even if the internet speed varies.
Adaptive streaming for audio: It is a way to deliver audio and video to you in the best possible quality based on your internet connection. It splits the media into small chunks and provides them in different quality levels. An algorithm then chooses the best quality to send at any given moment, depending on your network conditions. Previously, Netflix used a fixed audio bitrate (quality) at the start of playback, regardless of your internet speed. The video bitrate could adapt, but the audio stayed the same. But now, Netflix is using adaptive streaming for both audio and video. This means the audio quality can now adjust during playback, just like the video.
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Revenue model: SVOD (with TVOD options)
Users pay a monthly or annual fee to access the platforms content, with the option to add premium channels for an extra cost. This steady flow of subscription revenue allows Amazon to produce high-quality original programming. Prime Video also generates income through advertising. The platform recently introduced an ad-supported tier, which serves targeted ads to viewers at a rate of 2-3 minutes per hour. Prime Video also allows users to rent or purchase individual movies and TV shows through its digital purchase and rental service. Prime Video generates revenue by licensing its content to other platforms or networks. By selling the rights to stream its original shows and movies, Prime Video can further monetize its investments in content creation.
What is special: Amazon Prime Video not only has its own original content like “The Marvelous Mrs. Maisel” but also lets you rent or buy movies and shows. It is a part of the larger Amazon ecosystem. United States Amazon Prime users doubled between 2017 and 2020. As of 2024, it is estimated that there are around 200 million Amazon Prime members worldwide, with a massive portion of these users in the United States.
Prime Video supports 4K resolution and HDR10. It has a feature called X-Ray that shows extra information about the content, actor details, music during playback. You can also download shows and movies for offline viewing. Prime Video uses adaptive bitrate streaming to optimize video quality based on user bandwidth.
X-Ray feature: The X-Ray feature is a tool that gives you extra information while you watch a movie or show. It shows details about the actors, their names, and other roles they have played right on your screen. This feature uses video recognition technology and metadata services to find and display this information in real time. So, if you are curious about who that actor is or want to learn more about the scene, X-Ray makes it easy to get the facts without interrupting your viewing experience.
Audio dubbing in multiple languages: Through AI-driven voice synthesis. This advanced feature leverages machine learning models to create high-quality, synchronized audio tracks in different languages without the need for traditional voiceover recording sessions. The system uses AI to accurately match voice tones, intonations, and lip movements, providing a more immersive and natural dubbing experience. This technology not only speeds up the localization process but also enhances the accessibility of content for a global audience, making high-quality dubbing more efficient and scalable.
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Revenue model: SVOD
Disney+ generates revenue through a combination of advertising, subscriptions, and partnerships. As a leading video streaming platform in India, it offers targeted advertising to brands based on user data and interests. The platform provides two subscription tiers: VIP and Premium to different content preferences, with VIP focusing on sports and Premium offering access to exclusive movies and TV shows. The platform also generates revenue through content integration and product placements with brands and sponsors. By investing in original content, Disney+ aims to attract and retain subscribers while aligning with its brand values and resonating with the target audience.
What is special: Disney+ is now the third most popular streaming service in the United States, after Netflix and Amazon Prime. This shows how many people really like Disney+ and its wide variety of content that is fun for the whole family. The exclusive shows and movies make Disney+ a top choice for many households. It stands out with its extensive collection of Disney, Pixar, Marvel, Star Wars, and National Geographic content. The platform is for families and fans of these franchises. It has great options and has exclusive shows like “The Mandalorian.”
Disney+ streams in high definition and supports 4K resolution and HDR10. It lets you download shows and movies to watch offline and allows up to four people to stream simultaneously.
Content Delivery Network (CDN): Similar to Netflix, Disney+ uses a CDN to ensure high-quality streaming with minimal buffering. CDN they use is Akamai, which optimize the media files for delivering, by ensuring low latency and high performance during streaming. They encode their data in bits so it never fails during live streams.
4K and HDR support: Disney+ supports high-definition streaming, including 4K and HDR10 for compatible devices, delivering stunning picture quality for its movies and shows. This means that viewers can enjoy their favourite content with four times the resolution of standard HD, making colours more vibrant and details clearer.
