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What is SVOD? A Complete Guide for Subscription Video On Demand Service

Everything you need to know about subscription video on demand (SVOD)

What is SVOD? A Complete Guide for Subscription Video On Demand Service

Tuesday March 10, 2020,

6 min Read

What Does SVOD Mean?

While traditional media companies had been ad-driven without much interaction with the audience, OTT companies follow subscription video monetization models to earn steady revenue. It is in this context that SVOD platforms are breaking into new frontiers.

SVOD stands for subscription video on demand. It is a service in which users have full control over the subscription and have the liberty to watch any one of a large collection of videos at any time at their convenience.

What Are The Advantages of Starting an SVOD Service?

Here are the advantages of integrating the SVOD business model for your video streaming platform.

  1. Predictable Revenue Stream - Subscription video services create a steady stream of revenue for a pre-defined period of time.
  2. Convenience - As compared to AVOD or pay-per-view models, content is more conveniently accessible on the SVOD business model without interruptions.
  3. No Price Restrictions - Since pricing is wholly dependent on the value delivered over the platform, the subscription can be priced without external limitations.
  4. Loyal Customer Base - While premium content is offered on the SVOD model, the subscribers become committed followers of your platform.
  5. Customer Inertia - Subscription services induce users to stay on the platform and the urge to cancel it is usually slower than to continue the plan.
  6. Greater Potential For Diversification - In case of continuous usage on a platform, it is easier to up-sell and cross-sell other products and services.
  7. Exclusivity - Premium content available exclusively on your platform makes it valuable enough because of limited alternatives to access and watch elsewhere.

Why is SVOD Important For Your Business?

SVOD Important For Your Business

According to a report by PwC, companies must create fans or active users who share the same ideas, interests, and experiences, and return frequently to the brand’s properties

So how is subscriber loyalty achievable for companies? And what good does it do for a business?

Direct-to-consumer success depends on a user-centric culture including considering viewer insight in tactical and strategic decisions. The accessibility and availability of unique content are highly valuable to today’s consumers who have come to expect it as a matter of right!

Subscription services present excellent ways to earn profit from monetizing video content instead of simply offering it over and above basic content marketing. As an extra stream of income, it will always strengthen your bottom line. Further, it works as a channel to connect with your target audience, complementing the main business.

Revenue in the Video Streaming (SVOD) Segment Amounts to US$25,894m in 2020.

Revenue in the Video Streaming

Here is how you can use SVOD:

  1. Build a subscription video on demand platform for your own business and brand to bring direct income from exclusive videos.
  2. Create a dynamic library of videos that are updated in line with user trends which becomes an incentive for them to hit that subscribe button.
  3. Consistently upload content to be discoverable and to engage with existing subscribers.
  4. Promote your video subscription platform with an integrated social media strategy to the targeted audience.

Companies That Leveraged The SVOD Model Successfully

subscription video on demand


The pioneer of video streaming in entertainment, Netflix provides unlimited streaming of TV shows, movies, comedy specials and original shows. While it continues to lead the pack in terms of selection, quality and performance consistency, its SVOD model is being challenged by ad-based business models that deliver free content.

Disney +

One of the most anticipated streaming services, Disney owns a large number of exclusive properties. At $7 per month, it is cheaper than many other SVOD services on the list. With content available in 4K resolution with HDR, Disney Plus and compatibility with up to four devices simultaneously, it is arguably the best video subscription platform in its range.

Sling TV

Intended as an option to address the grey area between the highly exclusive shows on SVOD streaming services like Amazon and the traditional pay-TV services, it includes sports networks like ESPN and NFL Network. After a one-week free trial, a listing of the channels included as add-on packages start at $5. There is no contract or set-top box rental fee.

DID YOU KNOW: Global OTT Revenue Jumped 33% in 2018 to $68B

How To Start A Subscription Video On Demand Service?

With the global user penetration rate for SVOD expected to hit 16.9% by 2024, it is not long before TV broadcasting is done away with. All pumped up to start your own SVOD platform?

How to start a subscription video on demand service

Here is how to start your own SVOD:

1. Identify A Niche And Build Your Brand In It As An Expert

Doing what you do well could be the right point to start your journey in building a subscription video on demand platform. Producing content for targeted audiences requires a clear understanding of viewing trends and audience watch history. Finding a niche also simplifies the process of developing your brand and establishing yourself as an expert.

2. Build A Customized Website For Your Brand

A website that showcases your brand promotes the business in the most organic way possible. The website must be capable of streaming to users worldwide and so be scalable to support high traffic. Use customer-focussed website copies that resonate with website visitors to become an identifiable brand.

3. Zero In On A Monetization Model Suitable For Your Business

Valuing your content is the basis of deciding the model for monetization. Choose the appropriate revenue strategy for your video subscription business by understanding your buyer’s persona and the demand for your content. Provide them an option to get a feel of your content before getting them to subscribe. Hybrid models can be customized depending on targeted revenue.

4. Formulate A Strategy For Mobile Applications

Optimizing your website for mobile viewing and including mobile apps in your distribution strategy goes a long way in widening the reach of your video subscription platform. Creating apps compatible with Android and iOS as well as Smart TV platforms can even enhance ad revenues, if AVOD-based model is chosen.

5. Begin Marketing Your Platform And Integrate It With Social Media. 

Integrating your video subscription platform with social media is one of the most basic forms of marketing. With quality content and strategic placement, get the netizens notice your platform on their favourite social media. To build a subscription video on demand platform is only half the battle won as marketing is the key to getting it to the masses.


Well, integrating all the technologies and launching your own video subscription service may be an uphill task, depending on your expertise. However, creating a unique Netflix-style platform is a cakewalk when you team up with a streaming platform building service with a highly skilled development team and customizable features. While subscription services require users to trust the platform for reliable and value-for-money content that streams at HD clarity, a hybrid model can be leveraged for revenue. This makes it important for you to launch subscription video platform that provides flexibility in terms of the player, marketing and monetization.