What is Cloud TV? Full Guide: Definition & Benefits

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Cloud TV has been present in the market for a few years, but it truly gained widespread recognition in 2020.

Globally, it raked in a revenue of $1.2 billion in 2020, and it’s projected to increase to $4.2 billion by 2026.

With work, education, and entertainment shifting online following the COVID-19 outbreak, businesses are transitioning from traditional TV to Cloud TV.

To offer on-demand viewing, enhance the user experience, and enable interactive content consumption.

In this article, we will look into everything businesses need to know to provide Cloud TV services to their audience. With that in mind, let’s get going.

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Difference Between Cloud TV and OTT TV

Cloud TV

Cloud TV is specifically crafted to facilitate the smooth integration of premium TV streaming services for broadcasters, content owners, and telecom providers across a wide range of screens, including set-top boxes. 

This platform provides a versatile streaming solution, empowering audiences to enjoy their favorite content with utmost convenience, no matter when or where.

In fact, users have the capability to stream both live and pre-recorded video content on their devices.

OTT TV

OTT TV offers an innovative approach to content delivery, utilizing the Internet to serve content to end users.

This enables viewers to access their favorite shows on a range of devices, including Smart TV app, gaming consoles, etc.

Also, via the industry leading streaming devices like Chromecast, Amazon Fire Sticks, and Apple TV.

However, it’s important to note that OTT TV app content is usually not accessible for streaming on mobile devices, desktop computers, or laptops.

This distinction approach makes OTT TV a popular choice for those seeking flexibility and a diverse range of viewing options. 

All in all, Cloud TV surpasses OTT TV in several ways, as it empowers traditional TV providers to deliver their services through a cloud-based infrastructure.

Cloud TV allows for targeted content delivery to specific audience segments, offering them tailored content and services.

This enhances user satisfaction and rapidly expands the user base to a much greater extent. 

Here’s the content in tabular form for your better clarity:

Aspect	Cloud TV	OTT TV
Content Delivery	Seamless integration of premium TV streaming services for broadcasters, content owners, etc.	Makes use of the Internet to deliver online video content to end users.
Device Compatibility	Multiple screens, including set-top boxes.	A wide range of devices, such as Smart TVs, gaming consoles, etc.
Content Access	Users can stream live and pre-recorded video content.	Accessibility is primarily limited to streaming devices and Smart TVs.
Platform Versatility	Versatile streaming solution for convenient content viewing.	A popular choice for those seeking flexibility and a diverse range of viewing options.
Features	Flexible streaming options – On-demand content – User-friendly experience	Broad device compatibility – Diverse content offerings – Convenience in content access
Popularity	Widely adopted in the online video broadcasting industry.	A popular choice for cord-cutters and on-demand content consumers.

How Cloud TV Work

Cloud TV operates by utilizing hardware equipment installed at the customer’s premises, which acts as a localized data center to facilitate the distribution of TV content to various Cloud TV devices utilized by the subscriber. 

This approach eliminates the need for system operators and the involvement of multiple video streaming solution providers.

An impressive feature of Cloud TV is its ability to allow television subscribers to stream their recorded content from virtually any location.

From a technical standpoint, the process involves converting video and graphical elements into a cohesive format, typically represented as either an MPEG (Moving Picture Experts Group) feed or HTML (Hypertext Markup Language).

This unified content is efficiently transmitted through Set-Top Boxes (STBs) via dedicated video streaming services.

Furthermore, Cloud TV’s architecture and capabilities empower users to access their preferred TV content on-demand, stream live broadcasts, and enjoy a seamless viewing experience across multiple devices.

Additionally, Cloud TV offers customization and interactive features, providing viewers with a more personalized and engaging television experience.

In essence, Cloud TV revolutionizes the distribution and consumption of television content, offering greater convenience, flexibility, and accessibility.

To a diverse audience, all while allowing subscribers to enjoy their saved recordings from virtually anywhere of their choosing.

Cloud TV Benefits – Shaping The Future of Television

The global surge in active Internet users, reaching 5.3 billion in 2023 from 4.6 billion in 2019, signifies a transformative shift catalyzed by the Covid-19 pandemic.

The widespread adoption of work-from-home setups has redirected the focal point of work, education, and entertainment. 

Thereby, subsequently transforming traditional television viewers into avid Cloud TV users.

This trend is expected to persist, making it imperative to explore the substantial benefits that Cloud TV brings to businesses in this ever-changing digital environment.

Low Investment to Set up a Cloud TV Service Provider Business

In contrast to the substantial investments required for setting up the traditional television infrastructure, establishing a Cloud TV service requires a much lesser investment to set up the whole in-house infrastructure. 

The initial setup involves acquiring and installing hardware equipment while minimizing maintenance costs.

This financial advantage positions businesses to enter the TV streaming market with greater ease, fostering an environment conducive to innovation and growth.

Scalability & Flexibility

The streaming industry demands businesses to be scalable and flexible to effectively cater to diverse audience segments.

Cloud TV excels in meeting this requirement by providing scalability and flexibility in terms of watch hours, viewership, and the volume of consumed video content. 

