In the rapidly evolving landscape of digital content, choosing the right monetisation strategy is essential. Two of the most prominent models are SVOD (Subscription Video on Demand) and AVOD (Advertising Video on Demand). Both are widely used by platforms to deliver content, but each has distinct features that cater to different user experiences and business objectives. Understanding these video-on-demand models will help content creators, marketers, and platforms decide which approach best fits their goals and audience.
SVOD (Subscription Video on Demand) is a video-on-demand model where users pay a recurring subscription fee (typically monthly or annually) for access to a library of content. The content is usually ad-free, creating a premium viewing experience for users who are willing to pay for uninterrupted access. Popular platforms like Netflix, Amazon Prime Video, and Disney+ operate under the SVOD model.
With SVOD, content providers benefit from consistent, recurring revenue, which provides a stable income stream. Additionally, because SVOD services don’t rely on advertisements, the platform can focus entirely on content quality and user experience, which drives subscriber retention and acquisition.
👉Read More: What is SVOD (Subscription Video on Demand)? A Comprehensive Guide
AVOD (Advertising Video on Demand) is another video-on-demand model, but unlike SVOD, it allows users to access content for free in exchange for viewing advertisements. AVOD platforms generate revenue by displaying ads during content playback, which are served based on viewer demographics, interests, or other targeting data. Examples of AVOD services include YouTube, Hulu (with ads), and Peacock.
AVOD offers viewers the ability to watch content without paying a subscription fee. However, this comes at the cost of watching ads, which is the key revenue-generating mechanism for platforms operating under this model. AVOD can scale more rapidly due to the fact that it doesn’t require users to pay upfront, making it an appealing choice for platforms targeting a broader, price-sensitive audience.
While both SVOD and AVOD are part of the broader video-on-demand landscape, they differ significantly in terms of monetisation, user experience, and content distribution:
Both SVOD and AVOD have their own set of advantages and challenges for both content providers and viewers:
👉Read More: What is AVOD (Advertising-Based Video on Demand)? Everything You Need to Know
The decision between SVOD and AVOD depends on several factors:
Some platforms are also adopting hybrid models, combining the benefits of both SVOD and AVOD, offering multiple tiers with different access options.
To assess the success of your SVOD or AVOD platform, track the following key metrics:
Both models require continuous monitoring and adjustments to ensure optimal performance and profitability.
👉Read More: What is VOD Streaming? A Comprehensive Guide to Video on Demand
SVOD and AVOD are two prominent video-on-demand models, each with its unique advantages and challenges. SVOD provides a premium, ad-free experience for paying subscribers, making it ideal for high-quality, exclusive content, while AVOD allows content to be accessed for free, with ads generating revenue in exchange. Both models have their place in the streaming industry, and content providers need to carefully consider their target audience, content strategy, and monetisation goals when choosing between the two.
As the streaming market evolves, many platforms are exploring hybrid models that combine the benefits of both SVOD and AVOD, offering viewers multiple options to consume content while maximising revenue. Understanding the differences and nuances between these two models will be essential for businesses looking to succeed in the competitive world of digital content.
SVOD is a subscription-based model where users pay for content, and there are no ads. AVOD offers free access to content in exchange for ads.
Yes, many platforms use a hybrid model, offering both SVOD (ad-free) and AVOD (ad-supported) options to cater to different user preferences.
It depends on your content and audience. SVOD can generate predictable, recurring revenue from paying subscribers, while AVOD can scale quickly by reaching a large audience and generating revenue through ads.
For SVOD, track metrics like subscriber growth and retention rates. For AVOD, focus on metrics such as ad impressions, click-through rates, and revenue per thousand impressions.
Learn the three fundamental design traits that make great apps great.
Our current digital age has many of us constantly consuming mobile apps. Alongside the massive consumer appetite for apps comes massive competition, and while that’s always a good thing to keep us on our toes, for some, entering this world from a design standpoint can be a bit intimidating. If you’ve made that decision to build an app, setting yourself apart is crucial to your success.
