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Subscription video on demand (SVOD) grants viewers access to on-demand video content in exchange for a recurring rate or subscription. It is one of three monetization strategies for video on demand (VOD) services.
Take Netflix, for example. The platform charges subscribers a monthly or annual fee for unlimited access to their library of on-demand content. Other SVOD services include:
SVOD platforms can offer ad-free or ad-supported programming. Regardless, each SVOD platform charges a recurring fee of some sorts.
SVOD services have grown in popularity among today’s viewers. Platforms typically offer a variety of subscription packages so that viewers of all budget sizes can pick a plan that meets their needs. Better still, SVOD services give viewers the ability to join without a long-term contract, unlike traditional cable contracts.
There are several advantages of SVOD from an advertiser’s perspective, too. For one, it provides a consistent, predictable revenue stream.
This model is also more likely to boost brand loyalty. SVOD platforms must offer top-notch, on-demand content to keep viewers from unsubscribing — think of Netflix’s hit show Stranger Things. Because of this, viewers are more likely to become loyal to a specific streaming service.
Each video on demand model generates revenue in its own unique way. An advertising-supported video on demand service relies on ads to generate revenue. A TVOD platform requires viewers to pay a one-time fee to watch an individual piece of content. Recurring fees, either monthly or annual, are the foundation of SVODs.
There are a few types of video content that work especially well in an SVOD model, including live sports, live entertainment and online education. In other words, content that will keep viewers engaged. Niche content also makes sense here, since providing video content to a target audience can be a sticky factor that keeps subscribers tuned in for the long-term.
SVOD, as well as AVOD, offers a unique opportunity for advertisers to create advanced TV targeting strategies that reach audiences who are highly engaged with the video content they consume. VOD viewers watch more television than most viewers on average, and live event shows keep overall averages low for viewership. VOD viewers are a golden opportunity for advertisers to reach selective, engaged and intentional viewers who are most likely to engage in relevant advertising content when it hits them because of the self-selecting bias.
Through our TV+® platform, Simulmedia has direct integrations with over 250 networks and publishers in the linear and connected TV landscape, including every major streaming service, so advertisers can plan, buy, activate and measure across SVOD and AVOD programming. Our proprietary technology takes into consideration the hundreds of combinations of target audiences, programs, and platforms on which a given ad can run, and churns out the most predictably successful campaign strategy based on your baseline metrics and campaign goals.
Alongside targeting VOD advertising, TV+ allows advertisers to place ads across networks, platforms and programs with different audiences and goals, to create a holistic, 360-degree approach to achieving a successful campaign. And your ad strategy can pivot as the results roll in, adopting a test-and-learn approach to optimization. Most importantly, our unique access to both linear and streaming TV inventory allows advertisers to understand where their audiences intersect and how best to reach them with guaranteed scale and speed that no one else can deliver.