Video content has many purposes in the business world. It is primarily used in ads and content marketing strategies, but video content can actually be used as a product.
Mini-films, tutorials, lessons, webinars, and other videos can be sold for on demand consumption. There are a few ways to monetize video on demand services, and SVOD is among the most popular.
Today, we’re going to talk about SVOD, what it is, who should use it, and the best online video platforms for setting up SVOD.
Table of Contents
- Video Monetization: The Different Methods
- What is SVOD?
- When to Monetize with SVOD
- Using SVOD with an Online Video Platform
- Paywalls for VOD Monetization
- OTT Technology for SVOD Streaming
- Online Video Platforms with SVOD Capabilities
Video Monetization: The Different Methods
As video streaming becomes more and more popular, the options for monetizing video content become broader. Many people automatically think about using Youtube and its ad-based VOD structure when they consider monetizing their content, but this is not the only option.
Different types of content have individual purposes. This means they will be consumed differently and, in turn, monetized differently.
There are three ways to monetize your video: SVOD, TVOD, and AVOD.
SVOD—short for “subscription video on demand”—is used to provide on demand access on a subscription basis.
With SVOD, viewers pay for a subscription that typically ranges from monthly to annually. Their subscription provides unlimited access to the video content on the platform.
Depending on the amount of content you have to provide, subscriptions can be as little as one day or even greater than a year.
Prime Video and iTunes are two popular TVOD platforms.
Ad-based video on demand (AVOD) is a common video monetization method. Basically, people can view the videos for “free.” They just have to watch a quick ad.
In this scenario, broadcasters make money from ad revenue. It is a little different from television but a great example is commercials that interrupt your show. Advertisers pay the channels to show their ads to viewers.
Youtube uses this monetization technique. However, if you want to monetize your videos on Youtube with ads, your profile and content must meet quite a bit of criterion.
What is SVOD?
Subscription video on demand (SVOD) is exactly what it sounds like. Viewers pay a subscription fee to access your video content on demand.
Currently, more than one in three broadcasters use subscription models to monetize their content.
You’re likely familiar with platforms like Netflix, Hulu, and Disney+. You pay a monthly or annual fee and you get access to any shows or movies that they have to offer.
These are pretty large scale SVOD platforms, but they paint a pretty clear picture of how SVODs operate.
SVOD platforms are quite hot at the moment and are only getting hotter. Business Insider reports that even though many people are already using SVOD services, many are willing to expand their budgets to invest in additional SVOD services.
When to Monetize with SVOD
Monetizing video content with SVOD is a great option for many, but it is not a one-size-fits-all sort of deal.
You’d use an SVOD approach when you’re broadcasting a body of content that your audience would want to access multiple times.
Depending on the price and length of the subscription, regular consumption could be defined as streaming your videos once a day or a couple of times a month.
There are a few general types of content that work well with SVOD.
1. Live Entertainment
Typically, films and television series are the most popular types of content on SVOD entertainment platforms, but the options are actually much broader.
Did you know that nearly 5 million people attend virtual music festivals each year?
Since the coronavirus spread across the world this spring, streaming different types of videos for entertainment from home has become even more popular.
People are streaming mini-concerts, “open-mic nights,” poetry readings, and more. Entertainers who would typically go on tour can create online series where they broadcast their performances. Depending on how these series are set up, SVOD is certainly an option.
2. Exercise and Wellness
Also due to the billions of people stuck in their homes as a result of the coronavirus, there has been a huge boom of SVOD workout platforms.
You can create a massive arsenal of workouts that viewers can do from the comfort of their homes.
This is a great alternative for personal trainers, studios, and gyms that usually host in-person sessions.
Even if you aren’t forced to stay inside because of a pandemic or other natural disaster, moving your fitness classes onto an SVOD platform has its perks. It is a fantastic way to reach a greater number of clients since the internet makes it possible for people all over the world to attend classes.
