Subscription Video on Demand

(SVOD) is an abbreviation for Subscription Video on Demand. This refers to video streaming services that require users to subscribe in order to access them. Because Netflix is an SVOD, users must pay a monthly subscription fee in order to watch their content.

This is in contrast to AVOD services, which generate revenue through advertisements, and TVOD services, which generate revenue through single transactions (pay-per-view). Some services, such as Hulu, use a hybrid model that combines various revenue models.

SVOD is similar to traditional TV packages in that it allows users to consume as much content as they want for a flat monthly fee. Sky (and its subsidiary Now TV), Netflix, Amazon Prime Video, and Hulu are among the major services, with new offerings from Apple, HBO, and Disney on the way.

Because consumers aren't locked into a long-term contract with SVOD, they have far more freedom to opt out. This gives users more flexibility, and SVOD providers are constantly challenged to retain customers by providing exclusive new content, aggressive pricing schemes, or both.

ALso Read: AVOD VS SVOD