Topics In Demand
Notification
New

No notification found.

7 Ways AI Is Powering OTT Growth for Media and Entertainment
7 Ways AI Is Powering OTT Growth for Media and Entertainment

July 9, 2025

40

1

The way people consume content has changed dramatically in the last few years. Audiences today expect more than just on-demand access — they want smart, seamless, and personalized experiences. As a result, media and entertainment companies are rethinking how they build and scale their OTT platforms.

Artificial Intelligence (AI) is becoming a key part of that shift.

The global OTT revenue is expected to reach around $434.5 billion by 2027, and platforms that use AI to personalize content, optimize delivery, and automate operations are seeing measurable results. For example, Netflix reports that 80% of the content watched on its platform comes from AI-driven recommendations, while AI-powered ad targeting is increasing conversion rates by up to 50% across leading OTT networks.

This isn’t just about futuristic tech — it’s about solving real business problems: reducing churn, increasing watch time, optimizing monetization, and making smarter content investments.

If you're investing in OTT app development or planning to upgrade your current streaming platform, it's crucial to understand where AI can add the most value. From content personalization to smarter monetization, AI is quickly becoming a foundational element of successful OTT strategies.

In this guide, let's explore 7 high-impact ways AI is driving OTT growth — and how media and entertainment businesses can capitalize on this evolution.

1. Personalized Recommendations That Keep Viewers Hooked

One of the most visible ways AI transforms OTT platforms is through personalized content recommendations. By analyzing viewing behavior, watch history, location, device usage, and even time of day, AI can deliver hyper-targeted suggestions that feel intuitive to each viewer.

This not only improves user satisfaction but also increases watch time and platform loyalty — a critical factor in reducing churn. Companies investing in OTT platform development today are prioritizing AI-based recommendation engines as a core feature from day one.

Stat to note: Platforms using AI for personalization see up to 35% more engagement than those that don’t.

2. Smarter Content Strategy with Predictive Analytics

Behind every successful show or film is a strategic decision. AI helps OTT platforms make those decisions faster and smarter.

Predictive analytics can evaluate past performance, user preferences, genre trends, and demographic insights to forecast how content might perform before it's even produced or licensed.

For content owners and media executives, this means fewer misses and more hits. Whether you're commissioning originals or acquiring regional titles, AI enables data-backed choices that minimize risk and maximize ROI.

3. Intelligent Ad Targeting & Monetization

Not every OTT app relies on subscriptions. For ad-supported models, AI plays a major role in maximizing revenue without hurting user experience.

AI enables:

  • Real-time audience segmentation
  • Contextual and behavioral targeting
  • Dynamic ad placement that feels native, not intrusive

This leads to higher click-through rates, better brand alignment, and ultimately more revenue, all while maintaining user satisfaction.

If you're considering AI in OTT app development, smart ad tech integration should be on your roadmap, especially for hybrid or AVOD (Ad-based Video on Demand) business models.

4. Real-Time Streaming Quality Optimization

No one wants to watch a movie that constantly buffers. AI helps platforms deliver the best possible streaming experience by dynamically adjusting video quality based on user device, bandwidth, and network conditions.

AI can also optimize:

  • CDN usage to reduce latency
  • Encoding settings for bandwidth efficiency
  • Load balancing to manage traffic spikes

This technical edge leads to smoother playback, fewer drop-offs, and a better overall impression of your brand, especially in emerging markets or regions with inconsistent connectivity.

5. Proactive Churn Prediction and Retention

Losing users is more expensive than acquiring new ones, and often, completely preventable.

AI tools can flag early signs of churn, such as decreased watch time, erratic logins, or skipped content. With this insight, your platform can automatically trigger personalized retention campaigns, like special offers, content nudges, or feedback requests.

By integrating churn prediction into your OTT platform development strategy, you're not just reacting to problems — you're preventing them before they happen.

6. Content Moderation and Compliance at Scale

For platforms hosting user-generated content, regional libraries, or multilingual shows, AI simplifies content moderation — a task that would be nearly impossible at scale with human reviewers alone.

AI can scan and flag:

  • Inappropriate language, violence, or nudity
  • Subtitles and transcripts for compliance
  • Audio and visual patterns for copyright infringement

This ensures faster publishing workflows, fewer legal headaches, and a safer experience for all users, especially for global platforms operating in diverse regulatory environments.

7. Voice Search and Smarter Discovery Interfaces

Voice-enabled search and navigation are becoming common in smart TVs, mobile apps, and connected devices, and AI is what makes it work well.

Using natural language processing, AI allows users to:

  • Search by mood, genre, or theme (“play something funny”)
  • Get context-aware suggestions
  • Enjoy hands-free, frictionless browsing

Integrating AI-powered voice search during OTT app development makes your platform more accessible, especially for users in multilingual or low-literacy markets, helping you reach a broader audience with less friction.

Wrapping up: The Smartest OTT Platforms Will Win

In the race to dominate digital streaming, AI is no longer a luxury — it's a necessity. Whether you’re building a new OTT app from scratch or scaling an existing platform, AI offers a competitive edge in nearly every aspect: content strategy, user experience, monetization, and retention.

For media and entertainment businesses, embracing AI in OTT app development isn’t just about tech — it’s about survival, growth, and future-proofing your brand.

Now is the time to act. The companies that build smarter OTT platforms today will lead the entertainment industry tomorrow.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


I am Anita Shah, project coordinator at XongoLab Technologies LLP, a leading mobile app development company. As a hobby, I like to write and share my knowledge through content marketing.

© Copyright nasscom. All Rights Reserved.