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) Vs SVOD (Subscription Video on Demand) are the top two.
2020 was the year of growth for AVOD in particular, as the market became more competitive, monthly costs per user dropped lower and lower, and more avenues for revenue generation were sought out. For SVOD advertising, on the other hand, the market still remains ripe as ever, with its size projected to reach USD 32.3 billion by 2025.
Here’s all you need to know about these popular VOD platform and what to choose for your platform.
Table of Contents
What is SVOD (Subscription Video On Demand)?
SVOD stands for – 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 top 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
Having fixed rates per user per month or year allows OTT platforms to maintain a stable and predictable amount of revenue each month.
2. Better Profit Margins
Compared to other OTT video monetization models, SVOD allows for higher profit margins with just a few thousand subscribers.
3. Better Customer Base
By create a subscriptions video platforms are able to maintain a better and more curated audience base than if they were to present content for free or using other online video platform revenue models.
Choose The SVOD Platform Route if…
You want a curated customer base with predictable revenue, and would prefer to keep your platform ad-free and completely in your control.
Why is SVOD the most profitable VOD model?
Businesses choosing SVOD make money by offering packaged content in monthly, quarterly or annual subscriptions charging their customers a recurring fee.
When we compare the difference between AVOD vs SVOD, businesses mostly work on membership plans with varied conceptualization. Giant media business video preneurs include Netflix, HBO Max, Disney +, Hulu, etc.
Stats indicate, some of the top video entrepreneurs implement subscription-based models as it helps to generate income of an average of $5,800 each month.
How does SVOD attract users, and how can they watch it on any device without paying extra?
The really best part that catches attention in SVOD is, viewers choosing this package can watch premium material at their leisure anywhere, anytime. They are no longer restricted by programmed schedules or waiting for a show to record to their smart box.
Since these unique content pieces can be accessed with wireless internet connectivity, the user is not at all restricted to a particular device.
And, most importantly, the best plus factor is, there is no extra fee for your audience to watch on any type of device.
All of these play a major role in cost factors for your viewers as subscription VODs can be viewed at your own convenience, much cheaper than cable or satellite TV packages.
SVOD Pricing Model
Once you decide to use an SVOD monetization approach for your video streaming business, the next step is to figure out what pricing plans you’ll use.
There are a number of different subscription-based video on demand pricing structures available. There are many but you can settle on one of the three options below:
- Explore options with Free trial
A free trial is a short period of time during which a user can view your full video library for free. A good percentage of users will decide to sign up after checking your VOD content and experience it to decide on how fascinating it is!
- Lure Customers with Freemium
Freemium, on the other hand, refers to availability of your VOD assets that consumers can access for as long as they desire for no charge using this model. Despite having minimal rise of profitability, this can also serve to gather an increased user-base.
- Capitalize on Selective Access Model
This model can be an advantage to you once your business crosses the budding stage. You can apply it in varied combinations like offer particular views or downloads a month, particular episode access, etc. For the start you can keep it simple.
What is AVOD (Advertising Video On Demand)?
What does AVOD stand for? 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, best online video hosting platforms and delivery.
Benefits of Ad-supported Video On Demand Monetization Model
1. Unlimited Videos For Free
Users can watch as many videos as they want at a stretch without a fee, as long as they sit through the ads.
2. Vast Reach
Video viewing platforms have vast and diverse audiences that companies can tap into with targeted ads.
3. Democratic Viewership
The absence of a regular fee ensures that all video content can be accessed by anyone anywhere, and this increases the reach and popularity of your platform exponentially.
Opt For an AVOD Platform if..
You’d like to promise free video and audio content to your users without creating OTT subscription models, but also want to make steady revenues off the back of such content.
Recommended Reading
Choosing Between AVOD Vs SVOD
Both SVOD and advertising-supported video on demand are positive avenues for revenue generation. SVOD vs. AVOD: While SVOD requires a one-time payment, AVOD allows consumers to watch material for free.
That said, your choice between the two would depend on your VOD 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 VOD 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 streaming platform providers can lead to a high customer churn rate.
