VOD (Video On Demand) Types
SVOD Subscription VOD
Most services will
operate with monthly subscriptions, which generally renews until cancelled by
the subscriber. This is of course a huge contrast to the traditional Cable TV
operator terms, where lock down periods of 6 to 12 months was normal. The "easy
in - easy out" aspect of SVOD is something that is defining these services
and the whole OTT industry in general, which then in return means the services
must work hard to retain customers.
TVOD - Transactional (or Transaction) VOD
TVOD services will
normally try and retain customers by offering attractive pricing on selected
pieces of content, thereby hoping that users will refer to the service for
their general video entertainment needs. TVOD services today is seen to offer
more recent releases, because they can better build the business backwards towards
the rights owners, as a higher revenue per view is obtained. Many TVOD services have been
in the market for some years, but via STBs (set top boxes) and not as pure OTT
services. This is changing.
AVOD - Advertising or Ad-based - VOD
AVOD is a model that is free for the users, in the sense that you will pay with your eyeballs instead of your credit card. Think YouTube as an example.
AVOD
services is today the least explored business model in the OTT market,
especially when looking at premium content. They idea however, that users are
free to tune in and watch, in return for spending time watching ads, is of
course what build television in the first place.
With
the tremendous opportunities for targeting and automating advertising, based on
the whole range of user data inherent in using online channels (as opposed to
traditional TV distribution, where user metric are rudimentary and prone to
errors as you must "survey" users to gain insights), AVOD services
might be something we will see more of in the future, though.
There
are examples of services that operates with mixed models, where the customer
will for example pay a monthly fee, which will grant access to parts or certain
types of content. But where there can still also be extra fees applied to watch
particular pieces of content, or a live sports event for example. The mix model
however have been abandoned by several operators, due to negative customers
reactions - like MTG Viaplay for example.
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