SVOD: Everything to Know About Subscription Video On Demand

Video content has many purposes in the business world. It is primarily used in ads and content marketing strategies, but video content can be used as a product.

You can sell mini-films, tutorials, lessons, webinars, and other videos for on-demand consumption. There are a few ways to monetize video-on-demand services, and SVOD is among the most popular monetized video streaming service models. SVOD platforms use subscription fee-based pricing models to monetize video content. 

Today, we will talk about SVOD, the best SVOD models, and other popular monetization strategies that can help you generate a new revenue stream. We’ll also discuss what a subscription service is, who should use it, and how to set up the best SVOD model for your needs.

As video streaming becomes increasingly popular, the options for monetizing video content become broader. Many people automatically think about using YouTube and its ad-based VOD structure when they consider monetizing their content, but this is not the only option.

Each video monetization model has its individual purpose. That means they’ll be consumed differently and, in turn, monetized differently. Learning about the different business models available can help you generate more revenue through the right monetization strategy and even design your own hybrid revenue model that best suits your needs. 

There are three ways to monetize your video: SVOD, TVOD, and AVOD.

SVOD

SVOD stands for “subscription video on demand” and is used to provide on-demand access on a subscription basis.

With SVOD, viewers pay for limited or unlimited-time subscription services that typically range from monthly to annually. In return for this fixed subscription fee, SVOD providers give timely access to a set video package.  

Subscription video on demand is a type of VOD service. While many online services have a tiered pricing model, The SVOD market has recently increased in popularity. This upsurge is because of the variety of flexible monetization options it provides broadcasters for their video content. 

The SVOD business model makes it easier to retain customers by letting them choose the right monetization model. Broadcasters manage hosting costs by granting new users permanent access to their content library for a monthly fee. Take Apple TV and Amazon’s Prime Video, for example; you get unlimited access to their entire catalog, across multiple devices in exchange for a small fee. 

Since viewers can cancel anytime, they feel more confident purchasing multiple subscriptions from various SVOD providers. Depending on the amount of content you have to provide, the subscription agreement can be as little as one day or even greater than a year. Many SVOD and VOD services also offer free trials to magnetize new users. Apple TV, Netflix, and Sky Box Office are just a few examples of how successful the SVOD monetization model can be. 

Many SVOD models sign a subscription agreement with viewers that lets viewers watch content on multiple devices. That’s how SVOD platforms help broadcasters reach a wider audience while maintaining high video quality and impact. 

TVOD

Transactional video on demand (TVOD) is a pay-per-view pricing model. You can think of transactional video on demand as the opposite of the SVOD model. Audiences pay a recurring fee on a pay-per-view basis rather than the SVOD pricing model of charging a fixed subscription fee. 

Transactional video on demand is the video monetization model that lets users either pay for a set number of views, or download and own a copy of video content and view it any time they want indefinitely. Transitional video steaming is the right video monetization model for broadcasters that wish to charge a fee for each viewing of their most exclusive content.

Amazon Prime Video, Google Play, and Apple iTunes are three popular TVOD services.

AVOD

Advertisement-based video on demand (AVOD) is a common video monetization method. These video-on-demand platforms earn through advertisements. Viewers access free content after viewing a short advertising video before they start streaming content.

In such advertising-based video-on-demand revenue models, broadcasters make money from ad revenue. Viewers can access video content without paying any monthly subscription or other recurring fees. Advertising-based video streaming is a little different from television, but a great example is commercials that interrupt your show. Advertisers pay the channels to show their ads to viewers. 

One drawback of advertising-based video streaming is that making viewers watch ads that are repetitive and long can negatively affect their viewing experience. That also explains why audiences no longer seem to prefer this ad-based model. 

Like this difference in the pricing models, AVOD platforms differ from SVOD platforms. Since the content is free, the viewer base is mainstream, so it’s harder to reach your target audience and stand out for most broadcasters. Youtube uses this monetization technique. However, if you want to monetize your videos on Youtube with ads, your profile and content must meet a certain criterion.

What is SVOD?

SVOD stands for subscription video on demand and is one of the most popular video monetization business models for premium content. 

Subscription video on demand (SVOD) is exactly what it sounds like. Viewers pay a subscription fee to access your video content on demand.

More than one in three broadcasters currently use subscription models to monetize their content. 

You’re likely familiar with platforms like Netflix, HBO Max, Hulu, and Disney+. You pay a monthly or annual fee and get access to any shows or movies they offer.

These are pretty large-scale SVOD services, but they clearly show how SVOD providers operate.

You can create an SVOD service with the help of an advanced video hosting platform. Software like this will allow you to stream video live and on-demand directly on your site.