The perks of choosing monetization
Regardless of whether you’re finally choosing advertising video on demand or SVOD advertising, there are multiple perks that choosing monetization in general offer:
- Steady Revenue: Monetization plans ensure steady revenue streams for operational and maintenance costs along with profits
- Secure Content: Adding paywalls or ads ensure content is securely watched and can’t be pirated
- Privacy: Subscriptions ensure exclusivity and privacy for users, who can customize their watchlist as per their discretion
- Flexible Monetization: OTT platform providers can vary their monetization plans depending on the type of content, to keep generic content free and premium content secure.
How VOD Helps in Generating Revenues?
Firstly, the demand for video on demand is all-time high! So you’d be stepping into a very lucrative industry with the help of world’s best video on demand solution providers. Many businesses have built their brands as a top successful VOD platform, using steady revenues also learn what is vod. This is achieved by incorporating various monetization models to fund their operations. It is flexible and scalable enough to support thousands of content pieces with millions of users at the same time.
Conclusion
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.
If you Already Have an Idea About Launching a Video Monetization Platform, Schedule a Free Demo and We’ll Get You On The Road To VOD Streaming Success!
Frequently Asked Questions(FAQ):
AVOD streaming services are all about free ad-supported content which gives another alternative to upscale revenue ladder. These are usually available free of charge to end-users. Even though this model generates lower amounts of profitability than SVOD & others, ad revenues help to offset content preparation & hosting cost factors.
At present, businesses implement a combination of monetization models leveraging on both sides of the coin! Take an example of an audience paying a subscription package of an array of collective prime content pieces. This is given along with additional fee of non-skippable ads, minting good money from both.
SVOD stands for subscription VOD or subscription video on-demand. This video service allows users to access the entire collection of videos in the library for a limited period of time. This flexible model is gained with recurring payments where your consumers can be allowed to watch videos with any device having strong internet connectivity.
When we look into the Ad-based video-on-demand model or AVOD, you can increase your revenue based on the number of views collected via instream ads. On the contrary, SVOD provides recurring money time & again with added benefits. If both are in versus to each other, this is the major difference to count, even though having many factors.
When it comes to the video streaming business, these are the crucial monetization models that have been supportive throughout. Content providers can provide their consumers with monthly, quarterly or annual subscriptions with popular streaming model. At the same time, get your numerous content libraries supported with instream ads, companion ads, skippable/ non skippable ads to double your streaming revenue.
Hello, I would like the ott platform to be monetizable and ease of access to scheduling uploading and for it to have advertorial space and subscription database and an option to go live if necessary for community public announcements happening. Tools to be able to place the layout the way I want and any suggestions you may all have to advise me on. This is a community television I would like to run through the Ott platform from VPlayed
Hi, Looking to see what is the difference between AVOD and SVOD, but would like a trial to see how your service works. I really only need 2 hrs worth. I’m running a firestick. And an m3u would be best. Thank you
Hi, I wanted to make a Movie and Tv Show streaming website. where people can watch them after SVOD advertising to become a member. Do you guys provide this kind of solution? What could be the cost? I already have a domain and hosting is necessary. Looking forward to hearing from you guys. ASAP.
Hi team, Looking to set up a service where I can charge viewers to watch videos for rental or SVOD business model
Hello, I want an application like TIVIMATE that works on different smart tvs and android devices intended for sale either by SVOD model or by a lifetime license, this application allows users to view live channels and vod from third-party providers at from an m3u link or xtream codes, and that I am not responsible for the content. Thanks
Hi there! We are looking to put together a basic sports streaming site behind a subscription vod on a tight timeline. We would love to chat and find out more about your product and if it can help us in this space. I look forward to hearing from you
Hi team, I currently have my video subscription at Viddler. They charge me $130 a month and if I add any more videos, they will charge more per month. Can you compete with that? I am not making a lot of money because of the high monthly cost. Here is my current subscription.
Hello, I’m an entrepreneur and I intend to buy a platform that allows me to transmit SVOD monetization & SV-tv or live tv. We would like to receive information such as prices, proposals or contacts of the department, person, responsible for this feat. Thank you, I look forward to feedback!
Hello, I’m looking for a service to start my own online academy and found VPlayed during my searches. Before going much further I’d need to know more about the price point to see if it’s inside my start up budget. I’m looking to host quite a few videos mainly based on a SVOD plan for my members. Can you provide me with some more information before we take things further?
