What is SVOD? – Market Demand, Benefits, Pricing, & Plans

To earn a quick buck from your streaming service isn’t that big a deal, after all. In fact, there are a good number of revenue models to help you with this instant income generation. But, how consistent is this for your OTT business? Does this help you sustain yourself in your niche industry in the foreseeable future? 

Ad-based and pay-per-view income styles are of course rewarding; however, subscription is the undisputed winner when discussing a long-time recurring revenue stream. 

What is SVOD?

SVOD or the Subscription Video on Demand is a means of bringing in earnings by providing your audiences access to your entire content library, in most cases through a monthly or annual fee. These subscription plans are automatically renewed until opted out by the user. Consider it getting paid on a month-on-month or yearly basis for the entire collection of audio or video content you own. 

What do people love the most about SVOD?

1) It typically puts no pressure on the user as the subscription can be canceled at any time and not bound to any contractual agreement. 

2) Audiences believe subscriptions hold a great value for money considering the wide range of content available for consumption. 

The Rising Demand for SVOD Monetization 

Over the years, the now-market giants like Netflix, Amazon Prime, Hulu, Disney +, and Apple TV have all adopted the SVOD model for some very good reasons like the ones mentioned above. Today, there is absolutely no turning back for them as their demand is only advancing with every passing day. Holding the maximum market share, subscription-based services are expected to generate a whopping USD 71,237 million in revenue by the end of 2021 while Statista has projected the same to surpass USD 108,306 million five years from now. And as always, the United States heads the game with most subscription users from the country. 

How Is SVOD Different From Other Monetization Models?

While every revenue model is different and has its own pros and cons, subscription-based platforms have an edge over other monetization styles in strategically being highly profitable and helping OTT services sustain themselves in the industry with very few hiccups. 

Monetization ModelsSVOD  

 

(Subscription Video on Demand)

AVOD  

 

(Ad-Supported Video on Demand)

TVOD 

 

(Transactional Video on Demand)

Revenue Generation StyleSmall recurring fee based on monthly/ yearly plansPayment from advertisers depending on viewsIncome through buy/rent option
Content AccessUnlimited access to entire catalog of contentFree content Pay-per-view basis
Duration of AccessAs long as the subscription is paidAs long as the user prefersLimited window of 24/48 hrs for rented videos 

 

Forever access for videos that are purchased

Who can adopt? Solutions with huge content librariesSolutions with a massive audience baseSolutions with premium/ exclusive/ seasonal content
AdsAd-free experienceSkippable/ Non-Skippable Ads 

 

Premium users can choose to remove ads

Can be implemented by ad-supported platforms as well
Market PlayersNetflix, Hulu, Amazon Prime Video, Disney+, HBO MaxYouTube,Crackle, Pluto TVApple iTunes, Google Play

When Can a Streaming Business Monetize with SVOD?

There is definitely no hard and fast rule when it comes to monetizing your streaming service. OTT is a rather new technology and market players who have made it big now initially did experiment with their business models before channelizing their revenue streams. Adopt SVOD when

  • You have a large content library at your disposal
  • Your model is specific to a particular niche
  • Ready to invest in original/ exclusive content from time to time
  • Willing to spend in acquiring new subscribers & retain the existing ones
  • Can offer a free trial to attract viewers 
  • You will continually tweak content based on viewer-led behavior 
  • Open to flexible plans
  • You are on the lookout for a recurring passive income stream

Market Giants Who Have Mastered SVOD

The success stories of streaming services that have picked SVOD as their business model is something well known and here is a curated list of some of the market biggies. 

Netflix

Amazon Prime Video

Disney+

Hulu

HBO Max

An OTT giant with the largest subscriber base, Netflix has surpassed 203 million active subscribers worldwide.A hybrid business model (TVOD+SVOD), Amazon Prime has also hit the 200 million subscriber count.With more than 100 million subscribers, Disney+ is climbing the success ladder pretty fast, showcasing content variety at its best across 59 countries.Hosting thousands of movies & TV shows, Hulu is growing steadily with its 39 million paying subscribers. Projected to acquire around 70 million subscribers by the end of 2021, HBO is an OTT venture by the popular American cable television network of the same name.

Paywalls for SVOD Monetization

Paywall is a type of restriction set for accessing OTT platform content for free which is otherwise accessible only to paid subscribers. The most important aspect of a paywall is that it allows a user to access the content library only after the payment is complete. 

Streaming video on demand business can either choose between implementing a ‘soft paywall’ (free access to a certain amount of content is provided before prompting the user to subscribe) or a hard paywall (Users can’t watch any content without a subscription).

Many of the streaming players have integrated subscription paywalls to their platforms to protect videos from inappropriate access. You can ideally purchase a third-party paywall or invest in a streaming solution that comes with an integrated paywall, the latter being more profitable in any case. 

Benefits of Adopting SVOD

SVOD Monetization

Adopting SVOD over other pricing models definitely has an edge in profit-making. However, it is also crucial to remember that not all businesses can have the benefit of subscription plans, probably because of not owning niche content or not being able to invest in original content. 

  • Reliable Revenue for Years

As mentioned above, audiences pay a recurring fee on a month-on-month basis or annually without having to renew their video subscription platform every now and then. This ensures you as a service owner are guaranteed a regular income stream as long as users continue to pay. 

Featured article: 6 strategies to increase revenue by 200%

  • Loyal Subscribers

Since most SVOD models own niche-specific content, you’re sure to earn devoted audiences who stick with you for long unlike audiences with AVOD (More differences between SVOD vs AVOD). The more niche your content is, the more likely you are to earn audiences who’ll return to you for newer content from time to time. 

  • Pricing Freedom

SVOD services often tend to invest in original content to retain customers and because these pieces of content are exclusive to the VOD platform, there are really no pricing restrictions a business owner is bound to. The pricing window is quite large and can be altered any time depending on the value of the content offered. 

For instance, the basic Netflix plan starts from $8.99 whereas Disney+ offers monthly plans starting from $7.99. So, there is no definite rule for pricing content and it all depends on factors like average revenue per user (ARPU), churn rate, etc. 

  • Crowd Favorite

Facts and figures have always proved that subscription-based services attract more audiences than any other pricing model. Moreover, with the popularity of SVOD models increasing like never before, it is definitely something that businesses must adopt to reach a wider audience base. 

Creating Subscription Plans with CONTUS VPlayed

Monetizing your content with CONTUS VPlayed is as easy as pie considering the fact that it’s an all-inclusive streaming solution with a commendable CMS that eases your subscription journey for sizable profits. Learn the top 10 features of a content management system!

  1. Create subscription plans of your choice directly from the dashboard.
  2. Give your plan a name based on whether it is basic, standard, or premium.
  3. Decide over a weekly, monthly, or annual billing cycle.
  4. Price your plan based on market research and competitor pricing. 
  5. Mention the duration of your plan (Number of days after which you can choose to implement auto-renewal options or manually make the user subscribe once the plan expires).
  6. Set device limit-This is to restrict the number of screens a user can sign into based on the type of the plan. 
Everything About Video Monetization

Content consumption has come a long way from traditional cable/ television packages to flexible pricing models. SVOD services in specific hold a high value for money and are loved by millions of OTT audiences across the globe for the very same reason. So, to benefit content creators, publishers, distributors, and business owners with video monetization platform & their content with this popular revenue model, CONTUS VPlayed helps build a new-age subscription solution that excels on all monetary fronts. With no further thoughts, sell your content online with the most applauded income model that has ever existed and something that supports a wide range of industries including education, entertainment, sports, fitness, and religious services.

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.

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