SVOD

SVOD – Best Revenue Model, Market Demand, Advantage & Pricing Plans

Streaming services offer various revenue models and you can earn pretty well through multiple revenue models that can help you with instant income generation. But you need to know which is the most sustainable model in your niche industry and how consistent is the revenue model for your OTT business in the foreseeable future? 

The subscription-based model is the most rewarding model considering a long-term recurring revenue stream. Nevertheless, Ad-based and pay-per-view income styles are also considerable rewarding models. 

What is SVOD?

SVOD or the Subscription Video on Demand is a revenue model where the entire content library is accessible with a monthly or annual fee. These subscription plans are renewed automatically until the user opted out from the subscription plan. This revenue model is famous among people as they can cancel at any time and are not bound to any contractual agreement. They can get to have a vast range of content available to consume on a paid plan that holds a great value for money.

SVOD

Demand For SVOD Monetization

SVOD

Market giants like Netflix, Amazon Prime, Hulu, Disney +, and Apple TV have all adopted the SVOD model. 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. 

SVOD VS AVOD VS TVOD

Monetization Models

SVOD  

(Subscription Video on Demand)

AVOD  

(Ad-Supported Video on Demand)

TVOD 

(Transactional Video on Demand)

Revenue Generation Style

Recurring fee according to monthly/ yearly plans

Payment from advertisers according to views

Income through buy/rent of the content

Content Access

Unlimited access to entire content library

Free content 

Pay-per-view basis

Duration of Access

As long as the subscription is paid

As long as the user prefers

Limited window of 24/48 hrs for rented videos 

Forever access for videos that are purchased

Suitable for?

Having huge content libraries

For a massive audience base

For premium/ exclusive/ seasonal content

Ads

Ad-free experience

Skippable/ Non-Skippable Ads 

Premium users can choose to remove ads

Can be implemented by ad-supported platforms as well

Market Players

Netflix, Hulu, Amazon Prime Video, Disney+, HBO Max

YouTube, Crackle, Pluto TV

Apple iTunes, Google Play

When Can You Adopt SVOD Monetization Model for your Streaming Business?

OTT is a rather new technology and market players experiment with their business models before channelizing their revenue streams. However, it is suggested to 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 of SVOD Model

The success stories of streaming services who have adopted SVOD as their business model is well known and some of the market biggies are: 

Netflix

An OTT giant with the largest subscriber base, Netflix has surpassed 203 million active subscribers worldwide.

Amazon Prime Video

A hybrid business model (TVOD+SVOD), Amazon Prime has also hit the 200 million subscriber count.

Disney+

With more than 100 million subscribers, Disney+ is climbing the success ladder pretty fast, showcasing content variety at its best across 59 countries.

Hulu

Hosting thousands of movies & TV shows, Hulu is growing steadily with its 39 million paying subscribers. 

HBO Max

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.

Advantages of SVOD Monetization

Adopting SVOD over other pricing models definitely has an edge in profit-making. Although, it is also critical to consider 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. Following are some prime advantages of the SVOD business model: 

• Recurring Revenues

As we already shared that SVOD model recurring revenues because audiences have to pay a recurring fee on a monthly or yearly basis to renew their subscription and access the content library. Therefore, owners have a guaranteed regular income stream as long as users continue to pay. 

• Loyal Subscribers

SVOD models are highly suitable, profitable, and offer niche-specific content. Hence, you need to earn a devoted audience who sticks with you for a long period of time. Your audience is supposed to be willing to pay on a recurring basis to consume content other than consuming free content through the AVOD model. 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 Plans

SVOD services usually invest in original content to retain customers and offer exclusive content to their dedicated loyal audience. For exclusive and original content, platforms offer different plans from basic to advance depending on various factors. The price of the content mainly depends on average revenue per user (ARPU), churn rate, etc. 

• Audience Favorite

Its also proven through various facts and figures that audiences prefer and like subscription-based service more than any other pricing model. Ads while watching the favorite content, annoy the audience a lot and similarly, people don’t like to pay rent or buy for every single time they want to consume content. Therefore, with the popularity of SVOD models increasing like never before, it is definitely something that businesses must adapt to reach a wider audience base. 

Creating Subscription Plans With Vodlix

Monetizing your content with Vodlix 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.

  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. 

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 monetizing their content with this popular revenue model, Vodlix 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.