Offline playback: Disney+ allows users to download content for offline viewing, so they can watch their favourite films and series anytime, even without an internet connection. This combination of high quality streaming and offline playback enhances the overall viewing experience for subscribers.
Dolby Atmos support: It provides an immersive and high quality audio experience for compatible devices. With Dolby Atmos, viewers can enjoy movies and shows with surround sound that makes them feel like they are part of the action. The audio comes from all around, including overhead, creating a more realistic and engaging experience.
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Revenue model: SVOD (with AVOD and TVOD options)
Hulu generates revenue through a combination of subscription fees and advertising. The platform offers several subscription plans, including ad-supported and ad-free options, allowing users to choose based on their preferences. Subscription revenue is the primary source, accounting for over 50% of Hulu's total earnings. Hulu offers add-ons like premium channels and enhanced features for an extra cost. Hulu provides an attractive platform for advertisers to reach engaged audiences.
What’s special: Hulu offers a mix of current TV episodes, movies, and original shows. It also offers live TV streaming as an add on, which is a unique feature among SVOD services.
Hulu provides content in HD quality, with some offerings available in 4K. It offers a range of streaming options from live TV to on demand content. Users can access up to six profiles per account, each with personalized recommendations.
DVR functionality: Hulu + Live TV offers a DVR feature that lets you record up to 50 hours of live content, which you can keep as long as you have a subscription. For an extra fee, you can increase this limit to 200 hours and gain the ability to skip ads in your recordings.
Hybrid streaming: Hulu supports both ad-supported and ad-free streaming. It uses different pipelines for delivering ads and premium content. It allows viewers to choose how they want to watch. This hybrid approach means that users can enjoy a lower cost subscription with ads or pay more for an uninterrupted experience.
Live TV streaming: Hulu also provides live TV streaming, which uses a separate system to deliver live content alongside its on-demand library, giving viewers access to their favourite shows.
Profile management: Hulu allows up to six profiles per account, enabling personalized recommendations and settings for each user. This means that everyone in a household can have their own tailored viewing experience, making it easy to find shows and movies they love.
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Revenue model: AVOD (with SVOD options)
Peacock, NBC Universal's streaming service, employs a multi-tiered approach to generate revenue. The platform offers a free, ad-supported tier, a premium subscription with additional content and features, and a premium ad-free option. The service aims to attract advertisers with its exclusive sports content, such as NFL games and the Olympics.
What is special: Peacock has a free version with ads and a premium version without ads. It offers content from NBC, Universal movies, and exclusive original series, also it has a strong sports section with events like Premier League soccer.
Peacock supports HD and 4K streaming for some content. It adjusts the video quality based on your internet speed and lets you download certain shows and movies if you subscribe to the premium version.
Ad insertion: For the ad-supported tier, Peacock uses server-side ad insertion (SSAI) for its ad-supported tier, which means ads are smoothly integrated into the content stream without interrupting the viewing experience. This technology allows viewers to watch their favourite shows and movies while seeing relevant ads that feel like part of the program.
Premium upgrade: Users can upgrade to an ad-free premium tier. The premium upgrade option t removes ads by switching to a different content delivery system.
Content caching: Peacock caches popular content at edge locations to improve load times and streaming quality. Peacock improves streaming quality by caching popular content at edge locations, which helps reduce load times and enhances the overall viewing experience. This combination of ad integration, flexible subscription options, and efficient content delivery makes Peacock a user-friendly streaming service.
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Revenue model: SVOD (with AVOD options)
Paramount's revenue model focuses on multiple streams to maximize profitability. It primarily generates income through subscription fees from its streaming service, Paramount+, which offers a wide array of exclusive shows, movies, and live sports. Paramount earns revenue from advertising, especially on its ad-supported tier, where advertisers pay to reach a broad audience. The company also licenses its content to other platforms, allowing it to profit from its extensive library of films and television shows. Paramount monetizes its popular franchises through merchandise sales and home entertainment formats like DVDs and digital downloads.
