End of day quote as of: 2023-05-25
BRVO: $0.8500 (0.1599)
SVOD (Subscription Video-On-Demand) and AVOD (Advertising Video-On-Demand) are two popular models for streaming video services. SVOD services, such as Netflix and Amazon Prime, rely solely on subscription fees, while AVOD services, such as Hulu and Peacock, generate revenue through advertisements. In this blog post, we’ll discuss why AVOD is the way to go for streaming video services.
Firstly, AVOD services offer more accessible access to content. While SVOD services offer exclusive content that can only be accessed by paying subscribers, AVOD services offer a wider range of content that is freely available to anyone with an internet connection. This accessibility is especially important in countries with low income, where people may not be able to afford subscription fees.
Secondly, AVOD services can provide a better user experience. Many SVOD services use ad-free models, but this can result in a less engaging experience for viewers. With AVOD, advertisements can be creatively integrated into the content, providing a more interactive and engaging viewing experience. Additionally, many AVOD services offer a “freemium” model, where users can access a limited amount of content for free but can unlock more by watching ads or subscribing.
Thirdly, AVOD services can provide advertisers with more opportunities to reach their target audience. With more people accessing free content on AVOD services, advertisers have a larger pool of potential customers to target. Additionally, AVOD services can provide more detailed data on viewer behavior, allowing advertisers to create more targeted and effective ads.
Finally, AVOD services can provide a more sustainable revenue model for content creators. While SVOD services can offer high revenue streams, they rely heavily on subscriber growth, which can be unpredictable. With AVOD, content creators can generate revenue through advertising, providing a more stable revenue stream.
In conclusion, while both SVOD and AVOD have their advantages, AVOD is the way to go for streaming video services. AVOD services offer more accessible content, a better user experience, more opportunities for advertisers, and a more sustainable revenue model for content creators. As the streaming video market continues to grow and evolve, AVOD services are poised to become increasingly popular among viewers, advertisers, and content creators alike.