SVOD vs AVOD - Which is the Best Revenue Model For VOD?

• Posted by Meryem Rai August 13, 2021 - Filed in Arts & Culture - #avod vs svod  #svod and avod  #avod svod  #what is avod vs svod  - 814 views

  The internet has revolutionized how we access video and audio content. Gone are the days of switching between TV channels; now, we’re able to choose what we want to watch from a catalogued list. The umbrella term for this is VOD (video on demand) and there are multiple revenue models for businesses to choose from if they go down this route. AVOD (Advertising Video on Demand) and SVOD (Subscription Video on Demand) are the top two.

  What Is SVOD (Subscription Video On Demand)?

  Subscription video on demand allows users to pay a regular fee and, in return, receive unlimited access to a massive catalogue of audio or video content for that duration. This OTT video monetization model is quite similar to traditional TV packages, but the content is much more curated and can be categorized for niche industries or general audiences.

  Benefits Of Subscription Video On Demand Model

  1. Predictable And Recurring Revenue

  2. Better Profit Margins

  3. Better Customer Base

  What Is AVOD (Advertising Video On Demand)?

  AVOD refers to ad-based video on demand. In this OTT monetization method, video content can be accessed by users for free. However, like broadcast television, they will need to sit through targeted ads to be able to access that content, and this becomes the revenue stream for the platform owner. YouTube is by far the best known example of AVOD advertising, where the revenue from ads are used to offset the costs of production, hosting and delivery.

  Choosing Between SVOD And AVOD

  Both SVOD and advertising-supported video on demand are positive avenues for revenue generation. That said, your choice between the two would depend on your business model, and the following factors:

  • Type of content
  • Advertising landscape
  • Audience demographics
  • Content fees and licenses
  • Investments in platform and content management systems
  • Financial goals per month and year

  The Importance Of Choosing The Right Revenue Model

  Revenue models also need to work perfectly with a multi-device, web-powered ecosystem that will be accessed by thousands of people all at once. As a result, they need to be secure and confidential and immediately unlock access for users upon payment. Delays and lags in subscription video on demand platform providers can lead to a high customer churn rate.

  Building or creating the ideal video monetization platform ensures you’re able to provide quality content to a curated set of users while also maintaining steady revenue and building your successes.

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