What is special: Paramount+ offers a mix of CBS (Columbia Broadcasting System) content, Paramount films, and original series like “Star Trek: Strange New Worlds.” It also includes live sports and news, which sets it apart from many other SVOD services.
Paramount+ streams in HD and 4K for some titles. It has a user-friendly interface and adjusts video quality based on your connection speed. You can also set up parental controls and get personalized recommendations.
Hybrid streaming model: Paramount+ offers a flexible hybrid streaming model that includes both ad-supported and ad-free options, allowing viewers to choose how they want to watch their favourite shows and movies. This means that users can enjoy a lower-cost subscription with ads or opt for a premium experience without interruptions.
Profile and parental controls: Paramount+ provides customizable profiles and parental controls, making it easy for families to manage viewing preferences and ensure appropriate content for children. This combination of features enhances user experience, making Paramount+ a versatile choice for streaming entertainment.
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Revenue model: SVOD (with AVOD options)
Discovery+ generates revenue primarily through a subscription-based model, offering viewers access to its extensive library of reality TV shows, documentaries, and exclusive content. The platform provides a subscription plan, including an ad-supported option at a lower cost and an ad-free premium. Discovery+ generates revenue through strategic partnerships with pay-tv providers, allowing them to bundle the streaming service with their offerings. The platform also explores opportunities to monetize its content through licensing deals with other streaming services and international markets.
What is special: Discovery+ is all about non-fiction content like reality TV, documentaries, and lifestyle shows. It is a haven for fans of shows from channels like HGTV, Food Network, and Discovery Channel.
Discovery+ supports HD streaming with some content in 4K. It uses technology to ensure smooth playback and lets you download certain shows and movies for offline viewing.
Content delivery: It implements the “Edge caching with AI-optimized delivery.” This system leverages advanced AI algorithms to predict content demand patterns and pre-cache popular videos at edge servers closer to users. By analysing viewing trends and user behaviour in real-time, the AI adjusts cache priorities, ensuring that high-demand content is readily available at the edge of the network. This approach reduces latency and minimizes buffering, as it pre-emptively addresses content delivery needs based on predictive analytics rather than reactive caching. This dynamic and intelligent caching strategy enhances streaming efficiency and improves overall user experience by ensuring that popular and anticipated content is delivered swiftly and smoothly.
Adaptive streaming: To ensure the best possible viewing experience, Discovery+ utilizes adaptive bitrate technology. This feature automatically adjusts the video quality based on the users internet connection speed, preventing buffering and ensuring smooth playback. When a viewer starts streaming content on Discovery+, the platform analyses the available bandwidth and selects the appropriate video bitrate to deliver the highest possible quality without interruptions. If the internet connection becomes unstable or slower, the service seamlessly adjusts the bitrate to maintain a consistent viewing experience.
Offline viewing: One of the standout features of Discovery+ is its offline viewing capability. Users can download select titles from the platforms library to their devices, allowing them to watch content without an internet connection. This feature is particularly useful for those who want to enjoy their favourite shows and documentaries while traveling, commuting, or in areas with limited internet access. Discovery+ efficiently utilizes device storage to enable offline viewing, ensuring that users can access their content whenever and wherever they want.
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Revenue model: SVOD
HBO Max generates revenue primarily through a subscription-based model, offering users access to a vast library of movies and TV shows, including exclusive originals. Subscribers can choose from different plans, including an ad-supported option and a premium ad-free tier. This flexibility helps attract a wide audience. HBO Max also earns money through advertising on its ad-supported tier, allowing brands to reach viewers effectively.
What is special: HBO Max combines all the great content from HBO with additional shows and movies from Warner Media. It includes popular series like "Game of Thrones", “Succession” and a library of Warner Bros. classics.
HBO Max supports 4K Ultra HD and HDR10. It uses adaptive streaming technology and offers multiple user profiles, each with personalized recommendations. The platform also supports offline downloads for certain content.
Content Delivery Network (CDN): HBO Max uses a global CDN to ensure reliable and high quality streaming. Max uses four CDNs : Amazon CloudFront, Google's Cloud CDN, Akamai and Fastly.
