The market for streaming video on demand (SVOD) continues to grow. By the end of this year it’s estimated that 161 million homes worldwide will be using SVOD, according to figures from Research and Markets. When you look at their predictions for forthcoming years, the growth is even more apparent.
They estimate that 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 well and truly here to stay, and providers need to stay on top of their game in order to benefit from its growth. One of the most important factors for providers to consider is the strength of their subscription service. Of course, plenty of research needs to be done before providers can build on the strength of the subscriptions they offer.
Doing the groundwork
We’re going to have a look at the specifics of a subscription service a little later, but first it’s important to look at the groundwork that SVOD providers need to do.
Find the niche
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 the viewer
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?
Find the right price point
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.
What makes a strong subscription service?
Remember that one of the main aims of any SVOD provider is to retain customers. Once a provider has done the groundwork they need to look at how their subscription service needs to work in order to maintain their customer base.
- Make it simple
Subscription terms should always be simple and transparent so that viewers will not be deterred.
- Provide a range
It’s a good idea to provide different subscription packages in order to appeal to a wider range of people.
- Reward loyalty
Rewarding loyalty always goes down well with viewers. This could be in the form of free content or upgrades.
Providers who find their niche know their viewers and offer a subscription package that works, are on their way to securing success in the SVOD market. But, it’s important for them 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.