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UNDERSTANDING AVOD, TVOD, SVOD AND HOW STREAMING PLATFORMS EARN MONEY?

Home  /  Blog   /  UNDERSTANDING AVOD, TVOD, SVOD AND HOW STREAMING PLATFORMS EARN MONEY?

UNDERSTANDING AVOD, TVOD, SVOD AND HOW STREAMING PLATFORMS EARN MONEY?

UNDERSTANDING-AVOD-TVOD-SVOD-AND-HOW-STREAMING-PLATFORMS-EARN-MONEY

OTT is a big market for business. It definitely has a huge potential that it has shown and is showing the potential now. But many of you must ask questions about how to generate revenue out of it and how streaming platforms earn money? There are different ways to get your content monetized. The most common ways used by the OTT platforms to monetize their content are AVOD (Advertisement Video on Demand), TVOD (Transactional Video on Demand), and SVOD (Subscription Video on Demand). People might get confused with the question about the monetization method of these platforms but we are here to make it easier to understand. 

 

OTT is revolutionizing viewing habits and with that, it is also making a huge difference to the money market. These streaming platforms are totally dependent on the internet so hands down they are the most crucial thing to get access to the platform. 

 

HOW DOES AVOD WORK? 

 

AVOD or Advertising Video on Demand as the name suggests is widely dependent on the advertisement in-between or in-start of the video. It is the most basic way to generate revenue. Basically, these platforms provide free content for viewers. 

In these sorts of platforms, the viewers provide their time rather than money. They usually get advertisement space to various companies before and during content to generate revenue. This is the trade of time, you provide your time and they will provide the content for free. 

Some of the instances of AVOD are Facebook, YouTube, Instagram, and the list goes on. 

 

HOW DOES TVOD WORK? 

 

TVOD or Transactional Video on Demand is exactly the opposite of AVOD. The platform generates revenue with the payment made by the viewer since the consumers pay upfront for the content of their choice. This will provide an ad-free experience. So, if you are a person who doesn’t want any interruption in-between the show or the content. 

iTunes and some of the Prime Video contents including some others are an example of TVOD. 

 

HOW DOES SVOD WORK? 

 

SVOD or Subscription Video on Demand follows the basic model of subscription where you have to give a required amount monthly or yearly basis and get access to every content of the platform. It is the platform of those creators who have a bundle of content to release. This is the model that has got a huge share of the OTT platform. 

The major player of this platform is Netflix. It has different subscription amounts for different devices including mobile phones, laptops, computers, tablets, and so on.  

 

Majorly these are the different monetization techniques that any creator can use to get the desired revenue of their creation. Every creator has their own uniqueness and one should go with the techniques that their potential customer prefers. 

If your targeted audience is those who trade their time over their money then AVOD is the option you should go for. Go for TVOD if the targeted audience is exactly the opposite of the AVOD. And if you have a bundle of engaging shows then go for SVOD where you get every content at a flat price. You are good to go with the best model that you need for your audience and the content. 

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