OTT (Over-The-Top) video platforms are the strongest competitor for conventional television and cable companies due to their low cost and fast digital insertion. However, the terminology used to name each of them can sound quite confusing. In this article, we will clarify all doubts and define each of the terms.
AVOD (Advertising Video on Demand) systems are a content delivery model where users can access the videos, but these videos contain advertising inserts. Using this advertising strategy, the content owner can make the videos profitable without requiring users' payments.
Ads are known as Video Inserts and are played while the user watches the content; they are generally presented before the video and are called pre-rolls. They can also be shown at an intermediate point of the video (mid-rolls) and, to a lesser extent, at the end of the video (post-rolls).
Ads are usually a few seconds long, and the user can decide to skip them after a few seconds. The price that the advertiser will pay to appear in the video is defined in this way.
The primary example of platforms using AVOD as a content monetization system is YouTube.
SVOD (Subscription Video on Demand) systems are the way to offer content to the user via a subscription. In this way, the viewer pays a monthly or annual fee and can enjoy videos without advertising.
Generally, it allows access to Premium Content such as premieres, exclusive content, and an extensive video catalog available only to subscribed users.
Certain SVOD systems allow users to download content for later enjoyment without the need for an Internet connection.
The leading example of platforms using SVOD as a content monetization system is Netflix.
TVOD (Transactional Video on Demand) systems are the way for the user to pay only for the content they want to watch. In this way, the content is available while the event is running if it is live content such as a football match, or the user can access the video for some time. It is similar to renting a video that will be available for specific hours.
The user can choose certain content to watch without buying a full subscription and only pays once.
The most common is the PPV (Pay Per View) system, where the user pays for the individual events or the movie they want to watch.
The prominent examples of platforms using TVOD as a content monetization system are iTunes and Amazon Instant Video.
Understanding how these OTT business models work will help you define the strategy that best suits your brand and how you want your users to access the content.
Do you want to achieve massive reach without restrictions? Perhaps the best for your company is an AVOD system. Do you want exclusivity and create a loyal audience subscribed to your content? The best thing would be to bet on the implementation of an SVOD platform. Do you think it is more comfortable for users to pay for content individually? Then you should consider the TVOD system.
Although VOD refers to Video on Demand, these strategies also apply to content streamed Live, such as concerts, conferences, or massive sporting events. Some platforms even combine more than one method, so the user can choose.
A good example is how Hulu in the USA allows its users to access its non-premium content only by registering in exchange for advertising (AVOD) and offers a subscription for users who want to access Premium Content without advertising (SVOD).
In any case, the critical matter is that your content is of excellent quality, is accessible via any device, and that you have customized support ready to answer your questions and issues 24 hours a day. All these services and much more are what we can offer you at Mediastream.