Should You Monetize Content With SVOD, TVOD, or AVOD Over-the-Top Media Service?

If you are a video content creator, and you either use or are considering the use of an over-the-top media service, you may be wondering how best to monetize that content. Three of the most common models for monetizing content are subscription video on demand (SVOD), transactional video on demand (TVOD), and advertising-based video on demand (AVOD). Let's look at each of these in more detail to help decide which is right for you.

SVOD

Subscription video on demand (SVOD) is a format where users typically pay a monthly or annual subscription fee for unlimited access to on-demand content. It is the model used by popular streaming services such as Netflix and Amazon Prime. This benefits content creators by generating direct revenue from consumers rather than having to rely on advertising money. Users benefit from being able to view content without commercial interruptions.

There are several keys to monetizing your content using this model. First, you'll need a robust library of content as subscribers have grown accustomed to diverse offerings from the big streaming services. You'll also want to keep things fresh with regular updates and new releases to keep subscribers engaged with your platform. Try to stand out from the crowd with a personally curated mix of video offerings that will help cultivate a loyal subscriber base.

TVOD

Transactional video on demand (TVOD) works by offering specific pieces of video content for sale or rental. Commonly known as pay-per-view, this model is often used to sell highly-promoted boxing matches or other major sporting events. Subscribers only pay for the content they want, which also makes this a viable format for things like specialized video lessons or tutorials.

Content creators who are interested in this format should have exclusive rights to new and original content on a regular basis. TVOD can be considered something of a premium offering, with higher fees that reflect exclusive access to one-time events or content streams. As a result, there is more pressure on creators to deliver premium content if they want to avoid losing subscribers.

AVOD

Advertising-based video on demand (AVOD) generates revenue by selling advertisements on video content, such as ads that pop up while watching videos on youtube. These advertisements essentially fund the content and take the form of things like pop-up banners, video commercials, or sponsored content. This allows users to view your video content for free in exchange for accepting that it will come with advertising interruptions.

Generally speaking, AVOD is best suited for creators with large audiences, as each ad view only pays a very small amount and thus requires multiple viewers to generate real revenue.

With SVOD, TVOD, and AVOD, video content creators have multiple platform options to choose from when thinking about how best to monetize content. There are benefits and drawbacks to each, so it really comes down to analyzing the nature of your content offering and how viewers tend to interact with it. Contact Lightcast to discuss these options in greater detail and chart your path to monetized video content.