The internet has revolutionized how we access video and audio content. Gone are the days of switching between TV channels; now, we’re able to choose what we want to watch from a catalogued list. The umbrella term for this is VOD platform and there are multiple revenue models for businesses to choose from if they go down this route. AVOD (Advertising Video on Demand) and SVOD (Subscription Video on Demand) are the top two.
What Is SVOD (Subscription Video On Demand)?
Subscription video on demand allows users to pay a regular fee and, in return, receive unlimited access to a massive catalogue of audio or video content for that duration. This OTT video monetization model is quite similar to traditional TV packages, but the content is much more curated and can be categorized for niche industries or general audiences.
What Is AVOD (Advertising Video On Demand)?
AVOD refers to ad-based video on demand. In this OTT monetization method, video content can be accessed by users for free. However, like broadcast television, they will need to sit through targeted ads to be able to access that content, and this becomes the revenue stream for the platform owner. YouTube is by far the best known example of AVOD advertising, where the revenue from ads are used to offset the costs of production, hosting and delivery.
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