3. Live Streaming Sports
Live streaming sports technically fall under entertainment, but watching sporting events is a little different than watching a TV show or film.
You can offer seasonal subscriptions to watch your team’s games or matches on demand or live.
Creating a small SVOD is particularly useful for sporting teams that don’t get air time on ESPN, NBC Sports, and the other big sports television networks but still have a loyal fanbase.
However, it is also totally possible to create an ESPN-grade sports network with OVPs like Dacast, as well.
4. Online Education and e-Learning
The birth of informal education has allowed people to both teach and receive information in a brand new way. Gurus, tutors, and other types of educators can create content and make it available on their own VOD platforms.
Independent educators can monetize their materials with SVOD.
Traditional education organizations—including universities, grade schools, and trade schools—would not typically use SVOD monetization techniques since their content is funded in another way.
Using SVOD with an Online Video Platform
SVOD is not a particular software or tool. It is a platform that you create. It is where your subscribers access your content. You use an online video platform—also called a video hosting platform—to set up your SVOD.
When choosing an online video platform, there are two very important things to consider. You want to make sure that your OVP is equipped with proper monetization capabilities and streaming technology.
In order to monetize your VOD with subscriptions, you’ll need secure paywalls. In order to make your videos most easily accessible for your paying customers, you’ll also need a streaming solution that uses OTT technology.
Let’s take a look at how these two things come into play.
Paywall for VOD Monetization
When choosing an online video platform to set up SVOD, you want to make sure it has secure paywall capabilities.
Security is key when it comes to using SVOD. You want to choose an online hosting platform that supports both secure video upload and top of the line cybersecurity features so that your content is safe and your users’ sensitive information stays out of the wrong hands.
OTT Technology for SVOD Streaming
Technically, SVOD has been around since the days of cable and satellite when television providers had “On Demand.” Some on demand shows were truly subscription-based and others were pay-per-view.
However, over-the-top (OTT) technology is what made SVOD so popular and easily accessible. OTT is what allows broadcasters to bypass cable, satellite, and other traditional streaming methods. It is made possible by the internet.
The power to stream over the internet allows your viewers to stream pretty much wherever they go. VOD and OTT are a dynamic duo.
In addition to VOD, you can also monetize live streams with OTT technology. Subscription monetization works with live streaming, too.
Online Video Platforms with SVOD Capabilities
There are so many amazing online video platforms (OVPs) on the market, but only a select few have powerful monetization features.
We have sorted through a few of the most popular OVPs and pulled out the ones with SVOD monetization capabilities.
Here’s what we’ve got.
Dacast is an online video platform that is perfect for setting up a profitable VOD solution. This is all made possible by vzaar, an advanced video hosting platform tool acquired by Dacast in recent years.
Vzaar is loved by many because of its unique video management system. Keeping all of your videos sorted is essential so that your subscribers can navigate through your content with ease.
We offer several video monetization options, including secure paywall options, SVOD, AVOD, and TVOD.
2. IBM Cloud Video
IBM Cloud Video is another great online video platform with SVOD monetization features. However, this OVP only has SVOD features.
While they lack AVOD and TVOD capabilities, they do have subscriber management tools that come in handy.
Like Dacast, Muvi is an online video platform with a full range of VOD monetization options. While Muvi supports paywalls, it does not allow you to password-protect individual videos.
One great benefit of Muvi is that it has a built-in loyalty reward system. This gives subscribers the incentive to invite other users to join your platform.
If your business falls into the independent education, entertainment, sports or fitness realms, SVOD is a great option to consider for monetizing your video content.
If a subscription video on demand platform doesn’t seem right for your business, there is nothing to worry about. AVOD and TVOD are great options, too.
Are you ready to make some money on your video broadcasts?
If you are looking for the perfect streaming solution for your VOD business, Dacast is the way to go. You can try Dacast absolutely risk-free for 30 days. Start your free trial today.