From Netflix to Youtube: Over-the-Top and Video-on-Demand Platform Valuation

Abstract

An over-the-top (OTT) media service is a streaming function offered directly to viewers via the Internet. OTT bypasses cable, broadcast, and satellite television platforms, the companies that traditionally act as a controller or distributor of such content. Video on Demand (VoD) allows to play-back digital content whenever and wherever the consumer wants. This industry is relatively young and rapidly evolving. It is so unsurprising that many innovative firms are still in their infancy, belonging to a startup phase. Cutting-edge applications offer entertaining solutions for Internet streaming, disintermediating the supply chain. Smartphone access to the web is eased by tailor-made M-Apps. Social media contribute to the virality of popular media content. The analysis of the innovative business models is a prerequisite for the appraisal of video on demand platforms that embed scalability options. The evaluation depends on the prioritizing identification of the crucial value drivers. The evaluation metrics are mainly based on expected cash flow and market comparisons.