Three of the most prominent traits of any app design are beautiful interfaces, incredible simplicity, and super-easy navigation. When good apps have these three implemented well, your users will tell their friends and colleagues. Your design will lend to its ease of use and drives willingness to keep coming back to the app.
Let’s look at a few tips to get you started.
Setting Goals: Before jumping onto the keyboard to begin your build, think about a few of these questions first.
Now, this is not just an app lesson, this is a great life lesson in building any business. By setting clearly defined goals, you will have a set reference point to always go back to keep grounded and focused to stay on track. All of this plays into the design choices you will make later on.
Planning: Dive a little deeper hereafter sketching out a rough draft of your project scope. Dig in on how your app is going to generate revenue (consumable IAPs, subscriptions, etc.). Think of what you need your app to do and work out a rough path of ideas in mind and how to get those ideas working in your app. This stage should be thought of as drawing out a road map of your apps functions, audience, and a rough guide of mini-steps on how to get there.
Research: Go online, in-person, and talk to as many friends and colleagues about your app if you can. This is a vital part of your app build project.
👉Read more: Design Best Practices for Paywalls
Wireframe Your App: This is your draft of your apps visual architecture. All of your visual sketches and goals that you put down on paper initially go here to create a basic “blueprint” of what your app will look like and how it is going to function.
The Design: Now is the time to start looking at the actual design of your app. This is where you will need to create appealing, yet realistic mock-ups.
Hiring a Design Agency: A final option in this space is getting the complete package where you kick back and let someone else take over the reins to build your app from scratch.
Navigation Should Always be Easy: A great app is nothing without easy navigation. Your design must always have navigation in mind at each step.
Simplify the Design, Then Simplify it Some More: Minimal design is often more about removing features than adding them.
Colors and Fonts: Be mindful here and understand that color psychology will make a huge impact.
👉Read more: Cross-Platform App Development
You’re now ready to take that leap and create stunning app designs that will make your product memorable. While it may look a bit complex at first, the app design process can be made easier and more manageable by following the tips mentioned here. Apps are usually a huge undertaking when you consider the engineering effort that goes into each one of them. Do not make the mistake of letting bad design get in the way of great engineering.
Nami understands how important your app is to you and is by your side at every step along the way. Design equally important to us as we enable app developers to grow their revenue with Nami-powered in-app purchases and subscriptions.
As streaming services continue to reshape the media landscape, SVOD (Subscription Video on Demand) has emerged as one of the most popular and profitable monetisation models. SVOD allows users to pay a subscription fee in exchange for access to a library of on-demand video content, without the interruptions of ads. This model has become synonymous with leading streaming services, offering a seamless, ad-free viewing experience. But how does SVOD work, and why has it become so successful? In this guide, we’ll explore the key features of SVOD, its benefits, and how businesses can leverage this model to maximise revenue.
SVOD stands for Subscription Video on Demand. It is a type of streaming service that offers content to users in exchange for a recurring subscription fee. Unlike AVOD (Advertising Video on Demand), where users watch ads to access content for free, SVOD platforms provide an ad-free experience, making them highly attractive to viewers who want uninterrupted access to their favourite shows and movies.
Under the SVOD model, users pay a regular subscription fee—typically monthly or annually—to access a vast library of content, which can include movies, TV shows, documentaries, and exclusive original content. This model is favoured by many leading streaming services, providing a steady and predictable stream of revenue for content providers.
👉Read More: OTT Monetisation: Strategies to Maximise Revenue in 2024
SVOD services operate by offering users unlimited access to content for a fixed subscription fee. The process is simple:
The SVOD model is typically used by platforms that aim to build a loyal customer base over time. Subscriptions provide predictable, recurring revenue, which is especially beneficial for content creators and distributors looking for financial stability.
The SVOD model offers numerous advantages for content creators and distributors looking to monetise their videos and films:
One of the biggest benefits of SVOD is the predictable and steady income it generates. Subscription fees are recurring, meaning providers can count on consistent revenue month after month. This stability allows content providers to plan and invest in high-quality, exclusive content.
