As video streaming continues to grow in popularity, the opportunities for monetizing video content are rapidly expanding. While many people immediately think of YouTube and its ad-supported, Video on Demand (VOD) model when it comes to monetization, there are other options for content creators and video library owners.
Each video monetization model has its unique benefits and considerations, and each is consumed and monetized in different ways. Understanding these various business models can help you maximize revenue by choosing the right strategy, or even creating a hybrid model that best meets your needs and goals.
We’ve explored Advertising-based Video on Demand (AVOD), and Free Ad-Supported Television (FAST) in other posts, so let’s dive into the world of Subscription Video on Demand!
What is SVOD?
SVOD, or Subscription Video on Demand, gives users access to a library of content, on demand, for a set subscription fee.
SVOD has changed how people watch and pay for video content. Subscriptions are typically offered on a monthly or annual basis, with access to a library of content in exchange for the subscription fee. This model gives content creators and library owners a steady, predictable revenue stream, and provides viewers with a wide variety of high-quality video options.
Since viewers can cancel at any time, they’re more likely to subscribe to multiple services. Many SVOD platforms also offer free trials to attract new users. Services like Netflix, Disney+, and Apple TV+ have proven how successful the SVOD model can be.
The availability of the content across a user’s many devices (phones, tablets, televisions, and gaming consoles) provides content owners with access to a greater audience and more opportunities to engage that audience.
Hybrid Models
While each revenue model available to content owners has its unique benefits, they no longer have to choose one over the other. Most VOD platforms have embraced a hybrid model for monetizing their premium video content.
Some platforms have elected to offer free, or ad-supported access to some content, while also requiring a subscription to gain access to more exclusive or premium content. An example of this approach would be Amazon’s Prime Video.
Others, such as Hulu and Netflix, have opted for hybrid models that allow customers to choose between a higher subscription price for an ad-free experience, or a lower subscription tier that is supported by ads — a combination of the SVOD and AVOD models.
Benefits of Monetizing with SVOD
Stable and Predictable Revenue
The SVOD model allows content owners to enjoy a steady stream of revenue from those recurring subscription fees — a distinct advantage over the ad-supported model for content owners who know their content has an eager audience.
More control over revenue and pricing structure
With SVOD, the content owner is control, with the ability to tailor subscription plans that suit their audience’s preferences and budget. One price for everything? You can do that! Tiered pricing? Hybrid model? You get to choose the option that best serves your audience and your own revenue goals.
Greater insights
Most SVOD platforms provide volumes of valuable insights, analytics, and user data, giving content owners a powerful overview of subscribers’ viewing habits, content preferences, and engagement. Learning how to interpret this data is valuable for crafting content strategies and, in hybrid models, understanding how ad placement is affecting viewership.
What kind of content should I monetize with SVOD?
While any content can be turned into an SVOD channel, the most successful are those content creators and owners with content audiences want to access multiple times. With SVOD, regular and repeated consumption of content is the name of the game.
So what type of content works best? While it’s easy to focus on large studios and content owners such as Netflix, Disney, and Paramount, those are giant outliers in a wide world of SVOD channels.
For example, millions of viewers consume concert and music festivals virtually each year. Bands or entertainment promoters may be surprised to discover there’s a demand — even if it’s niche — from fans wanting access to those dozens of shows they’re playing each month.
Ever since the pandemic, there’s been a rise in SVOD exercise and wellness channels such as Peleton and All Out Studio, which allow viewers to get a gym-quality work out and instruction from the comfort of their own home.
Universities and minor league sports teams that may never air on ESPN (or even ESPN 8, “The Ocho”) may have a demand for their teams’ games or matches via a paid SVOD service that engages and excites their fanbase.
Online educational content, self-guided skills transfer from individual contributors and creators… the possibilities are, truly, endless. And the ability to create an SVOD channel has never been more accessible for these opportunities than it is right now.
Getting started with SVOD
SVOD channels are not tied to a single service provider, software, or toolset. SVOD is simply the term for the platform where viewers gain access to the content. To create your channel, you’ll need an Online Video and Hosting Platform (OVP).
Just as there are growing avenues for content monetization, there are new technologies and platforms springing up regularly to empower content owners in the creation of their streaming channels. Services such as Dacast, Muvi, and Uscreen make it easier than ever to get started with SVOD quickly and affordably.
Whatever OVP you choose, make sure they’re able to meet your streaming technology needs, provide clear analytics, and are equipped to help you monetize your content. Solutions that embrace OTT technology (such as the providers mentioned above) will ensure your content is available to the widest audience possible.
Prepping content for SVOD
With Time Tailor, our innovative, AI-powered software product, your content can be ready for new markets, channels, and monetization opportunities 90% faster than relying on traditional methods. Combined with the ability to save 60% or greater on editing costs, while generating more space for ad inventory (if you choose a hybrid model), or to remove existing “burned in” ads from your content library, Time Tailor’s benefits more than pay for themselves and unlock unlimited potential for your library’s earning potential.
Contact us for more information on how Time Tailor can increase revenue, a demo or no-obligation proof of concept, or support for enhancing your content or streaming service’s monetization efforts.
