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SVOD or AVOD: WHICH MODEL TO CHOOSE?

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Before starting your OTT channel, you should decide which business model to adopt; the two most common types of models are: SVoD (subscription based) or AVoD (advertising based).

 

What is an SVOD?

SVOD stands for "Subscription Video on Demand"; users must pay a monthly / quarterly / annual subscription to gain access to all the content of the streaming platform. SVOD is the most popular and affordable monetization model for both providers and viewers because of its stable recurring revenue. The main VoD platforms in the world are Netflix, Rakuten, Amazon Prime Video.

 

How can I understand if it is suitable for your project?

Here are some parameters by which you can decide whether the SVOD meets your business requirements or not.

Content quantity: Subscription models work best when you have a lot of content (films, shorts, documentaries, animations, live streaming).

Original Productions: It is essential that a subscription-based OTT platform (SVOD) continues to offer its viewers original and exclusive content to keep them involved.

Excellent marketing: An SVOD must have sufficient resources to promote its channel constantly. Without a good marketing budget, you will not be able to reach potential viewers and therefore customers.

 

What is an AVOD?

It is an advertising-based Video on Demand system. Users can access content without having to pay any monthly fees. In some cases their registration is required for others it is not mandatory.

 

How to understand if it can be adapted to your business model?

Content type: If you have generic content and not in large quantities, it is better to opt for an ad-based model

Advertising strategy: If you are thinking of choosing an advertising-based streaming platform, you should have an advertising strategy that allows you to generate a large number of visits on your channel; the more your pages and content are viewed, the more your revenues increase. In addition, you should choose the right advertising network, which will allow you to monetize the views of your content automatically.

 

Vodevolution.com has integrated Adsense to ensure its customers secure monetization from the first day the channel is online.

 

Vdevolution.com can help you launch your OTT platform based on different monetization systems: SVOD, TVOD, AVOD and Freemium.

 

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