SVOD platforms typically have high user engagement rates because subscribers are invested in the content they access. The more relevant and exclusive the content, the more likely users are to stay subscribed. This also helps to reduce churn (the rate at which users cancel their subscriptions).
Unlike AVOD platforms, SVOD services offer an ad-free experience. This is appealing to viewers who prefer uninterrupted content and are willing to pay for it. For content providers, this also means they can charge a premium for access to exclusive, high-quality, ad-free content.
With SVOD, content providers have full control over pricing and can adjust subscription rates based on factors like audience demand and content exclusivity. Additionally, offering tiered pricing models (e.g., different levels of access or benefits) can help cater to different viewer preferences and increase revenue.
👉Read More: SVOD Advertising: Maximizing Revenue in Subscription Video on Demand
The SVOD model appeals to consumers for several reasons:
The most obvious appeal is the ad-free experience. With more viewers seeking uninterrupted content, SVOD platforms offer a compelling value proposition by removing the disruptive nature of ads.
SVOD services allow viewers to watch their favourite content whenever they want, without being tied to a specific schedule. The ability to stream content on-demand gives consumers greater control over what they watch and when they watch it.
Platforms like Netflix, Amazon Prime, and Disney+ have made a name for themselves by offering exclusive original content that can’t be found anywhere else. Consumers are increasingly drawn to SVOD services because of their ability to provide unique and original programming.
SVOD services are available across a wide range of devices, from TVs and smartphones to tablets and gaming consoles. This makes it easy for users to access content at home, on the go, or anywhere with an internet connection.
To successfully implement and scale an SVOD service, content providers should consider the following best practices:
Offering different pricing tiers can help attract a wider audience. Consider offering basic, premium, and family plans, giving users the flexibility to choose a plan that suits their needs and budget. Additionally, offering free trials can encourage potential subscribers to experience the service before committing.
Exclusive content is one of the biggest drivers of SVOD success. To retain existing subscribers and attract new ones, invest in creating or acquiring high-quality, exclusive content that users cannot find elsewhere.
An easy-to-navigate platform, intuitive interface, and high streaming quality are essential for creating a positive user experience. The more seamless and enjoyable the viewing experience, the more likely users are to remain subscribed.
To keep users engaged, regularly refresh your content library with new titles, shows, and movies. This helps to ensure that subscribers have fresh content to look forward to, keeping them engaged and reducing churn.
To determine how well an SVOD service is performing, providers should track key performance indicators (KPIs):
The number of new subscribers is a key metric for measuring the success of an SVOD service. Growth indicates that the platform is appealing to its target audience.
Retention rate measures how many subscribers continue to pay for the service after their initial subscription. High retention rates indicate that users are satisfied with the content and experience, while low retention rates may indicate content or user experience issues.
ARPU helps determine how much revenue is generated per user, which can be a good indicator of pricing and subscription tier performance. Providers can use this metric to adjust pricing strategies and maximise revenue.
Churn rate measures how many users cancel their subscriptions within a given period. Keeping this rate low is essential for maintaining a healthy subscriber base.
👉Read More: SVOD vs AVOD: Understanding the Key Differences in Video on Demand Models
SVOD (Subscription Video on Demand) is one of the most successful and sustainable monetisation models in the streaming industry. It offers predictable revenue for content providers while giving users the flexibility and ad-free experience they desire. By offering exclusive content, focusing on user experience, and continuously monitoring key performance metrics, SVOD platforms can grow and thrive in an increasingly competitive market.
As consumers continue to demand more control over their viewing experiences, SVOD will remain a dominant force in the digital content landscape. Whether you’re a content creator, distributor, or marketer, understanding the power of SVOD will be essential for staying competitive in the rapidly evolving world of streaming.
SVOD (Subscription Video on Demand) offers content to users in exchange for a recurring subscription fee, without ads. AVOD (Advertising Video on Demand), on the other hand, provides free access to content but includes ads during viewing.
