What Is Subscription Video On Demand (SVOD)

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It's no secret that technology has taken over almost every aspect of our lives. We use it to communicate, learn, work, and entertain ourselves. 

And while there are some who might argue that this is a negative development, perhaps a more accurate statement would be that it simply means we need to be more aware of the technologies we're using and how they're impacting our lives. In other words, we need to be more tech-literate. 

One of the most important aspects of our lives that we should strive to understand better is Subscription Video On Demand (SVOD). SVOD is slowly but surely becoming the main way people consume media, and there are some key things you might want to know about it.

1. What is SVOD?

Streaming video on demand, or SVOD, is a service that allows users to select streaming content over the internet and watch it on their TV. The user subscribes to the specific service for a monthly fee and has access to a library of programming (depending on what package they sign up for).

What Is Subscription Video On Demand (SVOD)

It's great because you can watch whatever you want whenever you want without having to wait for episodes or movies to come out on DVD. 

There's a variety of content for you to watch. SVOD has been around for quite some time now, but it's only recently that its popularity has exploded. The ease of content delivery and the plethora of devices that can be used to access SVOD content are two main reasons for its recent success. You can find pretty much anything - from movies and TV shows to workout videos and documentaries - on SVOD services. 

Most SVOD services use a subscription model in which users pay a monthly fee in exchange for access to a library of content. The content can be streamed live or on-demand, depending on the service. 

SVOD services can be accessed through a variety of devices, such as smart TVs, gaming consoles, streaming media players, and mobile devices. All you need is an internet connection and you're good to go.

2. The creators

The reason why creators might opt to have their content on SVOD is that it gives them more control over how their work is distributed and monetized. SVOD services give creators a direct relationship with their audiences, which can be beneficial for both the creator and the audience. 

2. The Creators

The creator can better understand who their audience is and what they want, and the audience can feel closer to the creator. This type of relationship can be fostered through features such as social media, commentary tracks, and behind-the-scenes footage. 

Usually, the SVOD platform also simply offers better economics for the creators. It can be more profitable for them to have their content on SVOD than traditional television because they get to keep a larger share of the revenue. 

That's why you're seeing more and more content creators making their work available on SVOD services.

3. The users

The users of SVOD services are typically divided into two groups: cord-nevers and cord-shavers. Cord-Nevers are people who have never subscribed to traditional cable or satellite TV, or that have canceled the service. 

A lot of them have grown up using the internet and other digital technologies to consume media, so it's only natural for them to use SVOD services.

Similarly, cord-shavers are people who have downgraded their traditional TV service to a lower tier in order to save money. SVOD services are perfect for both groups of people because they offer a great selection of content that can be streamed at any time. 

One of the main attractions from the customer's standpoint is that an SVOD service provides them exactly with the content they want to see, while a traditional TV service typically bombards the customer with channels and content that they may not be interested in.

4. Notable examples

Netflix, Hulu, and Amazon are the three most popular SVOD services in the United States. Netflix is the biggest of the three, with over 100 million subscribers worldwide. The company started out as a DVD rental service but eventually pivoted to streaming when it became clear that was the future of media consumption. 

Hulu is a joint venture between Disney, Fox, Comcast, and Time Warner. It offers a mix of traditional TV shows and movies as well as its own original content. 

Amazon is the youngest of the three services, having launched in 1997 as an online bookstore. It has since expanded into other areas such as music, video, and cloud computing. All three services offer a free trial period so you can try them out before you decide to subscribe.

5. Starting a SVOD platform

If you're interested in starting an SVOD platform, there are a few things you need to know. First, you need to have a lot of content to offer your users. This content can be either original or licensed from other sources. You'll also need a good selection of devices on which your users can access the service. 

And finally, you'll need to have a good marketing strategy to get the word out about your service. Of course, having a reliable infrastructure in place is also essential, so make sure you have the resources to support a large number of users.

While starting a new SVOD service isn't easy - especially with so many already established platforms, it's not impossible either. Some suggest that the way to go about it nowadays is to search for a niche that's less competitive but still in demand, and focus on that. 

A service that will enable users to watch anime or Korean dramas, for example, may have a better chance of succeeding than one that offers a general selection of content.

6. Traditional media vs SVOD

It's no secret that traditional media is in decline. People are increasingly turning to SVOD services to watch their favorite shows and movies, and this trend is only going to continue. This is mainly because SVOD platforms offer a better experience for the user

As already mentioned, the users can choose the content they want to see instead of being bombarded with channels they don't want, and they can watch it whenever they want. 

Traditional media companies are trying to adapt by creating their own SVOD services, but it's not always easy for them to compete with the big players like Netflix and Hulu. That's why many of them are teaming up in order to create joint ventures, which gives them a better chance of success.

7. Rise to popularity

While the basis for the technology isn't exactly new, SVOD has only become popular worldwide in the last ten or so years. This is mainly due to the increasing availability of high-speed internet and the proliferation of devices that can be used to stream content. 


In addition, the aforementioned big players in the SVOD space - Netflix, Hulu, and Amazon - have been investing a lot of money into creating original content, which has helped to attract more users. With so many people now using these devices, it's no surprise that SVOD services are seeing a surge in popularity.

Add to that the events from the last few years where people had no choice but to spend more time at homeexpected to grow even more, and it's easy to see why SVOD is becoming the primary way people are consuming media. The industry is  in the years to come, so it's definitely worth considering if you're looking for a way to watch your favorite shows and movies.

8. Difference between TVOD, AVOD, and SVOD

TVOD (Transactional Video On Demand) is a type of streaming service where the user pays for each individual video they watch. This is in contrast to SVOD (Subscription Video On Demand), where the user pays a monthly fee in order to have access to a library of content. AVOD (Advertising-Supported Video On Demand) is a type of streaming service that combines the features of TVOD and SVOD. 

The user pays nothing to watch videos, but there are ads in between them. Depending on what you want to use the service for, you might go for one or the other, however, there's no doubt that most people opt for SVOD since having a flat rate for basically unlimited content is a much better deal.

9. The future of SVOD

It's clear that SVOD is the future of media consumption, but what does that mean for the industry? Well, for one thing, it means that traditional media companies are going to have to adapt or die. It also means that we're going to see more original content from SVOD platforms, as they compete for users. 

9. The Future Of SVOD

Finally, it means that we're going to see even more devices that can be used to stream content, as the industry races to become ubiquitous. 

In short, SVOD is here to stay, and it's only going to get bigger in the years to come. The main concern with SVOD services is what they're going to look like if traditional media companies go out of business. 

Many of these companies own the rights to popular TV shows and movies, so if they go bankrupt, those shows and movies could disappear from SVOD platforms. This is a real possibility, so it's something worth keeping an eye on.

Final words: what is subscription video on demand (SVOD)

It's clear that the trend of people consuming media through SVOD services is only going to continue. This is mainly because SVOD platforms offer a better experience for the user, as they can choose the content they want to see and watch it whenever they want. 

Traditional media companies are trying to adapt by creating their own SVOD services. 

While it may not be completely clear on what this means for traditional media exactly - one thing is for certain, SVOD is the future of home entertainment.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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