Corpus Media Blog

SVOD vs AVOD- What to choose?

Consumer demand for over-the-top (OTT) video is on all-time high, and Broadcasters and content owners are in a thrust to capitalize on this insatiable demand for anytime, anywhere video content. While there is a huge potential in OTT landscape, so are the challenges.
As new companies enter the OTT space, the biggest challenge they are faced with is what monetization model to go with? The answer certainly is not that simple and which is why a lot of companies take a lot of time and planning before deciding on what to go ahead with. However, the two most common types of revenue models OTT Platforms generally choose while starting a video business is either Paid or Advertising-based. Now the real question is, how do they choose what is better for their business and what will make them earn more money?
When to Go For Subscriptions
Subscription tops the revenue model chart as it is the most convenient model for viewers as well as providers that offers a range of choices within a bundled cost for viewers and a stable recurring revenue every set duration for content owners.
Size of Content
Though content is king, but getting the right content for right audience is the biggest challenge OTT providers face today. Subscription models are best when you have long form content, which viewers are interested in watching in their home systems with their family. This refers to a large collection of movies and series that form a daily habit of viewers. You can revise and replay these movies and series to serve according to subscriber interests and viewing habits. There will always be a huge set of viewers that prefer subscribing to a service and binge-watching their favorite series, as and when they want and thus, if your content matches this type of audience, subscription is your bet.
Type of Content
If there is original content , go for SVOD.It is essential as a subscription OTT platform to keep offering fresh and original bites to your viewers in order to keep them engaged. They are sure not going to pay for your service if they can find the same content at a free platform like YouTube.
Platform integrations
Adopt the finest security and encryption measures on your live or video on demand platform while choosing a subscription model, since you hold sensitive customer information and do not want to compromise it to online threats.
When to Choose Advertising
Ad based models are intriguing to both OTT platform owners as well as viewers. Viewers access their favorite content without any cost and platform owners don’t stick to a fixed subscription income. While Netflix has nailed the subscription business landscape, YouTube has successfully demonstrated the profitability of ads driven businesses. Here are a few points that you must consider before choosing an ad-based model.
Type of Content
When your videos are relatively smaller and generic in nature, it is better to monetize them through an ad-based model, since there are less chances viewers would pay for generic content, which is available at other free platforms too. Comedy and how-to videos are best to monetize through ad-based models since these videos attract massive viewership in less time and cater to younger set of audiences, which is less likely to subscribe to your regular entertainment content.
Ad Network integrations
When you choose to offer your videos for free and plan to monetize them through advertisements, it is essential that you choose the right ad network that can provide you better advertisements to match your budget. It is essential to have an ad strategy that best serves according to the type of your audience and provides you maximum benefits and choosing the right ad network will surely keep you away from this worry.
Gaining Video views
You will only make as much money through advertisements as much your advertisers are convinced of your platform reach and video views. The spends you will get on your videos will only vary based on the viewers you’re able to attract. If you have a massive chunk of viewers, advertisers will pay more, and this is where having a good sales team comes in that can ultimately approach the right type of advertisers at right time.
Devices focus
When talking about platforms and devices, advertising works best for mobile devices. It has been noted that mobile advertising is intriguing to customers
Conclusion
In today’s dynamic OTT landscape, it is essential for video content owners to strengthen their platform base on operational flexibility and technological agility. It is an avid fact that there goes a lot in order to attract viewers, be it a subscription based or ads driven OTT business, but how quick you gather them and how quick you lose them, largely depends on the type of content you offer, technological facilities added to your platform and your marketing abilities. The crucial thing for video streaming platform owners in the first place is to understand their audience, geographies they are targeting, disposable incomes, mode of payments, advertiser interests and devices and platforms being used. They must also have their internal sales & marketing teams refined along with partnerships and technological options in order to achieve a perfect formula.

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