To increase retention, focus on offering exclusive content, keeping the content library updated, and delivering a seamless, enjoyable viewing experience. Regularly engaging with your audience can also help improve retention rates.
Yes, many platforms use a hybrid model, offering both subscription-based (SVOD) and ad-supported (AVOD) content to cater to different user preferences.
Key metrics include subscriber growth, retention rates, average revenue per user (ARPU), and churn rate. Monitoring these KPIs can help you optimise your strategy and improve the performance of your SVOD service.
As streaming platforms continue to dominate the media landscape, OTT monetisation has become a central focus for content creators and advertisers alike. OTT services offer an on-demand, flexible viewing experience, and monetising this content effectively is crucial for sustaining growth. Whether you’re offering free content supported by ads or premium subscriptions, finding the right monetisation model can help unlock new revenue streams and ensure long-term success.
OTT monetisation refers to the various methods content creators and distributors use to generate revenue from their Over-the-Top (OTT) platforms. These platforms deliver video content over the internet, bypassing traditional TV and cable services. OTT monetisation allows content providers to profit from video streaming services by leveraging a combination of advertising, subscriptions, and transactional models.
The monetisation approach depends on the platform's audience, content type, and goals. For example, some platforms use a subscription-based model (SVOD), where users pay for access to content, while others rely on advertising-based models (AVOD), where ads are shown to viewers in exchange for free access.
👉Read More: The Power of CTV Advertising
There are several monetisation models that OTT platforms can adopt, and the right choice depends on the content, audience, and business objectives. Here are the most popular models:
In the SVOD model, viewers pay a recurring fee to access content. This is the most common monetisation method for platforms offering premium, exclusive, or high-quality content. Examples include services like Netflix, Disney+, and HBO Max. This model provides stable and predictable revenue, especially if you have a loyal subscriber base.
AVOD allows platforms to offer free content in exchange for ad impressions. Ads are typically displayed at various points during the content, such as pre-roll, mid-roll, or post-roll. This model is often used by platforms with large audiences but no paywall, such as YouTube and Peacock. AVOD can be very lucrative if you have high viewer engagement and can target specific demographic groups effectively.
With TVOD, users pay for each piece of content they view, such as purchasing or renting movies or episodes. This model works well for exclusive or newly-released content that users are willing to pay a one-time fee to access. TVOD is often used by platforms like Amazon Prime Video for rentals and purchases.
Many OTT platforms combine SVOD and AVOD (SVOD+AVOD), offering users the option of a subscription that is ad-free or a free tier that includes ads. This flexibility allows platforms to cater to different viewer preferences and maximise monetisation opportunities. Hybrid models can boost user acquisition and retention by offering multiple options based on individual preferences.
Selecting the most suitable OTT monetisation strategy depends on several factors, including the type of content, audience engagement, and business objectives. Here are some key considerations:
If your audience consists of highly engaged users who prefer ad-free experiences, SVOD may be the best approach. However, if your platform has a large, diverse audience that prefers free access to content, AVOD can help you maximise revenue through ads. A hybrid model can cater to both paid subscribers and free viewers.
The type of content you offer will also influence the monetisation model. High-value, exclusive content like original shows and films may work best with SVOD. On the other hand, general or ad-supported content works well for the AVOD model, as you can generate significant revenue from large numbers of viewers.
Consider your platform's long-term goals when selecting a monetisation strategy. If your goal is to generate immediate revenue, AVOD may be ideal. If you are looking to build a sustainable, long-term subscriber base, SVOD will help generate steady income. Hybrid models allow you to balance short-term ad revenue with long-term subscription growth.
Efficient ad inventory management is essential to maximising OTT monetisation through advertising. By optimising ad placements, you can increase ad revenue without compromising the viewer experience. Here’s how to do it:
DAI allows ads to be inserted dynamically based on user behavior, location, or device type. This improves ad relevancy, reduces wasted impressions, and maximises ad revenue by targeting viewers more accurately.
