Streaming monetization: what are the differences between AVOD, SVOD, PVOD, and FAST?
Last updated: 13 February 2023
Streaming monetization refers to the various ways in which money is made through streaming live and on-demand radio and video content. Advertising-based Video on Demand (AVOD), Subscription Video on Demand (SVOD), Pay-Per-View Video on Demand (PVOD), and Free Ad-Supported Television (FAST) are four different ways of monetizing video content. Are there other models too? Read more to find out:
AVOD, also known as “free-to-view” or “free-to-air,” is a business model where video content is offered to viewers for free. Therefore, revenue is generated through advertising. This model is commonly used by streaming platforms such as YouTube. Since the users can watch videos for free but have to sit through ads.
SVOD, on the other hand, is a subscription-based model where users have to pay a monthly or annual fee to access the video content. Spotify, Apple Music, Netflix, ViaPlay, HBO, and Disney+ are some examples of platforms that use the SVOD model. SVOD is not just interesting for large OTT media services, think of niche content services, professional education services and sports training subscriptions too.
PVOD is a pay-per-view model, where users have to pay for exclusive videos or movies they want to watch. It is also often used for special events, such as live concerts or sports events, where users pay to watch a one-time event.
FAST, or free ad-supported television, is a model where television channels are offered to viewers for free, with revenue generated through advertising. This model is commonly used by traditional television networks and is gaining momentum for online television channels too.
Hybrid AVOD and SVOD models are gaining popularity too. Think of the free ad-supported Spotify tier, and Netflix’s recent introduction of a low-end SVOD tier with AVOD ads.
There are also examples of hybrid SVOD and PVOD models. Apple+ for instance is an SVOD subscription service, in addition, it also lets you rent and buy exclusive films.
Jet-Stream is also predicting the rise of hybrid SVOD and FAST models, where SVOD services purchase rights to live sports. For instance, such as ViaPlay, which offers an SVOD service, and offers F1 live sports content too. Sports live streams are great drivers for ad and sponsor revenues and great drivers for more subscribers to a platform.
Online video is also very interesting for SEO optimisation, lead generation, and interactive call-to-actions. For instance, to do live sales, or offer tickets, merchandise and other products while people are watching videos and live streams.
Finally, we see attempts for new revenue models, such as revenue sharing for user-generated podcast content (Spotify), ad revenue sharing (YouTube) and donation sharing (Twitch).
All in all, these are exciting times for anyone who wants to start their own media service. Consumers have embraced streaming as their number one option to pay for media services. Whether these are ad-supported, subscription-based, or pay per view, or in any hybrid mix.
Each of these streaming monetization models has its own pros and cons. AVOD is a good option for viewers who don’t want to pay for content but have to sit through ads. SVOD is a good option for those who don’t mind paying a monthly fee for access to an extensive catalogue of premium content. PVOD is a good option for those who want to watch a specific event or movie without subscribing to a monthly service. FAST is a good option for those who want to watch television shows and movies for free.
Monetize your streams with Jet-Stream Cloud
Jet-Stream Cloud offers a premium media hosting and streaming service that supports all these video and live-stream monetization models. From video on demand to live television, from podcasts to live radio, and live events.
Thanks to Jet-Stream Clouds’ extreme performance and uptime, streams and videos start instantly, without buffering and with up to 8K quality. Thus, ensuring that your viewers get a premium, competitive service for their money.
Jet-Stream Clouds integrated Multi CDN, ensures that you can reach a global audience of millions. From Western Europe to China, from the Middle East to the Americas, and from Africa to Eastern Europe.
Advanced media protection technologies
To protect paid SVOD and PVOD business models, Jet-Stream offers advanced media protection technologies including encrypted connections, geo-fencing, anti-deep linking, URL signing and encryption. Jet-Stream Cloud is designed in such a way that you can easily connect your own origin services that contain (DRM) encrypted data and you can upload DRM-encrypted data to Jet-Stream’s origin storage services. So you are free to run your own license services as well.
IAB VAST-compliant advertising support
To support advertising models and to ensure that you get optimal results out of AVOD and FAST models, Jet-Stream Cloud fully supports IAB VAST-compliant advertising. Meaning that you can integrate any video ad service and monetize your media.
Contextual Video Advertising
Jet-Stream Cloud was the first to introduce Contextual Video Advertising. This free and unlimited service does not eat into your CPM margins for AVOD and FAST models and is more effective compared to 3rd party cookie-based advertising.
The built-in interactive video player lets you add interactive overlays, and add call-to-actions to request people to leave their email address, or directly purchase tickets, subscriptions, merchandise and products.
Jet-Stream Cloud generates real-time analytics data, giving you deep insights into engagement and consumption. This data lets you tune and optimize your AVOD, PVOD, SVOD and FAST services.
Moreover, with Jet-Stream, your media, and data are yours. Imagine the value of your data: logs and analytics contain everything about your audience’s behaviour, their preferences, your most popular titles, your programming, your geographies, and advertisers. You don’t want this data to fall into the hands of your competitors.
Jet-Stream Cloud does not claim any ownership of your media or your precious metadata. All your content and data are protected by the secure cloud and are never shared or sold to third parties.
Want to learn more about the topic of streaming monetization? Then don’t wait! Contact us today and see how we can help you get additional revenue!