Today we will see exactly what the meaning of SVOD is and what it is for since there is no doubt that digital platforms have changed the way of viewing videos. Currently there are several options, for example: live broadcasts, paying a monthly fee to trial run a subscription or, if you prefer, download the content to view later, giving way to a series of concepts and strategies.
When talking about transmission of content at stake, a series of acronyms, such as SVOD, AVOD, TVOD, among others, that you need to know to select a type of platform and use an appropriate monetization strategy.
Meaning of SVOD
SVOD is the acronym for Subscription Video on Demand, which refers to video transmission services, with monthly or annual subscription plans offered by a company. In other words, users pay a fee to access this service, which is very flexible, since generally these users are not bound by a contract.
The providers of this service face the constant challenge of retaining their followers. Some of the main companies that use this type of platform are: Netflix, Amazon Prime, Hulu, HBO Max, Disney +, among others.
It is important that you know other terms and those that we have already talked about previously as AVOD acronym for Video on Demand before delving a little more into SVOD services. In this sense, AVOD is a type of free platform for users, like open television, with the display of advertisements to access.
The income is used by the companies for maintenance and production expenses. Platforms such as YouTube, Daily Motion, among others, use this business model.
Another important term is TVOD (Transactional Video on Demand), also known as Pay-Per-View and which refers to a system that companies use to generate income by renting or selling individual videos. Platforms such as iTunes and Amazon Instant Video are examples of this model.
The FAST concept is not new. AVOD services have been around for a number of years and are expected to continue to grow for several more years. But FAST services offer ad-supported video content using dynamically inserted ads to provide linear channels to connected devices. Pluto TV, Xumo or Tubi are good examples of FAST services.
What is SVOD for?
We have already reviewed the meaning of these basic concepts, now let’s review their usefulness, but first it is vital that you know that these platforms are not exclusive, there are creative ways to combine them to suit a monetization strategy, for example, Disney + is known mainly as a subscription platform (SVOD), however, it also provides some movies with an option to buy (TVOD).
Similarly, once the platform is selected, it is vital that you consider the monetization strategy, since each model has a different value. To monetize under the SVOD platform, keep the following aspects in mind:
- Offers continuous content that does not expire in time.
- Provides flexibility to join or leave the platform.
- Post new content on a regular basis.
- Tailor content to a specific audience. Subscribers will pay for material they can’t get elsewhere.
- Offers live broadcasts.
- Notify your subscribers of new videos.
Building an audience can be tricky, but it must revolve around a number of followers, whose content works better than any AVOD platform.
Companies can also take advantage of the opportunity offered by OTT platforms (“Over The Top”, videos and transmission media provided over the Internet without subscription) such as Roku, Apple TV, among others, to make their content more accessible.
The growing demand for OTT content frees people from cable contracts, broadcast schedules, geographic restrictions, among others, changing the way they watch videos.
SVOD services are a highly competitive growth market, so it is vital that you evaluate and build your audience. At JUMP Data-driven Video we will advise you to promote your OTT business model.