Each #streaming #business model has unique strengths and weaknesses. This is an area Parks Associates covers extensively in our consumer and industry work:
● Subscription Video on Demand (SVOD): Over the top (OTT) video services charge regular subscription fees over weekly, monthly, or yearly periods for access to on-demand content. This business model is best for streamers with a large library of content and/or resources to regularly offer new and original content, but is highly competitive, with viewers likely to cancel subscriptions when that content no longer suits them.
● Ad Supported Video on Demand (AVOD): This describes video services with a library of on-demand content that monetize the video by embedding non-skippable advertisements. This business model is best for those building up a content library and/or that are looking to capture more cost-conscious customers but who still require a pleasant ad experience.
● Transactional Video on Demand (TVOD): This describes OTT video services that allow users to rent or purchase digital video, movies, TV shows, or live programming such as sports events on an individual basis. This business model is best for those offering new and exclusive content but lacks a recurring revenue stream.
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