SVOD services are quite hot at the moment and are only getting hotter. Business Insider reports that even though many people are already using SVOD services, many are willing to expand their budgets to invest in additional SVOD services.

Hybrid Revenue Models

Thanks to all the revenue models available to media companies these days, they no longer adhere to just one monetization model for their premium video content. Most VOD platforms prefer to use a hybrid revenue model to generate an ongoing revenue stream while still giving some free access to users. This revenue model combines the ad-based model [AVOD] and SVOD subscription video-on-demand model. 

One example of this monetization model is Amazon Prime Video. The entire video library can be accessed through their subscriptions, but there are additional charges if a user wants to stream the latest releases.  

When to Monetize with SVOD

Monetizing video content with SVOD is a great option for many, but it is not a one-size-fits-all deal.

You’d use an SVOD approach when broadcasting a body of content your audience would want to access multiple times. 

Depending on the price and length of the subscription, regular consumption could be defined as streaming your videos once a day or a couple of times a month.

There are a few general types of content that work well with SVOD.

1. Live Entertainment

Typically, films and television series are the most popular types of content on SVOD entertainment platforms, but the options are much broader.

Did you know that nearly 5 million people attend virtual music festivals annually?

Since the coronavirus spread across the world this spring, streaming different types of videos for entertainment from home has become even more popular.

People stream mini-concerts, “open-mic nights,” poetry readings, and more. Entertainers who would typically go on tour can create online series where they broadcast their performances. Depending on how these series are set up, SVOD is certainly an option.

2. Exercise and Wellness

Also, due to the billions of people stuck in their homes due to the coronavirus, exercise and workout videos are premium content for SVOD-based streaming services. There has been an enormous boom in SVOD workout platforms.

You can create a massive arsenal of workouts that viewers can do from the comfort of their homes.

It’s an excellent alternative for personal trainers, studios, and gyms that usually host in-person sessions.

Even if you aren’t forced to stay inside because of a pandemic or other natural disaster, moving your fitness classes onto an SVOD platform has perks. It is a fantastic way to reach more clients since the internet allows people worldwide to attend classes.

3. Live Streaming Sports

Live streaming sports technically fall under entertainment, but watching sporting events is slightly different from watching a show or film on TV channels.

You can offer seasonal subscriptions to watch your team’s games or matches on demand or live. Media companies can grow their video business by adding value to the subscription package. Offering audiences high-quality streaming from mobile apps in addition to streaming platforms is a great way to magnetize more loyal subscribers. 

Creating a small SVOD is particularly useful for sporting teams that don’t get air time on ESPN, NBC Sports, and the other big sports television networks but still have a loyal fanbase. 

However, it is also possible to create an ESPN-grade sports network with OVPs like Mslive.

4. Online Education and e-Learning

The birth of informal education has allowed people to both teach and receive information in a brand new way. Gurus, tutors, and other types of educators can create content and make it available on their own VOD platforms. 

Independent educators can monetize their materials with SVOD. 

Traditional education organizations—including universities, grade schools, and trade schools—would not typically use SVOD monetization techniques since their content is funded in another way.

Using SVOD with an Online Video Platform

SVOD is not a particular software or tool. It is a VOD platform that you create. It is where your subscribers access your content. You use an online video platform—also called a video hosting platform—to set up your SVOD.

When choosing an online video platform, there are two very important things to consider. You want to make sure that your OVP is equipped with proper monetization capabilities and streaming technology.

In order to monetize your VOD with subscriptions, you’ll need secure paywalls. In order to make your videos most easily accessible for your paying customers, you’ll also need a streaming solution that uses OTT technology.

Let’s take a look at how these two things come into play.

Paywall for VOD Monetization

When choosing an online video platform to set up SVOD, you want to make sure it has secure paywall capabilities.

Security is key when it comes to using SVOD. You want to choose an online hosting platform that supports both secure video upload and top of the line cybersecurity features so that your content is safe and your users’ sensitive information stays out of the wrong hands.

OTT Technology for SVOD Streaming

Technically, SVOD has been around since the days of cable and satellite when television providers had “On Demand.” Some on-demand shows were truly subscription-based, and others were pay-per-view.

However, over-the-top (OTT) technology made SVOD so popular and easily accessible. OTT allows broadcasters to bypass cable, satellite, and other traditional pay tv packages and streaming methods. It is made possible by the internet.

The power to stream over the internet allows your viewers to stream wherever they go. VOD and OTT are a dynamic duo.

In addition to VOD, you can also monetize live streams with OTT technology. Subscription monetization works with live streaming, too.

Online Video Platforms with SVOD Capabilities

There are so many amazing online video platforms (OVPs) on the market, but only a select few have powerful monetization features.

We have sorted through a few of the most popular OVPs and pulled out the ones with SVOD monetization capabilities