Over-the-Top Application

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What Does Over-the-Top Application Mean?

An over-the-top (OTT) application is any app or service that provides a product over the Internet and bypasses traditional distribution. Services that come over the top are most typically related to media and communication and are generally, if not always, lower in cost than the traditional method of delivery.

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Techopedia Explains Over-the-Top Application

You can think of an over-the-top application as anything that disrupts traditional billing models – from telcos or cable/satellite companies. Examples include Hulu or Netflix for video (replacing your regular TV provider) or Skype (replacing your long distance provider).

The creation of OTT applications has led to a wide-ranging conflict between companies that offer similar or overlapping services. The traditional ISPs and telcos have had to anticipate challenges related to third-party firms that offer over-the-top applications. Think, for example, of the conflict between a company like Netflix and a cable company. Consumers still pay the cable company for access to the Internet, but they might get rid of their cable package in favor of the cheaper streaming video over the Internet. While the cable company wants to offer fast downloads, there is an inherent conflict of interest in not supporting a competitor, like Netflix, that bypasses cable’s traditional distribution channel.

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Margaret Rouse
Editor

Margaret jest nagradzaną technical writerką, nauczycielką i wykładowczynią. Jest znana z tego, że potrafi w prostych słowach pzybliżyć złożone pojęcia techniczne słuchaczom ze świata biznesu. Od dwudziestu lat jej definicje pojęć z dziedziny IT są publikowane przez Que w encyklopedii terminów technologicznych, a także cytowane w artykułach ukazujących się w New York Times, w magazynie Time, USA Today, ZDNet, a także w magazynach PC i Discovery. Margaret dołączyła do zespołu Techopedii w roku 2011. Margaret lubi pomagać znaleźć wspólny język specjalistom ze świata biznesu i IT. W swojej pracy, jak sama mówi, buduje mosty między tymi dwiema domenami, w ten…