Hi, Looking to get a SVOD platform where members can choose from two tiers of subscriptions that gives them access to a database of uploaded yoga videos where I own all of my content.
We are building an AVOD focused on contemporary men’s style content with live shopping capabilities for fashion retailers.
Dear Contus, I’m keen to know more about your platform as part of a client request to upgrade their existing SVOD platform this Autumn. Kind regards Iain
Hi, we are a digital agency based in Dubai. We would like to know how we can utilize your platform to run our AVOD OTT campaigns. Would like to get a demo of your platform.
Hi There, I am gathering quotes from avod svod platform creators. Will you please provide a rough estimates of costings to begin using your platform please. Regards Fintan
Interested in test driving any of your AVOD apps that has integrated live FAST channels and AVOD titles. Also interested to learn if you have integrated with AMAGI, WURL, etc.
Looking to add a SVOD & AVOD feature in our iOS and tvOS apps as part of an existing auto-renewable subscription.
Hi, We’re into field of advertising and are now planning to enter into the AVOD and SVOD sector. Need more information about white label solution for the App and for TV and cost. Awaiting for your reply. Thanks
Hello, I am currently exploring options for YES TV (yestv.com) to venture into having it’s own OTT platform. I do have some initial conversations scheduled with some of your competitors and was hoping to see how VPlayed could be potentially a better fit. We would be looking (quite likely) at launching free service initially but growing towards an AVOD model eventually. The potential of a linear stream at some point would also be on the table. App support for users would be a big one for us. Looking forward to chatting, Gavin
Looking for difference between avod and svod, to get a SVOD platform where members can choose from two tiers of subscriptions that gives them access to a database of uploaded yoga videos where I own all of my content.
We are interested in purchasing a self-hosted OTT website solution supporting SVOD, payment gateway, and customer DB. we would like to know what avod vs svod is?
We are interested in purchasing a self-hosted OTT website solution supporting SVOD, payment gateway, and customer DB. we would like to know what avod vs svod is?
Would you be able to provide a complete solution to streaming films, series, and documentaries with a subscription and payment gateway, and a phone operator?
Hi, I am planning to start a new project with AVOD advertising. Looking for the best frame in the backend with strong technology support. It should fit our business needs with reasonable cost. Ideally own brand, domain, websites and even mobile apps. Hope we can meet soon!
Hi, It would be great if I could stream live sports on a subscription video on demand channel. It would be great to have an app with only sports, where it is just sports. I have no website yet but I do have a company name idea which is SportsVille. Wondering if you guys can help and budget wise where I’m trying to stay steady wise in budget.
Hello, For about 200-2000 users, I am looking for a SVOD service that can be quickly built. Video content will comprise 300 minutes (60 x 5 minutes) to begin with, and 150 minutes (30 x 5 minutes) per month thereafter. How much would this cost in total?
HI, We need ad-based video on demand that will be the distribution method I choose for my feature films. Apparently, you have monetization solutions based on ads. If you could tell me more, I would appreciate it.
We are building a video advertising platform focused on contemporary men’s style content with live shopping capabilities for fashion retailers.
My client is interested in upgrading their existing SVOD streaming platform in the fall, so I am curious about your platform. thank you,
HI, I would like to know if you have web application templates and TV app templates for 30 episodes and 900 minutes of content. What are the requirements for SVOD Platforms, and do you offer in-house ad approval or only third parties?
My company, STORM TV, is a subscription-based videos-on-demand service. I am interested in integrating AVOD Platform into the service. It would be helpful for me to speak to someone about pricing and a few other questions. Entertainment and reality television videos are featured on Storm TV. Thank you for your time.
HI, We’re a Dubai-based digital agency. If your platform can be used to run AVOD OTT campaigns, we would like to know how. Could you please give me a demonstration of your platform. Many thanks,
Hello, We are US based monetization platform and we would like to create svod. Artists should be able to monetize these using advertising and or subscriptions. I was wondering what your company could do for us. Kind regards.
Hi, We are planning to build a monetization platform and would like to discuss the SVOD VS AVOD costing and other details. If possible arrange for a demo/ discussion by this afternoon.
Dear, We are searching for a difference between AVOD and SVOD to monetize the platform for our media group. Can you please advise on your pricing Best and demo session?
