Over the past decade, as internet penetration has grown stronger, OTT/VOD platforms have been the go-to option for video and audio streaming content. Consequently, OTT sector growth has resulted in a massively successful decade, especially for subscription video-on-demand platform providers. Today, there are a few ways to monetize video-on-demand services, and SVOD platform is among the most popular monetized video streaming service models and OTT companies follow the subscription model to earn steady revenue.
But with the growing competitiveness and the prospect of more niche streaming services, they need to be more focused on flexibility and usability to outstand among others. So, how is subscriber loyalty easy to achieve for companies? In this blog, you will explore SVOD’s key highlights and some crucial tips on making your SVOD platform successful.
Let’s get started!
Table of Contents
Introduction to SVOD
Subscription video-on-demand or SVOD is an entertainment model where users must pay a monthly or yearly subscription to exchange for instant access to premium movies, TV shows & any other popular video streaming services. The demand for SVOD models has been rapidly growing ever since Netflix took its service to streaming in 2007.
The market for the Subscription video-on-demand model is growing as it offers excellent ways to earn profit from monetizing video content instead of simply offering it. Global SVOD subscriptions are predicted to grow by 428 million between 2022 and 2028 to reach 1.76 billion.
Of all the revenue made in the OTT market in the previous years, 40.16% was from subscription video-on-demand (SVOD). In fact, approx 78% of U.S. households subscribe to at least one or more SVOD services. As an extra stream of income, it will always strengthen your bottom line. Further, it works as a channel to connect with your target audience, complementing the main business.
Many people are switching to subscription videos on demand for streaming sports. Giants like Amazon and Apple aim to boost viewership of their streaming subscriptions as they compete to replace DirecTV for the rights to NFL Sunday Ticket.
Critical Factors to Consider Before Building an SVOD Platform
Building a successful video platform requires meticulous planning and execution. You need to think about the uniqueness of your content for the platform and the audience you are targeting.
If you’re a broadcaster looking to establish yourself as a global SVOD content provider, then it is crucial to keep these core elements in mind. These include:
1. Understanding the market segment
Market research is critical to proceed with the right steps when tapping into a new industry.
In terms of a business like streaming content, this means understanding user preferences and viewing behaviour toward the content options available. According to the PwC report, it is important for content distributors to create fans or active users who have the same interests, likes and experiences, and return frequently to the brand. Without understanding these, designing the right value-for-money offering that viewers are willing to pay for can be difficult. Your approach for this measurement should have the ability to track on a geo-location filter.
2. Always focus on reducing the churn rate
Losing customers is the most expensive part for on-demand streaming content providers. Thus, It’s also important to know the possible ways of reducing churn. You should always be careful while designing subscription packages that drive conversion. This, once again, is possible by carefully studying data across different geo-locations.
It is suggested to stay ahead of churn by offering-
Plan upgrades or downgrades – to offer an alternative solution to customers with pricing concerns
Discounted renewal months – to customers showing signs of high churn probability.
Coupons for seasonal holidays – to keep customers engaged and reward their loyalty.
3. Secure payment across cross-border transactions
For an SVOD monetisation model, it is important to create a seamless environment for a secure payment process. It is the trustworthy factor which customers look for. Also, for cross-border transactions, there are additional aspects to consider:
Supporting preferred modes of payment (e.g. debit/credit cards vs. digital wallets)
Delivering accurate billing monthly
Multiple currencies acceptance
4. Market Your Platform on Social Media
Marketing your SVOD platform on social media is one of the most crucial aspects to increase visibility. By providing high-quality content and marketing strategy, you can get customers to notice your video platform on their favourite social media platforms. Creating a subscription video-on-demand platform is only half the battle; making it available in front of the public is the other half.
Therefore, your goal is to figure out where your audience is and position a strong enough message in front of them. Today, there are over 50 different social media platforms, but not all will work for your brand. You need to find platforms where your ideal customers hang out, such as Facebook and Instagram.
Managing an SVoD streaming service has its fair share of challenges. A few tasks such as setting a proper video monetization plan, tracking users’ engagement rate, integrating payment gateways, etc, can consume a lot of effort and time. Following the above-mentioned tips can be beneficial in terms of managing your SVoD streaming platform.
Whether you are planning to invest in subscription video on-demand services or migrate from an existing subscription-based platform, Enveu’s Saas platform for subscription management is all you need! Connect with our experts to get a deeper understanding of our offerings for SVOD to enhance your OTT business revenue.