18 October, 2021

SVOD Vs AVOD – Which is The Best Monetization Model For VOD Business?

The internet has revolutionized how we access video and audio content. Gone are the days of switching between TV channels; now, we’re able to choose what we want to watch from a catalogued list. The umbrella term for this is VOD (video on demand) and there are multiple revenue models for businesses to choose from if they go down this route. AVOD (Advertising Video on Demand) and SVOD (Subscription Video on Demand) are the top two.

2020 was the year of growth for AVOD in particular, as the market became more competitive, monthly costs per user dropped lower and lower, and more avenues for revenue generation were sought out. For SVOD advertising, on the other hand, the market still remains ripe as ever, with its size projected to reach USD 32.3 billion by 2025.

Here’s all you need to know about these popular VOD platform and what to choose for your platform.

What is SVOD (Subscription Video On Demand)?

Subscription video on demand allows users to pay a regular fee and, in return, receive unlimited access to a massive catalogue of audio or video content for that duration. This OTT video monetization model is quite similar to traditional TV packages, but the content is much more curated and can be categorized for niche industries or general audiences.

Benefits of Subscription Video On Demand Model

1. Predictable and Recurring Revenue

Having fixed rates per user per month or year allows OTT platforms to maintain a stable and predictable amount of revenue each month.

2. Better Profit Margins

Compared to other OTT video monetization models, SVOD allows for higher profit margins with just a few thousand subscribers.

3. Better Customer Base

By create a subscriptions video platforms are able to maintain a better and more curated audience base than if they were to present content for free or using other OTT platform revenue models.

Choose The SVOD Platform Route if…

You want a curated customer base with predictable revenue, and would prefer to keep your platform ad-free and completely in your control.

Why is SVOD the most profitable VOD model?

Businesses choosing SVOD make money by offering packaged content in monthly, quarterly or annual subscriptions charging their customers a recurring fee. 

When we compare the difference between AVOD vs SVOD, businesses mostly work on membership plans with varied conceptualization. Giant media business video preneurs  include Netflix, HBO Max, Disney +, Hulu, etc. 

Stats indicate, some of the top video entrepreneurs implement subscription-based models as it helps to generate income of an average of $5,800 each month. 

How does SVOD attract users, and how can they watch it on any device without paying extra?

The really best part that catches attention in SVOD is, viewers choosing this package can watch premium material at their leisure anywhere, anytime. They are no longer restricted by programmed schedules or waiting for a show to record to their smart box.

Since these unique content pieces can be accessed with wireless internet connectivity, the user is not at all restricted to a particular device.

And, most importantly, the best plus factor is, there is no extra fee for your audience to watch on any type of device.

All of these play a major role in cost factors for your viewers as subscription VODs can be viewed at your own convenience, much cheaper than cable or satellite TV packages. 

SVOD Pricing Model

Once you decide to use an SVOD monetization approach for your video streaming business, the next step is to figure out what pricing plans you’ll use.

There are a number of different subscription-based video on demand pricing structures available. There are many but you can settle on one of the three options below:

  • Explore options with Free trial

A free trial is a short period of time during which a user can view your full video library for free. A good percentage of users will decide to sign up after checking your VOD content and experience it to decide on how fascinating it is! 

  • Lure Customers with Freemium 

Freemium, on the other hand, refers to availability of your VOD assets that consumers can access for as long as they desire for no charge using this model. Despite having minimal rise of profitability, this can also serve to gather an increased user-base. 

  • Capitalize on Selective Access Model

This model can be an advantage to you once your business crosses the budding stage. You can apply it in varied combinations like offer particular views or downloads a month, particular episode access, etc. For the start you can keep it simple.

AVOD Vs SVOD Monetization

What is AVOD (Advertising Video On Demand)?

AVOD refers to ad-based video on demand. In this OTT monetization method, video content can be accessed by users for free. However, like broadcast television, they will need to sit through targeted ads to be able to access that content, and this becomes the revenue stream for the platform owner. YouTube is by far the best known example of AVOD advertising, where the revenue from ads are used to offset the costs of production, hosting and delivery.

Benefits of Ad-supported Video On Demand Monetization Model

1. Unlimited Videos For Free

Users can watch as many videos as they want at a stretch without a fee, as long as they sit through the ads.

2. Vast Reach

Video viewing platforms have vast and diverse audiences that companies can tap into with targeted ads.

3. Democratic Viewership

The absence of a regular fee ensures that all video content can be accessed by anyone anywhere, and this increases the reach and popularity of your platform exponentially.

Opt For an AVOD Platform if..

You’d like to promise free video and audio content to your users without creating OTT subscription models, but also want to make steady revenues off the back of such content.

