Subscription Video on Demand is a rapidly growing industry for a variety of reasons. It allows consumers to pay for only the content they want, which is one of the primary reasons why audiences are neglecting cable and other traditional providers.
Moreover, it provides businesses with a direct line of revenue from consumers without the need to consult with or sell to advertisers. This has the added benefit of freeing users from troubling ad interruptions. SVOD is an excellent solution for businesses that have a dedicated audience that is willing to pay. Businesses that use SVOD make money by selling packaged content in monthly, quarterly, or annual subscriptions and charging their customers a recurring fee.
In this article, we'll give you some good tips to help you launch your successful SVOD service
Subscription video on demand is called SVOD. It allows users to pay a regular price for unlimited access to a huge library of audio and video content for the term of the subscription. For a monthly/annual pay, subscription video on demand (SVOD) services provides access to a library of content, which includes movies, TV series, and other original content. SVOD services are often delivered via streaming, which requires the use of an active internet connection. Netflix and Amazon Prime Video are two major SVOD businesses that are market leaders.
A successful SVOD model will generally have the following features:
1. Automated operations – suitable for managing customer accounts, billing plans, and other logistics (product, price and billing frequency, which can grow exponentially as revenues scale). Manually doing these activities is inefficient, a mistake, and time-consuming.
2. Easy-to-understand customer terms and conditions -- simple communication ensuring that customer terms and conditions properly explain purchase information and cancelling options. Customer retention is ensured by including customer support contact details.
3. Value proposition--A major part of SVOD revenue success is the value proposition. When buying a product or service, customers must believe that they are getting better value for their money.
4. Quick payment methods --payments should be as easy as possible. This also applies to any additional measures that need customers to take further steps to activate recurring billing. As a result of these additional options, conversion rates are generally lower.
5. Larger Profit Margin– SVOD delivers larger profit margins than other OTT video monetization options, even with a limited number of users.
Starting an SVOD service can be ideal for you if you have high-quality content for online consumption. Make sure, though, that you have a substantial library to offer. Content from a variety of genres and categories should also be included.
As a content provider, you must ensure that your audience has access to new content regularly. As a result, you must be financially prepared to regularly acquire or provide new content.
Finding your speciality also helps in the creation of your company's personal brand. This includes a fantastic website, an easy-to-use platform, and high-quality, original content. Your target audience will be attracted to your brand because of the type of material you give and how simple it is to get that content.
The subscription model is the most simple and popular revenue strategy for SVOD. You can, however, combine subscription, transactional, and ad-supported revenue methods to create effectively bundled revenue plans. Choose an appropriate mix and a hybrid revenue model that is most suited for your company and allows you to increase income with reduced expenses.
Examine the content of your competition to see what they have to offer. Keep a closer check on what they're buying or investing in when it comes to content. This helps you to spot gaps in your content mix and fill them with expert content that you can charge a premium for. Examine the revenue models of your competitors and design a pricing strategy to draw subscribers. Compare and contrast your content mix with that of your competitors to avoid duplicating content. The first mover always wins when there is a duplication.
Choosing the correct technology is one of the most important components of creating a successful SVOD service.
It's not easy to set up a streaming service. When creating an SVOD service, it's necessary to consider the following factors:
CDN: It basically speeds up the rendering of content by distributing it to multiple locations at the same time, giving your consumers better coverage. Including a CDN in your SVOD platform is a wise choice because your content will be displayed faster to your subscribers, resulting in a better viewing experience.
DRM (Digital Rights Management)*: Having a DRM system protects your content against unauthorized reproduction. This protects you from piracy while also ensuring a more consistent cash source.
PCI Compliance: Make sure your platform complies with the PCI Security Standards Council. It means the platform must meet the requirements for processing, storing, and securely transmitting payment credentials.
Make sure your SVOD service includes the option to integrate (API) with live streaming feeds for high-traffic content like live sports or award shows. Regularly, you might want to make your content available via live streaming. Cooking videos, for example, can be live-streamed on a weekly basis. This is an excellent method of promoting your subscription-based business.
One of the most critical things to figure out before the launch is pricing.
Examine your competitors and see how much other SVOD providers charge. If you're not sure how much to charge for your content, offer a similar price to your competitors. Most streaming services provide two or three subscription options: monthly, quarterly, and annual.
Using adverts to keep your audience engaged is an excellent method. You should promote premium content and future content on your website to remind your viewers of their favourite shows. The number of views for premium content will rise as a result of this.
Conducting a test to ensure that everything is working properly before launching your business online is a good idea. Before submitting the apps to the store, there are a number of things you should evaluate. Check to see if:
- All the videos are properly playing
- You like the user interface.
- The website and app have good performance.
- To watch videos, you can pay.
SVOD is on the rise and shows no signs of slowing. To launch a successful SVOD service, you'll need to develop a strong brand that will connect with your target audience, as well as an effective website with an appealing design and clear customer-focused messaging. To help you build a well-known brand and launch a successful SVOD business, use the tips listed above.