As the world of SVOD expands and evolves, so does the scope for driving revenue. Content providers and SVOD platforms must execute new revenue strategies to secure success.
In today's world, the best way to drive long-term prosperity is by growing your subscriber numbers.
Growth and revenue strategies for SVOD service publishers
There are a number of options when it comes to a successful SVOD growth strategy, and in both Europe and North America, partnerships are proving a particularly popular tactic. According to a recent report from Unisphere research, the key SVOD growth strategies are fostering partnerships and referral programs, followed by affiliates and bundles.
In addition to growth strategies, the report highlights a selection of vital SVOD revenue opportunities, as the righ-side chart shows.
From this, it's plain to see that sub length and the curation of package bundles prove the most efficient forms of revenue growth, with methods including the offering of vouchers, discounts, and coupons all valid forms of driving consumer engagement and making profit.
Regarding pricing, 71% respondents to the report confirm that they have made no pricing adjustment within the last 12 months, while 14% confirm a downward pricing adjustment and just 15% said they've made a pricing increase.
What's more, Europe and the rest of the world have shown a 22.2% and 23.8% pricing increase in the past 12 months respectively, compared to 20.6% in North America.
The virtues of 'discoverability'
One of the major factors that many niche SOVD providers face when it comes to driving revenue is discoverability. To expand your reach and gain the loyalty of your target audience, it’s essential to invest in focused advertising campaigns, provide discounted bundles, and offer a wealth of choice in your niche.
To add to the subject, speaking to Multichannel.com, Michael Paull, vice president of digital at Amazon said: “Our vision is to offer a complete over-the-top video solution, where we provide the most choice through the widest selection of the best content all in one experience.”
A clear indication of the power of choice in the modern age.
SVOD revenue mistakes
To enjoy real success, you must learn from your own, or in this case, other people's mistakes. Here are three errors that our OVP partner Ooyala noted as crucial, and you must avoid at all costs:
- Having unrealistic expectations of rapid subscriber growth: success doesn't happen overnight and those who play the long game are the ones that win.
- Ignoring the consumer or worse, make them unhappy: the consumer is the heart of your operation, so user experience is the key to success. Ignore this advice at your peril.
- Defending an old business model: things are always changing, especially in the world of SVOD. To ensure success, you must embrace the economics of SVOD as opposed to existing business models.
For the savvy SVOD provider, there is no end of revenue opportunities, but to make sure you don't fall behind and stay right ahead of the pack, constant research, study, change, and innovation is essential. In today’s world, standing still is not an option.
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