Thanks, Advance
We are interested in monetizing our content by starting an AVOD platform. Need your suggestion to create, build and monetize our content through a SVOD monetization platform. Thanks
Hi, I would like to have a demo of the system to check if it would suit our needs or launch our own monetization platform with avod vs svod. Can you please arrange the 1-1 session for us.
Thanks for sharing the most popular example of AVOD is YouTube. We need to start an AVOD monetization customized as per our need for delivering our 200 hrs. of OTT content in USA. Kindly reach out at the earliest with pricing factors and features.
Interested in a demo that fully describes AVOD is a VOD service that allows you to buy content on a pay-per-view basis It’s basically the opposite of SVOD platform to see if it’s a good fit to create monetization platform for my new streaming business. Also need experts suggestion to make more successful by generation 4x revenue. Thanks, Advance
Hey, we would love to test your SVOD as we are in the process of building a monetization platform for our services. Already using another one, but not satisfied. So willing to migrate to another third-party streaming company. Kindly arrange a demo for us. Thanks
Very useful article. Is it necessary to make a combined monetization platform with SVOD & AVOD for our video services? How to do it with the VPlayed solution? Thanks
Hey, we would love to test your monetization options like avod & svod as we are in the process of building a OTT platform for our services. Already using another one, but not satisfied. So willing to migrate to another third-party streaming company. Kindly arrange demo for us.
Thanks
Interested in a demo that fully describes this platform to see if it’s a good fit to create a monetization platform with avod & svod for my new video streaming business. Also need experts suggestion to make more successful by generation 4x revenue. Thanks, Advance
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Good to read about the AVOD vs SVOD difference and its complete definition. Can you please update the procedure to start a VOD for our video streaming business?
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Hello there, I need to add white label vod platform in an existing app used for schools, and video conferencing for whole classrooms. Please let me know the price for video on demand for both ios and android. As well as with video monetization options like SVOD, AVOD.
Hi… I understand the requirements that you have been searching for.. You can integrate an entire VOD platform & whitelabel it forever or rather I would recommend you to choose an educational video platform which can be solely dedicated to stream elearning on demand or live content. And, to have monetization options with individual platforms you can get in touch with our experts at https://www.vplayed.com/contact-sales.php.
Hi! We are a startup in the professional networking sector. We are interested in your monetization models on video on demand solutions. Similar to professional networking platforms like Amazon Prime, we are looking to put heavy emphasis on helping our users to have new valuable connections through video on demand platforms. I’m quite intrigued by your pricing structure breakdown as well as the video monetization feature like SVOD, AVOD & more.
Hi.. Thanks for getting back to us.. You can now help users to have personalized video watching experience with user-centric & professional VOD platform. For exploring pricing structure, you can get in touch with our in-house streaming experts. All you need to do is fill in the details via the contact us page, & we’ll get back to you shortly.
Hi, Great article about SVOD vs AVOD. I am a dance trainer and looking at creating a live streaming class app for my clients and people who are interested in watching. I also like to have other instructors use this vod platform to upload their own channel and upload their own videos and be able to charge their clients a fee to stream with monetization options like SVOD, AVOD, & TVOD. Kindly provides details about it.
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Hi…
I want to make money in my streaming video, required vod application with including video live streaming, workout live streaming to connect the user with our experts’ clients and get more revenue through svod, avod model. we need to customize it. could you please send me all the details along with your pricing? And finally, we need a video on demand solution that’s why we will reach you.
Hi.. Thanks for enquiring… You can have all services put together in one unified solution from VPlayed. Let us know with your details through the contact us form & we can have a quick chat to take things forward.. Also you can request for a demo to have an idea of launching a VOD premium platform.
Hello, we have a collection of movie and movie-making studios with multiple locations, we like to move online and I want to make money with monetization model of svod, avod. We would like to implement a customized vod app and streaming platform services able to track progress through and allow the consumer & the service provider to video and transact. We are launching this month and we would greatly appreciate your input. Many thanks, Ana
Hi Ana, To have a perfectly suited business model, we recommend you to have a video on demand solution where you can provide lucrative opportunities for service providers to showcase their unique content in the form of in-stream ads.. On the other hand, you can broadcast blockbuster video releases to your end-consumers maximizing profits in a short time with monetization model of SVOD, AVOD.