Nevertheless, this adaptability allows a vast number of businesses to keep pace with market trends and respond dynamically to evolving consumer preferences, thereby ensuring a competitive edge in the dynamic entertainment landscape.

Hassle-free Operations

Without a doubt, Cloud TV operates with efficiency and simplicity, eliminating the need for an extensive in-house workforce to manage, migrate, or upgrade workflows.

Once the Cloud TV infrastructure is in place, minimal staff are required for operational activities. 

The utilization of Content Delivery Network (CDN) enhances content delivery speed compared to traditional television, and the incorporation of multi-DRM technologies ensures the secure transmission of video content through the Internet.

This streamlined operational approach reduces complexities and enhances the overall efficiency of the Cloud TV service.

Access to Detailed Analytics

A key advantage for Cloud TV providers is the access to detailed analytics, providing profound insights into the behavior of the target audience.

Analyzing engagement rates, watch time, preferences, and other metrics empowers providers to tailor content delivery strategies. 

This data-driven approach enhances the ability to cater to specific demographic locations and user personas, ultimately contributing to increased revenue through a more personalized and engaging viewer experience.

Provide Content In-demand

Cloud TV stands out by providing curated content tailored to align seamlessly with the audience’s preferences.

In contrast to traditional television, which frequently offers a diverse range of content, Cloud TV providers utilize a data-driven approach to highlight movies, television shows, and videos that are not only relevant but also in high demand.

This targeted content strategy not only accelerates viewership growth but also solidifies Cloud TV’s position as the go-to entertainment channel.

By consistently delivering tailored and relevant content experiences, Cloud TV becomes the preferred choice for users seeking a personalized and enriching entertainment journey.

Data Protection

As Internet activity surges, ensuring robust data protection measures becomes utmost important.

In 2025, the alarming increase in ransomware and malware activities underscores the need for stringent security protocols.

Cloud TV, operating as a conduit for streaming video content via the Internet, addresses these concerns by prioritizing data protection. 

Indeed, implementing advanced security measures not only safeguards the integrity and confidentiality of online video content.

But also assures both providers and viewers of a secure streaming environment in an era marked by heightened cyber threats.

Advantages of Cloud-Based Platforms Over OTT

Cloud TV surpasses traditional OTT platforms in various aspects, offering a more streamlined and efficient approach to content delivery.

Unlike OTT platforms, which require careful formatting of video files for online delivery, Cloud TV leverages advanced technologies to enhance user experience. 

The functions traditionally handled by OTT staff, including formatting videos, ensuring data protection, recording live streams, managing data storage, and facilitating seamless data transmission, are seamlessly integrated into the Cloud TV architecture.

Efficiency Through Minimal Manpower

One significant advantage of Cloud TV over OTT is the minimization of manpower required for content delivery.

When it comes to OTT, the expansion of the target audience’s geography necessitates a proportional increase in operational staff, resulting in substantial investments. 

Contrarily, Cloud-based television streaming proves highly scalable and adaptable, requiring no significant increase in existing work staff to accommodate the growing number of viewers across diverse geographies.

This scalability not only ensures cost-effective operations but also positions Cloud TV as a versatile solution. 

No Additional Investment In Hardware

In addition to the manpower, OTT platform providers will have to invest in hardware to grow their business.

In fact, high-end servers are required to deliver content and they have to be updated periodically. Additional staff will also be required to maintain the newly purchased servers.

Cloud-based streaming, however, operates on a highly scalable and flexible model, eliminating the need for additional human resources and hardware investments beyond the initial setup phase.

The same set of hardware and personnel can efficiently maintain, operate, and upgrade systems to cater to any number of viewers.

Efficient Content Storage and Delivery

A distinguishing feature of Cloud TV is its reliance on cloud servers for content storage.

This approach significantly reduces investment costs related to hardware and personnel, providing added benefits such as efficient transcoding of video files. 

Content stored on the Cloud is not only efficiently managed and accessible but is also readily available for delivery to clients’ devices at any time.

This ensures a seamless and uninterrupted streaming experience, enhancing the overall satisfaction of the end users. 

Geographically Optimized Infrastructure

Cloud TV’s content, residing on the Cloud, brings additional advantages in terms of infrastructure optimization.

The ability to host content on Cloud servers located worldwide allows for strategic placement in regions with target audiences. 

The proximity of Cloud servers to users, achieved by delivering content from the closest data centers, minimizes latency in video streams.

This contributes significantly to an enriched viewing experience, ensuring swift and seamless access to content for users globally.

Conclusion

Now that you are equipped with an understanding of how Cloud TV operates and its myriad benefits, it’s time to seize the opportunity.

The market boasts numerous Cloud-based OTT software providers, presenting a number of options for your business. 

To make the right choice, articulate the objectives of your Cloud TV venture, pinpoint your target audience, and delineate the content preferences of your end viewers.

Armed with this invaluable data, select a cloud OTT platform service aligning with your business needs and audience expectations.

This strategic choice will pave the way for your platform’s success in record time. 

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