VOD and OTT have been evolving hand in hand until now when the two terms are often thought of as interchangeable. Of course, they are not, but the fact is that today, VOD is often associated with OTT. It doesn’t matter to the end user if they refer to their service as VOD or OTT, as long as it delivers on-demand content streams over the Internet. However, for video streaming professionals, the distinction is clear – VOD is the specific service, and OTT is the channel through which it is delivered.
What is the definition of SVOD?
SVOD stands for Subscription Video on Demand. SVOD companies make money by charging customers a recurring subscription fee. In exchange, subscribers get access to a full library of videos, TV and/or movies. Most SVOD businesses use monthly or annual subscription plans, but this can vary from business to business. The SVOD business model is the most popular of the 3 models. Recurring subscriptions are a great way to maximize revenue per customer. It’s also a great system for viewers to have easy access to all of your favorite shows.
What is AVOD
AVOD helps ensure a revenue stream for content that may not generate direct or recurring revenue from customers. Companies that produce or collect large portfolios of content often utilize AVOD models. However, free content often requires trade-offs. Media companies using the AVOD model may have difficulty retaining customers, either because the perceived quality of the content is lower than that offered by SVOD or TVOD providers or because users are frustrated with commercial interruptions. AVOD may also come with unique technical hurdles to ensure that ads are displayed correctly and customized and interactive for users.
TVOD – Transactional Video-on-Demand
Using this model, consumers can pay per view purchases. This includes rentals, as well as purchasing content for permanent access. These types of purchases exist in Apple iTunes, Amazon’s Video Store and the Cineplex store. Renting or buying movies is the easiest way to consider this category.
Advantages of the SVOD service
Advantages of the SVOD service
- Increase audience engagement: SVOD services keep viewers engaged and more rewarded with exclusive original content.
- Increase revenue: By monetizing your content through the SVOD platform, you can increase your revenue streams.
- Global Reach: The SVOD platform has a global reach, so you can access a larger audience than ever before.
- Increased viewership: SVOD platforms often have high viewership, so your content can reach a larger audience than ever before.
- Easier distribution: Distributing content through the SVOD platform is often easier to manage than traditional TV broadcast or DVD sales. This makes it easier for you to get your content out there and seen by more people.
- Increased Exposure: As SVOD services become more popular, the exposure of your content increases. This helps increase the viewership and revenue of your content.
Obviously, video-on-demand and OTT services are not interchangeable. However, the dynamic increase in streaming technology makes them overlap, at least in the minds of consumers. Just like their knowledge and demand, the number of streaming service customers is growing. This, of course, will drive streaming service providers to weigh various monetization models and work harder on their customer retention tools. From where we stand, it all seems to be moving in a direction that is beneficial to customers.