Features that diversify your subscription monetization strategy

The Subscription Video on Demand (SVOD) model has long been a staple of the OTT streaming industry, benefiting both viewers and service providers with its straightforward approach: users pay a consistent fee for unlimited access to a diverse content library. 

This OTT monetization model has proven effective in establishing a stable revenue base and delivering value to subscribers. However, as the market matures and user demands evolve, the traditional SVOD model faces challenges in sustaining growth and retaining viewer interest. It's becoming increasingly clear that innovative and creative subscription monetization strategies are essential to reinvigorate this model. 

1. Multiple Active Subscriptions: Catering to Diverse Interests

Streaming services can significantly amplify their appeal and revenue by enabling users to maintain multiple active subscriptions simultaneously. This feature allows service providers to segment their content more effectively and place it behind different paywalls. 

For instance, a user may have a basic subscription for general content and opt for a second plan granting access to exclusive event-based content or premium categories like specialized sports events or premium movie channels. In another case, a user might subscribe to a sports package, a kids' entertainment bundle, and a premium movie channel all under one account.  

This strategy not only improves ARPU by encouraging users to subscribe to multiple tiers but also enhances user satisfaction and engagement by offering tailored, flexible content experiences, catering to the varied interests of each subscriber.

2. Flexibility in Subscription Durations: Meeting User Preferences

Empowering users to switch between subscription durations (monthly, quarterly, yearly) adds a layer of flexibility that can be a game-changer. Such flexibility allows users to choose a plan that suits their changing lifestyle and viewing habits, such as opting for a longer-term subscription for uninterrupted service or a shorter one when they anticipate less viewing time. This adaptability can lead to increased user retention and loyalty.

3. Payable vs Viewable Items: A Hybrid SVOD-TVOD Model

Integrating Transactional Video-on-demand (TVOD) elements into the SVOD model creates a hybrid approach where users access a base library of content as part of their subscription (viewable items) and have the option to pay for premium or exclusive content (payable items). This strategy can entice users to spend more on content they find particularly valuable, boosting revenue while keeping the core subscription affordable.

4. Tiered Entitlement: Personalized Viewing Experiences

There are numerous ways OTT services can twist and turn their pricing models and content access to generate revenue, and the tiered entitlement approach allows them to do just that. The key is to understand the audience's preferences and come up with blueprints to deliver them exactly what they need.

Implementing this means that video streaming services can provide different levels of content access or additional features based on the subscription tier, catering to diverse viewer preferences and budgets, and hence creating personalized experiences. Tiered subscriptions add layers of customization and choice for both the provider and the users, moving beyond the one(or 3)-plan-fits-all approach of traditional subscriptions.

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Conclusion

Depending on how you position your service and how well you understand your audience, different tactics such as described above can be introduced into your SVOD monetization strategy. Through the implementation of these features, your streaming platform can better meet the diverse needs and demands of today's viewers. In doing so, you not only enhance user satisfaction and engagement but also open up new avenues for revenue growth. 

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