How to Optimize Investments When Scaling Up Your SVoD Service

Dimitar Serafimov | Thu Jul 12 2018 | Industry insights

SVOD catalogue

The rapid evolution of SVoD presents constant opportunities to savvy broadcasters and content providers looking to attract and retain new customers while scaling their venture for worldwide domination.

To grow, expand and develop your business in the SVoD world, you must make the right choices and the right investments at the right time to drive long-term value for yourself, as well as your consumer base.

Content investments have different goals 

Now, once you’ve earned a certain level of success and your subscriber base is at a healthy level, to continue to attract valuable new customers while retaining existing users.

Parrot Analytics defines 3 major types of content that an SVOD service can invest in differing by its goal: 

  • subscription drivers;
  • churn reducers;
  • niche attractors.

Any shows or content that falls outside these definitive categories run the risk of resulting in subscriber cancellations once you’ve reached your tipping point.

To illustrate the dynamics of this stage, here is a chart showcasing Amazon’s SVoD framework:

3 content types for SVOD services

These investments show that major SVOD providers have to focus on reducing subscriber churn, pleasing niche audiences and boost subscriptions.

To grow and scale your service for international success, the analyst singles out three key phases or elements to consider:

  • Releasing shows that cater to niche subscriber wants and needs more frequently.
  • Morphing existing local or regional shows into global hits by repackaging them and spinning them to new audiences with a fresh marketing angle. For examples, Netflix adopted this approach with La Casa de Papel, which is known as Money Heist.
  • Commissioning original content with a tangible global appeal. Many Danish crime dramas fall into this category.

The Thai SVOD example

When the market becomes saturated locally, like in Thailand’s crowded SVoD landscape, for example, issues arise as there are too many services coupled with too little subscribers to go around. And with high licensing costs thrown into the mix, some SVoD players are beginning to venture into deep water.

But where there is an issue there is an opportunity. To overcome these roadblocks a market shakeup seems inevitable with:

    • looking for local distributors to roll out your service via their platforms;
    • enabling data allowances that support connectivity;
    • tieing up with local IPTV and other supply-chain partners.

The SVoD market is one of the most exciting playing fields in the world of entertainment today, and those that make the right investments and seize the right opportunities will win on tomorrow’s commercial battlefield.

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