With programmatic advertising, ads are sold and placed automatically using data and algorithms. This allows for better ad targeting and more effective use of your ad inventory. By leveraging programmatic platforms, you can optimise your OTT ads for maximum reach and revenue.
Frequency capping limits how often a viewer sees the same ad, reducing ad fatigue and preventing users from feeling overwhelmed. Effective frequency management can improve the viewer experience and increase ad effectiveness.
👉Read More: Creating a Winning CTV Strategy: Monetizing Your Content
Use viewer data to tailor ads to specific audience segments. The more relevant the ads, the higher the chances of engagement and conversions. Leverage demographic, behavioral, and geographic data to ensure you are serving the most relevant ads to each viewer.
Offering different subscription plans allows users to choose the level of access that best suits their preferences and budget. Consider offering both SVOD and AVOD tiers, giving users the option of paying for an ad-free experience or watching free content with ads.
Premium, high-quality content is essential for both attracting new viewers and retaining existing ones. Focus on creating engaging, unique content that aligns with your audience’s interests to drive long-term subscriber growth.
To effectively measure the success of your OTT monetisation efforts, focus on key performance indicators (KPIs) such as:
ARPU measures the average revenue generated per user, allowing you to assess the profitability of your SVOD, AVOD, or hybrid models.
The VTR measures how many viewers watch the entire ad. This metric is critical in assessing the engagement and effectiveness of AVOD ads.
Tracking the number of new and retained subscribers helps determine the effectiveness of your SVOD strategy. Sustained growth is a strong indicator that your content is resonating with your audience.
Monitor how viewers interact with your ads, including click-through rates (CTR), engagement with interactive ads, and conversion rates. These metrics provide valuable insights into the success of your advertising campaigns.
👉Read More: What is SVOD (Subscription Video on Demand)? A Comprehensive Guide
As OTT platforms continue to evolve in 2024, OTT monetisation remains a key focus for content providers and advertisers. By adopting the right monetisation models, optimising ad inventory, and following best practices, you can effectively maximise revenue from your OTT platform. Whether through SVOD, AVOD, or hybrid approaches, the key to success lies in understanding your audience, offering engaging content, and using data-driven strategies to optimise your monetisation efforts.
By staying ahead of trends and leveraging advanced ad solutions, you can turn your OTT platform into a highly profitable venture that drives both short-term gains and long-term growth.
The main OTT monetisation models include SVOD (subscription-based), AVOD (ad-supported), and TVOD (pay-per-view). Many platforms also use hybrid models to combine these methods.
Optimise your OTT ad inventory by using dynamic ad insertion (DAI), programmatic advertising, and frequency capping. These strategies help ensure your ads reach the right audience without overwhelming viewers.
SVOD (Subscription Video on Demand) generates revenue through subscriptions, offering ad-free content. AVOD (Advertising Video on Demand) generates revenue by showing ads to viewers who access content for free.
Measure success in OTT monetisation by tracking metrics like revenue per user (ARPU), view-through rate (VTR), subscriber growth, and ad engagement rates. These KPIs help gauge the effectiveness of your monetisation strategy.
If you've received this Play Console message: "We've detected this app uses an unsupported version of play billing". Here's the fix.
If you received the following message from the Google Play Console, you are not alone:
We’ve detected this app uses an unsupported version of play billing
Chances are your app is on an unsupported version of Play Billing. Google announced that by November 1, 2021 all new apps and updates to existing apps must use Billing Library version 3 or newer.
Check your project’s build.gradle file. Apps must import Play Billing Library version 3.0.0 or higher. Please note, these dependencies would only show up for APKs that require the permission com.android.vending.BILLING.
If you are on the latest Play Billing Library but still see the message, you will need to check your AndroidManifest.xml. Ensure it contains an entry for com.google.android.play.billingclient.version
According to Google, the entry might not be present if the manifest attribute is being dropped during manifest merging. You can check your manifest merge settings.
