How to make better profits by subscribing to a video on demand platform
SVOD is subscription video on demand. Similar to traditional pay TV packages, SVOD allows consumers to access an entire catalog of content for a fixed rate, usually on a monthly basis. In general, it’s an “all-you-can-eat” buffet. Subscribers can consume as much ad-free content as they need – as long as they continue to pay for their subscription.
With no locked-in contracts and value for money, SVOD is by far the most profitable monetization model and represents the largest segment of the OTT market. In fact, SVoD is used by the biggest players in the streaming industry, including Netflix, Hulu and Amazon Prime Video, as well as new entrants such as Apple TV+, Disney+ and HBO.
Competitive Markets for SVOD Businesses
Viewers are turning away from cable and traditional providers and turning to SVoD services. This trend has made the SVoD market highly competitive, with many players. Some of the competitive advantages of SVoD over the traditional TV experience are
- More personalized content: SVoD allows consumers to pay for only the services they want. SVoD is a great solution for companies with a loyal audience that is willing to pay.
- Avoid annoying ad interruptions: SVoD service providers receive revenue directly from consumers without consulting or selling to advertisers.
- Leverage OTT platforms: SVoD businesses can leverage Roku, Apple TV, Amazon Fire TV and other OTT platforms to eliminate the need for pay-TV set-top boxes and improve the accessibility of their content.
When is a streaming business profitable via SVOD?
There are absolutely no hard and fast rules when it comes to profiting from streaming services. OTT is a fairly new technology and market player, and they have now achieved great success by initially trying out their business model before directing their revenue streams. When adopting SVOD
- you have a large library of content at your disposal
- Your model is specific to a particular niche
- you are ready to invest in original/exclusive content
- Willing to spend money to acquire new users and retain existing ones
- Can offer free trials to engage your audience
- You will constantly adapt content based on audience-driven behavior
- Accept flexible plans
- you are looking for recurring passive revenue streams
Benefits of adopting SVOD
- Viewers pay recurring fees on a monthly or annual basis without having to update their video subscription platform from time to time. This ensures that you, as the service owner, are guaranteed a regular revenue stream for as long as your subscribers continue to pay.
- SVOD services typically tend to invest in original content to retain customers, and because this content is exclusive to the VOD platform, there are virtually no pricing restrictions for business owners. The pricing window is very large and can be changed at any time based on the value of the content provided.
- The facts and figures consistently prove that subscription-based services attract a larger audience than any other pricing model. In addition, with the unprecedented increase in popularity of SVOD models, this is an absolute must for businesses to adopt in order to reach a broader audience.
The launch of VOD services opens up a world of opportunity. As the popularity of streaming media continues to soar, now is the time to act. Business models may change as the industry grows and increasing competition heats up the market. But one thing is certain – viewers will continue to pay for compelling, high-quality content. Xmediatv can be contacted at