What Is SVOD and What Advantages It Brings to Your Business
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What Is SVOD and What Advantages It Offers to Your Business


The arrival of the internet and technological advances have changed the way we engage with video content. It has also given rise to innovative solutions that allow viewers to watch videos whenever and wherever they want. According to WordStream, more than 500 million hours of videos are watched on YouTube every day. Different video types enable viewers to get all the information they need in a matter of minutes. That is why they would rather spend time watching videos than reading social media posts, according to research.

SVOD services have been all the rage for years, given that they allow users to consume content on their own terms. There is no need for them to rush home to catch their favorite show or movie. These services experienced a peak in 2020, with more than 500 million subscribers. But they are doing pretty well this year as well. Statista predicts that revenue in the SVOD segment is set to reach over $70 million in 2021.

What’s more, experts estimate that SVOD will continue to expand in the upcoming years. In fact, the number of users is expected to amount to more than one billion by 2025. Given that the future looks bright for SVOD, many businesses have started to consider branching out into this industry.

But, what is SVOD exactly? And does it have any benefits? You’ll find answers to these questions and more in our article.

What Is SVOD?

SVOD stands for subscription video on demand and refers to streaming services that provide access to their content after viewers pay a monthly fee. For instance, users need to subscribe to Netflix in order to watch its extensive library of TV shows, movies, and docuseries.

Major streaming service providers usually offer a free trial to their first-time users, enabling them to watch their videos without paying for a period of 14 or 30 days. This allows those customers to see whether the available content is to their liking. After that trial period passes, viewers need to pay for a subscription either monthly or annually. Of course, the subscription gives them unlimited access to the platform.

In a way, SVOD resembles TV packages in that it lets viewers consume as much content as they desire for a set price. The huge advantage of subscription video on demand is that it offers full freedom to users. Namely, if they want to opt out and stop paying for a service, they can do so as they aren’t tied into a long-term contract.

However, this means that SVOD providers face a difficult challenge. They constantly need to come up with exclusive content or better pricing schemes. Nevertheless, it seems that these providers aren’t struggling at all. Many innovative online services have found their way into people’s homes, helping them unwind and forget about the daily grind.

Now, SVOD isn’t the only business model available to brands. And to ensure there’s no confusion, we’ll mention the other two models and what they entail.

SVOD, AVOD, TVOD… Is There a Difference?

Yes, there is! SVOD significantly differs from these two widespread monetization models:

  1. AVOD (advertisement-based video on demand) where companies generate revenue by adding ads to their content. 
  2. TVOD (transactional video on demand) where viewers buy content on a pay-per-view basis.

As you can see, businesses have many ways to generate revenue thanks to technological advances. SVOD, in particular, has revolutionized the way we view and consume content. We don’t have to wait for weeks or months to watch the next episode of our favorite TV show. Nor do we need to wait for reruns of major sporting events. Today, we can find internet clips almost as soon as the content becomes available.

So, the catch-all term for all of the above business models is video on demand (VOD). This innovative technology allows us to get our content when we want, and not when an owner decides to deliver it.

If you have premium content that your customers will find valuable and relevant, you can use the SVOD model to get it out to the world. This will set up an additional revenue stream for your business. Only when users subscribe to your service will they get access to content you’ve prepared for them.

What to Monetize With SVOD

Monetizing online videos with SVOD is a great solution for many businesses. However, not every piece of content is meant to be monetized. People won’t pay to watch videos that bring no meaning into their lives or don’t teach them a thing or two about business, life, or other important areas. Therefore, use the SVOD model when you create engaging and educational videos that will transform your viewers’ lives for the better.

What’s more, you have to offer premium content to attract viewers. If they can find your videos on the internet, then they won’t feel the need to subscribe to your service. The fact that your content is only available through SVOD will encourage them to pay and become your subscribers.

Here are types of content that work well with SVOD.

Live Entertainment

Generally speaking, TV shows and movies are enormously popular on SVOD platforms, but they aren’t your only choice. With people becoming more attached to their devices, streaming videos for entertainment has become more popular now than ever before. Specifically, people want to consume different forms of live entertainment.

Indeed, viewers are streaming concerts, poetry readings, theater shows, and others. There is no need to go on a tour to reach your audience anymore. As people are glued to their screens, you can set up any show, record it, and offer it to your viewers with the help of SVOD.

Sports Games

Live streaming sporting events is another way to catch people’s attention. Everyone likes the excitement these events bring to the table. So, you shouldn’t miss out on the opportunity to generate revenue if you have matches to offer.

For instance, viewers can subscribe to watch a team’s game on demand or live. Using SVOD is particularly useful if you manage a small team that doesn’t get featured on ESPN or other major sports television networks.

Online Teaching

People don’t need to visit courses in person in order to expand their knowledge and expertise nowadays. They can just find a SVOD platform, subscribe, and watch educational content from the comfort of their home. So, it won’t be a bad idea to establish your brand as a thought leader in the field and start charging for your lessons.

Now that you know what kind of content is suitable for SVOD, let’s see what kind of advantages come with this monetization model.

The Advantages of SVOD

If you want to make sure that the SVOD business model is for you, we’ve prepared some advantages that will certainly get you on board. Let’s check them out!

  1. Revenue Stream: This is probably one major benefit of SVOD. People will pay a fee either monthly or annually to access your content. As a result, you’ll have a steady revenue stream for that specific period. You can count on that money and use it to provide better content for your audience.
  2. No Price Restrictions: The price of your plans will depend on the value you deliver on your SVOD platform. So, make sure to create premium videos that will justify the fee you set for your subscribers.
  3. Loyal Customer Base: Your viewers can easily become committed followers if you provide relevant and valuable content to them. This customer base can help you grow your business and reach a wider audience who will be interested in paying a fee to get access to your videos.
  4. Exclusivity: Subscribers will feel like they are a part of a tight-knit community because they’re watching videos that aren’t available to everyone. This makes your content more valuable since there are limited alternatives to access it.


If your business is connected to sports, fitness, education, or entertainment, then SVOD is something you should definitely consider. It can help you monetize your video content, grow your follower base, and have a steady revenue stream.

However, if subscription video on demand isn’t suitable for your business, don’t worry! You have AVOD and TVOD at your disposal as well.