SVOD platforms give viewers the liberty to watch extensive collections of videos at any time and from anywhere and on almost any device. In this blog, Firstlight Media will explore how using a subscription-based business model with your streaming platform can give you a competitive edge and what aspiring Tier 1 providers should look out for in the SVOD market in 2021.
Subscription-Based Business Models and Platforms:
Why SVOD Platforms?
Success depends on the user-centric cultures of B2C services, and part of that culture starts with strong customer loyalty.
SVOD platforms are strongly aligned with this idea. Premium content tailored to meet viewers’ interests has impelled many subscribers to become committed followers of SVOD platforms. A strong customer base can help your business scale and, in turn, reach a wider audience who will be interested in your content library and is willing to pay a fee to access it.
Steady Revenue Stream
With subscription-based models, OTT businesses have a steady revenue stream thanks to the monthly or annual fee consumers pay to access their content. The ability to count on that revenue provides a foundation on which to improve and extend your business.
Availability of Exclusive Content
In today’s world, the availability of unique content is a given when it comes to meeting consumers’ expectations. SVOD subscribers can feel a sense of belonging to a tight-knit community when they’re watching exclusive content that isn’t available to everyone. Because the alternatives to access and watch elsewhere are limited, SVOD content can be valued more highly than some broadcast or AVOD.
Ways to Win With Subscription-Based Model
There are different ways businesses can become successful with their subscription-based models. Here are a few typical approaches:
1. Establish A Dynamic Library of Content.
Keep your content library updated with the latest user trends in mind so your content becomes an incentive for consumers to hit that subscribe button. What customers want to feel is that the “receiving” is more than the “paying.” Ensuring this feeling within your customers is a big part of what drives subscriber loyalty.
2. Provide The Best Possible User Experience
Another driver of customer satisfaction is ensuring that the service has the user experience, the content curation, the personalization capabilities, and the discoverability that can help viewers find not just the content that brought them to the service, but also content that will keep them there.
3. Integrate a Comprehensive Social Media Strategy
A social media campaign will help businesses precisely target their audience. Having a strong social following with content updates, relevant memes, and facts makes your service relevant and top-of-mind to subscribers.
4. Be Subscriber Friendly
Ensure that your customers are well informed about the terms and conditions of your services by clearly explaining the purchase details, cancellation plans, or adding contact information for customer support, and make payment options as easy as possible and via self-care capabilities. The fewer the steps and options customers have to go through, the better the chance will be that you will win the subscriber.
SVOD Platforms | Reflection on 2020 and What to look for in 2021
2020 Was a Banner Year for SVOD Platforms
2020 was a banner year for new entrants and established SVOD players:
- Disney+ gained 87 million subscribers.
- Netflix added 37 million subscribers.
- Hulu finished third with 13 million.
- Smaller services also thrived. Crunchyroll’s worldwide subscribers reached 3 million, while those of CuriosityStream are 13 million.
In general, SVOD platforms enjoyed a strong year of growth. Ampere Analysis estimated that an average US streaming household now subscribes to four different subscription video services.
A Post-COVID World Doesn’t Put an End to the Booming SVOD Market
What will happen to SVOD growth as the world slowly resumes a “new normal” situation of pre-pandemic entertainment habits like eating out, live sports, etc.? While light usage is a possibility, there are steps SVOD services can take to make a break-up with subscribers less likely.
For the industry giants, it means new strategies. Disney+ seems to have a strategy to navigate through 2021 by announcing the release of many new original series this year. HBO Max hopes to maintain its growth by premiering all Warner Brothers’ top movies on the platform.
For aspiring Tier 1 services, it can mean strategic partnerships and creating new personalization and discovery approaches that help energize relationships with consumers. An example of this is Struum, the brand new player that is innovating solutions to recurring problems such as consumers’ frustration around finding, paying for, and accessing the content in a crowded SVOD market. Ultimately, it is about each SVOD provider finding the formula that helps it connect with consumers and become part of the subscriber’s daily habit.
Using a subscription-based model is a great option to scale your business. Despite concerns, SVOD services will likely continue to grow in 2021. Therefore, good preparation and strategic decisions will become the driving force to bring more value to your SVOD business in the new year.
Firstlight Media has its headquarters in Toronto and additional locations in San Diego, Los Angeles, and Chennai, India. For more information, visit firstlight.ai.