Greetings, Still no response from anyone about my request. Please I would like to know if I can make money for my youtube channel studio to create more revenue on my own live video from the subscribers and if I can get a vod platform for session plan created for my online video on demand website, although we will be using this company for the live class, whiteboard screen sharing, video recording, etc…please get back to me asap
Hello.. Firstly, we would like to apologize for keeping you waiting for a long time. We deeply appreciate it. You can let us have your contact details as our technical team would get in touch with you in a jiffy to provide more inputs to build an video platform & deliver live class sessions, workshop capture, etc.
Hi, we are evaluating the make money video on demand to integrate our app, its works on actions in entertainemnt, sports, and workshop, I would like to know-how are the values and business programs work. I need to make money with avod, svod monetization model. .
I plan to create a video on demand platform that channels can do live-stream their video online, I like to make money with monetization options like avod, svod in the industry online. I need to use a third-party service that can make this casework and I’m looking for a vod platform. VPlayed is fit for my requirements?
Yes definitely! Without any doubts, you can build a whitelabel VOD platform with customized functionalities along with niche requirements like live streaming, third-party integration, monetization options, etc. To facilitate with an array of feature-rich platform, you can check wide opportunities to monetize at: https://www.vplayed.com/
I would like to create and use your VOD app for all my youtube studio and also make money with monetization models like svod, pvod for vod platform right now. Kindly let me know the pricing or packages you have
I am looking to create a VOD platform for my youtube channel studio and like to make money with monetization models like svod, avod in online video. Looking forward to getting your estimate. Regards Jain
Hello Jain.. While you are in search of starting your own channel you can have your monetization model like SVOD, AVOD as well as cast live content in a video on demand platform from VPlayed where you can store numerous content with an extensive video CMS library. To have estimated figures, you can drop-in your queries in contact us form & our sales team will contact you soon.
We are the largest studio enterprise with 20 more youtube channels based out of Malaysia and we are looking for VOD platform for online video streaming also I like to know how to make money, I learnt few things from your blog as AVOD vs SVOD. We would like to know more about the pricing and other commercial details.
Hi… Thanks for taking the time to let us know with your feedback. You can now have the pricing structure to launch your own video on demand platform with other related information through our sales team https://www.vplayed.com/contact-sales.php.
Meanwhile, you can have refer things that you need to know before how premium video content works just like Netflix via https://blog.vplayed.com/premium-video-on-demand/
Looking to integrate a vod platform into our video streaming channel and like to make money using SVOD vs AVOD with a monetization model. Can you please provide details of how your vod platform works and make money with the monetization model and the app? Also, provide details about your pricing of the video on demand app.
Hello, I am contacting you on behalf of one of our customers, I would like to know some information about your vod platform’s & way to generate revenue using AVOD vs SVOD. Is it possible to know your pricing model for your solution, your hosting solution, and the order of price for about 5 million subscribers? Best regards, Clara Lê
Hi clara.. Thanks for getting back to us. You can have detailed information about how to create an end-to-end budget-friendly video on demand platform with revenue generating model from our technical team of streaming expertise.
For getting in touch you can click on https://www.vplayed.com/contact-sales.php & send-in your queries & we’ll be happy to answer them quickly.
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Hi, my question is, is it like the mode of AVOD, SVOD can only be for movie streaming or it will work for general YouTubers who are at home & can upload videos anytime? Thanks
Hi.. You can have varied streaming solutions of your choice from VPlayed. It is not necessary to have only a solo streaming platform for premium movies but customize it to add your thousand+ content even with general youtubers. The key highlight is you can earn better returns than streaming in Youtube, as you can keep 100% of your earned profits. To have detailed insights on them, get in touch with one of our specialists through https://www.vplayed.com/contact-sales.php.
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What is the revenue what I will earn through AVOD? how much will I earn approx. per one ad Video view?
Hi, This is Joyce from Tech-code Class. We have creating training videos and uploading on our site to make it accessible for everyone. After the pandemic situation, Planning to move complete digital platform. I’ll send you the requirements to build e-learning platform with subscription video on demand services. Kindly update me asap.
Thanks
Joyce
Looking for a solution to monetize our video content with multiple models. Both subscription & advertisement will be fine for us to target premium and free users like YouTube. Can we have a call regarding this implementation of ott video monetization strategy.
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