By the end of 2015, the SVOD market is set to reach 161 million homes as per a recent report from Research and Markets. If we look at their predictions for forthcoming years, the growth is even more apparent. By 2020, this figure will reach 306 million, with a revenue of $26,794 million; a more than two-fold increase on current revenue figures!
SVOD is the revenue model for tomorrow and has proved to be the stepping stone for numerous streaming success stories like Netflix and Hulu. So, here are a list of things all SVOD services must follow to gain bigger market shares and retain more subscribers.
Stand Out : One of the best ways of securing high subscription levels for SVOD is to provide content that is not already out there; like Smithsonian Networks did with their nature and wildlife content.
Know Your Audience : Every provider of SVOD needs to know their viewer demographic; what age group are they appealing to? What geographical regions are they reaching? What is the average budget of their viewers?
Choose Pricing Carefully : Once a provider has established what their customer looks like, they will be better informed about what customers are likely to be willing to spend on content. There is little point charging at a higher rate than any of the demographic can afford.
Keep Things Simple : Subscription terms should always be simple and transparent so that viewers will not be deterred. It’s a good idea to provide different subscription packages in order to appeal to a wider range of people.
Giveaways and Offers : Rewarding loyalty always goes down well with viewers. This could be in the form of free content or upgrades.
Streaming services who know their niche, know their viewers and by offering a subscription package that works, they are well on their way to securing success in the SVOD market. It is however crucial to remember that effective marketing is vital. Providers need to communicate the value, affordability and reliability of their brand in order to retain their viewers and ensure continued success in the world of SVOD.
Even if you were eager to follow everything we mentioned, what kind of video monetization platform would you use to start up with? We can help you out with it. Muvi can.