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The Role of AI in Enhancing Content Recommendations for OTT Platforms
The Role of AI in Enhancing Content Recommendations for OTT Platforms

December 19, 2024

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OTT platforms are one of the most popular ways of entertainment, as there are many popular OTT platforms, like Netflix, Hotstar, Prime TV, etc., that offer a lot of categories of content in a single place. OTT platforms generally changed the entertainment world by providing too much convenience to the users. OTT platforms stream video and generate a lot of revenue via the watch time. Revenue in the OTT Video market worldwide is projected to reach US$316.40bn in 2024. Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.98%, leading to a projected market volume of US$443.30bn by 2029.

There are various types of content viewers that have their own taste in content.  OTT platforms have all types of content, but sometimes users are not able to find the content of their own interest. It can take them a lot of time to find the category of content that they like to watch. This is a serious issue on OTT platforms that needs to be resolved, as this can be solved using any specific technology that can provide recommendations to users on the basis of their interest.

Role of AI in Content Recommendations for OTT Platforms

Many big OTT platforms have found solutions to the recommendation issue as they have implemented AI to enhance this aspect. AI solution is the technology that is trained on natural language processing and machine learning algorithms that enable the analysis of data of users to provide them personalized experiences.

OTT platforms implement AI in order to evaluate user behavior and preferences, provide pertinent content, and customize the watching experience. These technologies have the potential to help OTT platforms decrease loading times and buffering, enhance video encoding, and optimize content distribution. There are many other beneficial aspects that we will see in detail as we move forward in this article.

There are not too many stats to show AI specifically in OTT platforms, but AI has surely reigned in the entertainment industry. The global AI in media and entertainment market size was valued at USD 15.11 billion in 2023 and is projected to reach USD 121.99 billion by 2032 at a CAGR of 26.12% from 2024 to 2032. If we talk about AI individual progress, then the market size in the artificial intelligence market is projected to reach US$184.00bn in 2024. Where the market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.46%, resulting in a market volume of US$826.70bn by 2030.

We have been well introduced to the topic with some solid stats that show the seriousness of the topic. As we move forward, we are going to see the details, like benefits and challenges. At the end, we will provide a brief summary of the whole discussion.

What is AI in Enhancing Content Recommendation For OTT Platforms?

Artificial intelligence is one of the most powerful technologies that have been developed in the last decade. This technology has the potential to change the future of every industry. For the entertainment industry, this can play an important role in enhancing content recommendations for OTT platforms.

With the AI, it is possible to analyze user behavior, past data, watched content categories, etc., that help OTT platforms to offer personalized content of their own interests. This makes users interested in watching content that directly affects the revenue generation rate for the OTT platforms.

Benefits of AI for Enhancing Content Recommendation for OTT Platforms

We are now clear about the topic of what we have to discuss, and we discussed a lot of things too with some stats. Now we have to see some benefits of AI while implementing enhanced content recommendations for OTT platforms. Here are a few key benefits mentioned below.

Improved retention

Queuing after the ongoing shows is very important. That depends on whether you want to watch more or not. AI can improve the retention of upcoming content on the basis of your interest. By analyzing the ongoing show and past history, AI helps to set up the queue of next episodes that make you feel more. For example, you are watching a crime thriller, and then I make sure to set the next episode related to the crime thriller.

Offer high-quality video across multiple media formats

Using AI for OTT platforms is not only about enhancing the recommendation, but it can also be beneficial for enhancing the streaming quality. There are many users that have limited-bandwidth devices to stream that video in high quality. But with the AI, users get the best possible video streaming quality on their network stability. This helps to enhance the users experience towards the OTT platforms.

Precise recommendations

Only recommendations do not matter, but precise recommendations matter the most. There are recommendation engines that can enhance the AI to enhance the recommendation of content for the users. For example, when a user types to watch any content in the search box, then by analyzing previous data, AI recommends related category top contents to users that make it easy for users to choose content, especially when he/she has no clear idea what to watch.

Real-time recommendations

Real-time recommendations with AI are another incredible benefit for enhancing the recommendation of content on OTT platforms. AI gives users recommendations in real time depending on how they interact with the digital good or service. Compared to traditional recommendations, this kind is quicker and more precise, and it eventually aids in optimizing the OTT user experience. This can be a great jump for recommendation and user experience on the OTT platforms.

Increase in revenue generation

OTT platforms depend on users' watch hours and subscriptions to the platform. So why provide a good experience to the users so they are able to subscribe and also recommend others to purchase subscriptions? With AI-Based Recommendation in E-Commerce and similar industries, they can deliver personalized content that makes them feel special. This makes them spend more time on the platform and also buy the subscription that results in overall revenue generation for the OTT platforms.

Challenges with AI While Implementing OTT Platforms

We have passed through the pros side, but every good has bad sides too. The implementation of AI for OTT platforms has a few challenges too, as there are a few challenges mentioned below.

  • Content recommendation with AI can face challenges and inaccuracy for new users, as there is not enough data to analyze the pattern of that user's interest.
  • Recommendation of contents on locality can be a complex task for AI, as there is a lot of content present on OTT platforms, and recommending any particular category of a specific language type is quite a hard thing.
  • Sometimes users may get bored by the recommendation of the same type with the AI that does not let discovery of new categories for the users.

Final Words

Artificial intelligence's ability to analyze data has always been incredible for any industry. OTT platforms are one of the most significant parts of today's entertainment industry, and AI plays an important role in enhancing this aspect. By analyzing users behavior and past data, OTT platforms can enhance their recommendation of content for the users that make users spend much time on OTT platforms.

This results in an increment in revenue generation for OTT platforms. There are a few challenges with AI while implementing it for OTT platforms, too, like scalability, inaccuracy for new users, limiting the users' interaction with new categories, etc., but users can tolerate these challenges with some awareness and knowledge. Overall, AI has the potential to change the way users watch content by recommending top-rated shows of their interest category that save time and do not let users get frustrated by not finding anything interesting.


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