Choosing Between AVOD and SVOD

Both SVOD and advertising-supported video on demand are positive avenues for revenue generation. That said, your choice between the two would depend on your VOD business model, and the following factors:

  • Type of content
  • Advertising landscape
  • Audience demographics
  • Content fees and licenses
  • Investments in platform and content management systems
  • Financial goals per month and year

The Importance of Choosing The Right VOD Revenue Model

Revenue models also need to work perfectly with a multi-device, web-powered ecosystem that will be accessed by thousands of people all at once. As a result, they need to be secure and confidential and immediately unlock access for users upon payment. Delays and lags in subscription video on demand platform providers can lead to a high customer churn rate.

The perks of choosing monetization

Regardless of whether you’re finally choosing advertising video on demand or SVOD advertising, there are multiple perks that choosing monetization in general offer:

  1. Steady Revenue: Monetization plans ensure steady revenue streams for operational and maintenance costs along with profits
  2. Secure Content: Adding paywalls or ads ensure content is securely watched and can’t be pirated
  3. Privacy: Subscriptions ensure exclusivity and privacy for users, who can customize their watchlist as per their discretion
  4. Flexible Monetization: OTT platform providers can vary their monetization plans depending on the type of content, to keep generic content free and premium content secure.

How VOD Helps in Generating Revenues?

Firstly, the demand for video on demand is all-time high! So you’d be stepping into a very lucrative industry with the help of world’s best video on demand solution providers. Many businesses have built their brands as a top successful VOD platform, using steady revenues also learn what is vod. This is achieved by incorporating various monetization models to fund their operations. It is flexible and scalable enough to support thousands of content pieces with millions of users at the same time.

Conclusion

Building or creating the ideal video monetization platform ensures you’re able to provide quality content to a curated set of users while also maintaining steady revenue and building your successes.

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Frequently Asked Questions(FAQ)

At present, businesses implement a combination of monetization models leveraging on both sides of the coin! Take an example of an audience paying a subscription package of an array of collective prime content pieces. This is given along with additional fee of non-skippable ads, minting good money from both.

SVOD stands for subscription VOD or subscription video on-demand. This video service allows users to access the entire collection of videos in the library for a limited period of time. This flexible model is gained with recurring payments where your consumers can be allowed to watch videos with any device having strong internet connectivity.

When we look into the Ad-based video-on-demand model or AVOD, you can increase your revenue based on the number of views collected via instream ads. On the contrary, SVOD provides recurring money time & again with added benefits. If both are in versus to each other, this is the major difference to count, even though having many factors.

When it comes to the video streaming business, these are the crucial monetization models that have been supportive throughout. Content providers  can provide their consumers with monthly, quarterly or annual subscriptions with popular streaming model. At the same time, get your numerous content libraries supported with instream ads, companion ads, skippable/ non skippable ads to double your streaming revenue.

Deepika

Deepika is a digital marketing enthusiast who is keen on learning more strategies & excels in the new digital trends. She has interest in OTT & loves to explore the streaming world.

44 Comments

  1. Shahzad Reply

    Hi…
    I need to make money in my streaming video on zoom application including video live streaming, workout live streaming to connect the user with our experts’ clients and get more revenue through svod, avod model. we need to customize it. could you please send me all the details along with your pricing? And finally, we need a video on demand solution that’s why we will reach you

  2. Ana Reply

    Hello, we have a collection of movie and movie-making studios with multiple locations, we like to move online and I want to make money with monetization model of svod, avod. We would like to implement a customized vod app and streaming platform services able to track progress through and allow the consumer & the service provider to video and transact. We are launching this month and we would greatly appreciate your input. Many thanks, Ana

  3. Agboola Reply

    Greetings, Still no response from anyone about my request. Please I would like to know if I can make money for my youtube channel studio to create more revenue on my own live video from the subscribers and if I can get a vod platform for session plan created for my online video on demand website, although we will be using this company for the live class, whiteboard screen sharing, video recording, etc…please get back to me asap

    1. Masi Reply

      Hello.. Firstly, we would like to apologize for keeping you waiting for a long time. We deeply appreciate it. You can let us have your contact details as our technical team would get in touch with you in a jiffy to provide more inputs to build an video platform & deliver live class sessions, workshop capture, etc.

  4. Aedo Reply

    Hi, we are evaluating the make money video on demand to integrate our app, its works on actions in entertainemnt, sports, and workshop, I would like to know-how are the values ​​and business programs work. I need to make money with avod, svod monetization model. .

  5. Derek Reply

    I plan to create a video on demand platform that channels can do live-stream their video online, I like to make money with monetization options like avod, svod in the industry online. I need to use a third-party service that can make this casework and I’m looking for a vod platform. VPlayed is fit for my requirements?

