Pay-Per-View (TVOD) vs. Subscription Models: How to Choose the Right Revenue Model

If you are an enthusiastic video content creator, then monetizing it might be on your mind. For this, it is imperative to choose the ideal revenue model. Your choice can significantly impact your earnings and audience engagement. A suitable revenue model can turn your passion into a sustainable income stream. At the same time, your audience gets access to high-quality content.

This blog will explore two key revenue models- Pay-Per-View (TVOD) and Subscription. We will also explore various considerations for selection like revenue generation and audience reach; this will help you make an informed decision.

Pay-Per-View Model (TVOD)

This model is characterized by viewers paying a fee to access specific content. The payment is typically on a one-time basis. Some examples where TVOD is commonly used-

Entertainment and Film Industry- TVOD is widely used in the entertainment sector. Movie studios often release new films for a specific rental or purchase fee on streaming platforms.

Sports- Many sports events are distributed through TVOD. These include boxing matches, UFC fights, and special sporting events like the Olympics. 

Live Streaming and Virtual Events- TVOD is suitable for one-time live streaming events and virtual conferences where attendees pay to access these events.

Features of Pay-Per-View (TVOD) Model

One-Time Payment

In the Transaction Video on Demand model, viewers make a one-time payment for accessing a specific piece of content. Such content may span a movie, live event, or webinar. Viewers get the flexibility of only watching what they pay for. This makes it suitable for one-time or high-value content. 

Limited Access Window

TVOD often provides limited access between 24 hours and a few days. Viewers must watch the video content within this timeframe. This technique creates a sense of urgency and encourages prompt payments. 

Pay-Per-Event Model

A subset of Transaction Video on Demand is the pay-per-event model. Viewers pay to access specific live events or broadcasts in this approach. Sports matches, concerts, or conferences are good examples of this approach.

This model is popular for events with a defined start and end time. This lets organizers generate revenue from viewers tuning in for a single event.

Subscription Model (SVOD)

The key USP of recurring revenue underlines the subscription model or SVOD. Viewers pay a regular subscription fee (monthly or annually) to access a library of content on a video streaming platform. SVOD provides a predictable income stream and encourages viewer loyalty. This makes it suitable for creators who can provide a steady stream of content. 

SVOD platforms emerge as a boon for content creators, offering a lucrative avenue for monetization. This approach lets creators bring their video assets to a bigger audience base. This helps encourage long-term customer engagement and drive a consistent revenue stream. Additionally, these platforms often invest in original content, offering creators production opportunities and exposure. Through an SVOD-based online video platform, creators can focus on crafting high-quality, compelling content, knowing that their work finds a paying audience.

Things to Consider When Choosing A VOD Model for Your Video

If you need to choose a particular VOD model for your business, then be aware of these key variables.

Type Of Content- Consider whether your content is episodic, one-time, or ongoing. Episodic content often suits subscription models. On the other hand, one-time events may benefit from TVOD. 

Target Audience And Behavior- Understand your audience’s preferences. Are they looking for exclusive, premium content? If so, TVOD would be a viable medium. If users want to access a wide assortment of content, then SVOD would be a great idea. 

Pricing And Revenue Potential Analysis- Analyze the earning potential of each model based on your pricing strategy. TVOD can offer high returns for premium content, while SVOD provides a steady stream. 

Content Release Frequency- Do you release content regularly? Then, Subscription Video on Demand can ensure a constant income stream. TVOD may be better for occasional, high-value content. 

Long-Term Revenue Sustainability And Growth- Consider your long-term goals. SVOD tends to be more sustainable and can provide steady growth over time. 

Revenue Generation and Audience Reach for TVOD & SVOD

Both TVOD and SVOD models have their plus points when it comes to revenue generation and audience reach. Understanding the TVOD vs. Subscription Model can help content creators and businesses decide. 

In Case Of TVOD

Immediate Revenue- TVOD offers creators and businesses immediate revenue for each transaction. When viewers pay to access specific content, the income is generated instantly.

Higher Individual Transaction Amounts- Transaction Video on Demand can potentially generate higher individual transaction amounts, especially for premium or exclusive content. Viewers are willing to pay more for unique offerings. 

Targeted Audience- TVOD often appeals to viewers seeking specific content. Creators can market their content to individuals interested in their niche.

Content Licensing- Content owners can license their content to multiple TVOD platforms, potentially reaching a wider audience through various distribution channels.

In Case Of SVOD

Predictable, Recurring Revenue- SVOD provides a predictable and recurring income stream. Subscribers pay regular subscription fees (monthly or annually). This guarantees a steady cash flow.

Stability and Long-Term Growth- The Subscription Model can lead to stable, long-term revenue growth over time. More subscribers means more income!

Broader Audience- SVOD platforms typically offer a vast content library, attracting a broader and diverse audience. Subscribers can explore various genres and categories.

Continuous Engagement- SVOD encourages continuous viewer engagement. Subscribers are likely to explore and watch content regularly, maximizing viewer retention. 

Conclusion

It is clear that you need to carefully analyze the benefits and features of various VOD models before finalizing one type of video monetization technique. The choice between Pay-Per-View (TVOD) and Subscription Video on Demand (SVOD) models depends on various factors. This includes your content type, target audience, pricing strategy, content release frequency, and long-term goals.

Ultimately, there’s no one-size-fits-all answer. Creators and businesses should carefully evaluate these factors to determine which revenue model aligns best with their unique needs and your audience’s preferences.