👉Read more: Set Up IAP Google Play Android App
If you are on Play Billing Library V1 / AIDL, Google has a migration guide for upgrading to Play Billing Library version 3. In short, there are major code changes you will need to make to your project.
Google regularly introduces new functionality and APIs as part of the Play Billing Library. In fact, upgrading to version 3 won’t mean you’ll never again see the message about an unsupported version of play billing.
You can future proof your Play Billing implementation. With Nami, we manage the Play Billing implementation and you get to focus on your app. No server-side code is required and the client SDK is extremely easy to adopt. Our generous free tier provides reasonable limits and lots of features not found in homegrown implementations.
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👉Read more: Play Billing Deferred Proration Mode
If you are an app developer or company with mobile apps and are experiencing unprecedented traffic, plummeting engagement, or uncertain revenue what do you do?
I worked at Apple during the 2008 financial crisis. Steve Jobs made it crystal clear to employees, customers, and investors that Apple would invest through the downturn. Instead of layoffs, Apple increased R&D spending and created a robust product pipeline for the eventual economic recovery.
History defines memorable leaders by their ability to:
It’s that second one that creates a truly historic leader, who has the ability to think strategically in the midst of a chaotic, fast changing environment.
We are working with a diverse group of companies managing the crisis while prepping their future. Let’s explore three examples:
Company #1: Unprecedented Traffic
Once-in-a lifetime traffic generated by their product which empowers people who work from home. Unlike other companies, they are managing the current demand, allowing for strategic planning for the eventual economic recovery.Unique data about the tsunami of users, provide insights why their users register, convert, and churn, so they can optimize the customer experience and boost revenue.
Company #2: Plummeting Engagement
A media company finds itself suddenly with a subscription product in stasis, because it is built around live audiences. Even though engagement is down, it’s not zero. They too realize that they have an opportunity to use this moment to gather new insight and learn how their business is impacted by a Black Swan event.
Company #3: Entering the Unknown
A new streaming service is preparing to launch. While managing the day-to-day priorities to get to market, their strategic thinking has already paid off. They are striking the right balance between what to build and what to buy externally. Many diverse tools are needed for their arsenal to help adapt and iterate quickly as they launch in a distressed economy.
👉Read more: 50 Mobile App Growth Hacking Tactics You Can Try Today
Imagine if Apple had pulled back on R&D in 2008 along with layoffs. It’s hard to know for sure, but it’s not difficult to imagine a few years of stagnate products giving competitors an opportunity to catch up.
As a friend of mine often says, hope is not a strategy. As responsible leaders, we have a duty to think strategically and act decisively so we can help our companies rebound and our teams prosper in a stronger position than before.
Are you going to join the ranks of the smart companies who are investing through the moment or….becoming stuck by the moment?
If you are an app developer or company with mobile apps and are experiencing unprecedented traffic, plummeting engagement, or uncertain revenue…we are ready to help.
We have pioneered a solution that deploys Machine Learning (ML) models to increase subscriptions conversions, boost app revenue, and reduce churn. The models run on-device, so they are tailored for your app’s unique usage patterns, optimize your experience in real-time, and protect end user privacy.
If your traffic is high, Nami’s algorithms for iOS and Android can help accelerate the trends you are already seeing in engaging, converting, and retaining paying customers in your app.
If engagement is dropping, Nami can help you understand the key engagement signals that show a user is about to cancel their subscription so you can re-engage them to reduce churn in your app.
If you’re not onboarding many new users right now, Nami can still find cohorts that are interested in your product. Nami provides data and insights to help you figure out who those users are and use our ML algorithms to help you convert them into paying customers.
At a time where we’re all focused on our family and community, we make it easy to get started quickly. Our Nami SDK drops in and starts passively gathering anonymized training data. This means Nami is learning for your app while you focus on what’s most important.
👉Read more: App Growth Hacking Techniques for the Holidays
Indie developers are having an especially challenging time right now. I know many of us are trying to support our favorite coffee shops, restaurants, and other small businesses. I’d ask that you consider also supporting one of the multitude of indie app developers who depend on the app economy.