    1. Masi Reply

      Yes definitely! Without any doubts, you can build a whitelabel VOD platform with customized functionalities along with niche requirements like live streaming, third-party integration, monetization options, etc. To facilitate with an array of feature-rich platform, you can check wide opportunities to monetize at: https://www.vplayed.com/

  6. Smriti Reply

    I would like to create and use your VOD app for all my youtube studio and also make money with monetization models like svod, pvod for vod platform right now. Kindly let me know the pricing or packages you have

  7. Jain Reply

    I am looking to create a VOD platform for my youtube channel studio and like to make money with monetization models like svod, avod in online video. Looking forward to getting your estimate. Regards Jain

  8. Shashwat Reply

    We are the largest studio enterprise with 20 more youtube channels based out of Malaysia and we are looking for VOD platform for online video streaming also I like to know how to make money, I learnt few things from your blog as AVOD vs SVOD. We would like to know more about the pricing and other commercial details.

  9. Panigrahi Reply

    Looking to integrate a vod platform into our video streaming channel and like to make money using SVOD vs AVOD with a monetization model. Can you please provide details of how your vod platform works and make money with the monetization model and the app? Also, provide details about your pricing of the video on demand app.

  10. Clara Berry Reply

    Hello, I am contacting you on behalf of one of our customers, I would like to know some information about your vod platform’s & way to generate revenue using AVOD vs SVOD. Is it possible to know your pricing model for your solution, your hosting solution, and the order of price for about 5 million subscribers? Best regards, Clara Lê

    1. Masi Reply

      Hi clara.. Thanks for getting back to us. You can have detailed information about how to create an end-to-end budget-friendly video on demand platform with revenue generating model from our technical team of streaming expertise.

      For getting in touch you can click on https://www.vplayed.com/contact-sales.php & send-in your queries & we’ll be happy to answer them quickly.

  11. Lewis Reply

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  12. Joshua Reply

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  13. Julian Reply

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  14. Hunter Reply

    Thanks for taking the time to share about the best in avod vs svod and monetization model for video on demand business altogether. It’s much appreciated

  15. Carlos Reply

    Really great breakdown of SVOD Vs AVOD, & its monetization options and revenue model methods. Thanks for sharing.

  16. Walter Reply

    I would like to use your SVOD, AVOD revenue model service for my VOD business model. Kindly let me know the pricing or packages you have.

  17. Declan Reply

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  21. oliver Reply

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  22. Henry Reply

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  24. William Reply

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  25. Samuel Reply

    I was looking to generate revenue from my VOD business platform, and I am glad to come here! Thanks for sharing such information with us like the meaning of SVOD, AVOD.

  26. James Reply

    Very detailed analysis on the avod, svod revenue model service. Awesome list! Thanks for sharing with us.

  27. Rithika Singh Reply

    Hi, my Question, the mode of the AVOD, SVOD revenue model is only for the movie realizing app or it will work for general video streaming services?
    Thanks

  28. Ibrahim Reply

    Cool. Thanks for taking the time to put what is avod, stands for, meaning altogether. It’s much appreciated.

  29. Monisha Reply

    It’s a really great breakdown of all the differences in the best AVOD, SVOD for VOD business. Thanks!

  30. Richard Branson Reply

    Really great breakdown of AVOD vs SVOD steps to choose the best revenue model for the VOD business model. Thanks for sharing.

  31. Isaac Reply

    Very detailed analysis on the video on demand platforms SVOA, AVOD monetization. Awesome list! Thanks for sharing with us.

  32. Harrison Reply

    It was a very insightful article and clearly explains VOD streaming and SVOD, AVOD monetization. Thank you

  33. Jack Reply

    Helpful information. Stunned by the level of details about SVOD, AVOD monetization, which available in VOD Software.

  34. Noah Reply

    Really great breakdown of all the differences in SVOD vs AVOD monetization services. Thanks for sharing information about video on demand solutions.

  35. Meryem Reply

    Thanks for taking the time to put this all together at SVOD and AVOD monetization model. It’s much appreciated to know more about vod platform.

  36. Sivarsan Reply

    What is the revenue what I will earn through AVOD? how much will I earn approx. per one ad Video view?

  37. Joyce Reply

    Hi, This is Joyce from Tech-code Class. We have creating training videos and uploading on our site to make it accessible for everyone. After the pandemic situation, Planning to move complete digital platform. I’ll send you the requirements to build e-learning platform with subscription video on demand services. Kindly update me asap.

    Thanks
    Joyce

  38. Andrew Reply

    Looking for a solution to monetize our video content with multiple models. Both subscription & advertisement will be fine for us to target premium and free users like YouTube. Can we have a call regarding this implementation of ott video monetization strategy.

  39. Stephen Reply

    Hey, We are one of the major leader in streaming industry. Currently Offering free content to the users form the vast region, Now planned to monetize our video content with perfect model. Can you please suggest us to choose profitable ott video monetization strategy for our platform.

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