Dolby Atmos support: HBO Max offers Dolby Atmos support for select titles, providing an immersive audio experience for compatible devices. With Dolby Atmos, viewers can enjoy movies and shows with surround sound that makes them feel like they are part of the action. The audio comes from all around, including overhead, creating a more realistic and engaging experience. This feature requires Dolby Atmos enabled devices and content encoded with the Dolby Atmos technology.
Personalized profiles: HBO Max allows up to five user profiles per account, enabling personalized recommendations and settings for each viewer. This feature is particularly useful for families or households with multiple users, as it ensures that everyone gets tailored content suggestions based on their viewing history and preferences. Profiles also allow users to maintain their own watch lists and continue watching from where they left off, even if others in the household use the same account.
Parental controls: To ensure a safe viewing experience for children, HBO Max offers parental control features. Parents can create a Kids Profile that restricts access to age-appropriate content, preventing young viewers from mature or inappropriate material. The platform also allows setting content rating limits and restricting access to specific profiles with a PIN code. These controls give parents peace of mind when allowing their children to use HBO Max.
Offline viewing: HBO Max allows users to download select titles for offline viewing, enabling them to watch content without an internet connection. This feature is particularly useful for travellers, commuters, or those in areas with limited connectivity. Downloaded content is stored locally on the device, and users can access it anytime, anywhere. However, it is important to note that not all titles are available for offline viewing, and there may be restrictions on the number of downloads or the duration for which content can be accessed offline.
Revenue model: SVOD
Apple TV+ operates on a subscription-based revenue model, providing users with access to a growing library of exclusive Apple Originals, including movies and TV shows. Subscribers pay a monthly fee for an ad-free experience, which focus on high-quality content. Apple TV+ also offers bundled deals with other Apple services like Apple Music to attract more subscribers and encourage loyalty within its ecosystem
What’s special: Apple TV+ focuses on high-quality original shows and movies, including hits like “Ted Lasso” and “The Morning Show.” It’s known for its exclusive content.
Apple TV+ supports 4K HDR streaming and uses adaptive bitrate technology to ensure smooth playback. It integrates well with Apple devices and offers offline downloads for many shows and movies.
Dolby vision and Dolby Atmos support: Apple TV+ supports advanced video and audio technologies like Dolby Vision and Dolby Atmos. Dolby Vision provides enhanced picture quality by dynamically adjusting brightness and colour on a scene-by-scene basis, making images more vibrant and realistic. Dolby Atmos delivers immersive sound, allowing viewers to hear audio from all around them, creating a more engaging experience. This combination of high quality visuals and audio elevates the overall viewing experience, especially for movies and shows designed to take advantage of these technologies.
Smart recommendations: Apple TV+ uses smart algorithms to provide personalized content recommendations based on viewers watch history and preferences. This means that as users watch more content, the platform learns what they like and suggests similar shows and movies they might enjoy. This personalized approach helps users discover new favourites without having to search through the entire library.
Seamless integration with Siri: Apple TV+ integrates with Siri, Apple's voice assistant, allowing users to control their viewing experience with voice commands. Viewers can ask Siri to play specific shows, search for content by genre, or even check for new releases. This hands-free control makes it easy to find and enjoy content without navigating through menus.
Family sharing: Apple TV+ supports Family Sharing, which allows multiple family members to share a single subscription. Up to six people can use the same account, each with their own personalized profiles and recommendations. This feature not only makes it cost-effective for families but also ensures that everyone can enjoy a tailored viewing experience.
Cross-Device compatibility: Apple TV+ is designed to work seamlessly across various devices, including iPhones, iPads, Macs, and Apple TVs. Users can start watching a show on one device and pick up right where they left off on another. This cross-device compatibility ensures that viewers can enjoy their favourite content anytime, anywhere, without losing their progress.
The OTT landscape is rich and varied, with each platform like Netflix, Disney+, Hulu, Prime Video, Peacock, Paramount+, Discovery+, HBO Max, and Apple TV+ offering unique revenue models and content strategies to attract and retain subscribers. As these services continue to evolve, platforms like FastPix play a crucial role in shaping the future of streaming.
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