Last fall CBS and HBO announced they were getting into the over-the-top (OTT) TV business, delivering audio, video and other media directly to consumers over the Internet. CBS and HBO are each offering stand-alone TV subscriptions to engage and retain subscribers. CBS’s product, CBS All Access, offers subscribers video on-demand and live streaming of CBS shows, including 5,000 archived episodes, for $5.99 a month. It will also offer exclusive access to subscribers.

In a similar move, HBO unveiled HBO Go as a stand-alone product, so subscribers can ditch cable to see their favorite episodes of Game of Thrones and Girls anywhere, anytime. Details including pricing, programs and a launch date are still unknown.

Among the first to hit the OTT market is DISH’s Sling TV service, launched Feb. 9, which offers a package of 12 TV channels including ESPN, CNN, AMC and the Food Network for $20 a month. For an additional $5 a month, DISH subscribers can get a “sports extra” package which includes ESPNEWS, ESPNU and Universal Sports, among other channels.

Not to be outdone, Apple is considering its own OTT TV subscription service too. According to a recent article on Re/code, Apple would bundle existing programs and networks and sell the line-up directly to consumers over the Web. Talks with television programmers and content owners are in the preliminary stages, however, so details, pricing and timing have not been determined.

Sony is also trying to get its share of the OTT market with its new Web-based TV service called PlayStation Vue, expected to launch by the end of the first quarter. Similar to a cable subscription, PlayStation Vue will feature 75 channels, including CBS, NBC, Fox, USA, Discovery Channel, Nickelodeon, TV Land and more, according to Gigaom. Sony has not yet announced pricing or a firm launch date yet.

Insider Analysis:

With such major players entering the OTT market, it is clear the market is ripe for change. Consumers – particularly Millennials – want choices, and they want to binge watch their favorite shows how, when and where they want. Over-the-top TV subscriptions will allow consumers to pick their packages and their price point to see the shows they want without having to buy huge cable bundles they don’t need.

The key to the OTT providers’ success, however, will be differentiation and customer loyalty and retention. The OTT providers will need to offer the right packages to their target market along with exclusive benefits and perks for being a subscriber – and they need to make it easy. With so many options soon to be available, consumers will gravitate toward the provider that makes signing up and using the OTT TV service simple.