According to a new report from Juniper Research, there will be nearly 2 billion active subscriptions to VoD services in 2025. This number translates into a 65% burst over the end of 2020, illustrating the rising demand for Subscription Video on Demand (SVOD) services. This blog will walk you through the SVoD meaning and how consumers can get their best on-demand experience from streaming services like Struum!
Let’s Break Down SVoD Meaning and Advantages:
SVoD Meaning | Subscription Video on Demand Definition
Subscription Video on Demand (SVoD) refers to video streaming services that require users’ subscriptions for authorized access to content.
For example, Netflix users must pay a monthly subscription fee to watch their content because it is an SVOD service.
You might have heard of AvoD (or Advertising-based VoD) or TVoD (Transactional VoD). Like SVoD, these are not considered subsets of VoD (Video-on-Demand) but instead categories themselves. TVoD and AVoD are different in their ways of generating revenue:
- TVoD services: revenue comes from single transactions
- AVoD services: generate revenue from ads
The Competitive Market of SVoD Businesses
Audiences are turning away from cable and traditional providers and resorting to SVoD services. This trend makes the SVoD market highly competitive with lots of players. Some competitive edges of SVoD compared to traditional TV experiences:
- More personalized content: SVoD empowers consumers to pay only for their desired services. For businesses with a dedicated audience that is willing to pay, SVoD is an excellent solution.
- Avoiding annoying ad interruptions: SVoD service providers pull revenue directly from consumers without having to consult or sell to advertisers.
- Leveraging OTT platforms: SVoD businesses can leverage Roku, Apple TV, Amazon Fire TV, and other OTT platforms, removing the need for a pay-TV set-top box and creating more accessibility of their content.
Examples of Successful SVoD Business Models
Successful SVoD business models continue to dominate the market, with the golden examples being Amazon Prime and Disney+. SVOD also includes services such as HBO Max or ESPN+ that are extensions of existing popular broadcast or cable channels
Also, keep an eye out for niche channels like Crunchyroll or American Kennel Club. These are places where dedicated fans of a particular topic or genre congregate and binge-watch their desired content.
Struum is the newest OTT player in this booming industry. Founded by former Disney and Discovery executives and backed by Michael Eisner’s (former Disney CEO) Tornate Co., the new streaming venture has a mission to help bring content from hundreds of niche and specialty services to consumers. On Jan 7, 2021, Firstlight Media announced its collaboration with Struum to deploy its new cloud-native streaming platform (built on revolutionary Gen 5 architecture) to support the growth of Struum.
For more details on this collaboration between Firstlight Media and Struum, click here!
In recent years, SVoD has become a highly competitive space with lots of players. Despite being a great challenge to existing business models, the SVoD market also opens a wealth of opportunities for service providers. Stay tuned because the best has yet to come!
Firstlight Media has its headquarters in Toronto and additional locations in San Diego, Los Angeles, and Chennai, India. For more information, visit firstlight.ai. To learn about Struum, visit www.struum.com