Subscription video on demand (SVOD) is the fastest-growing segment in the digital video space. It allows consumers to pay an affordable monthly fee for access to a library of content, similar to a cable TV package. However, with SVOD, users don’t have to subscribe to many services at once; they can choose just the channels they want to watch.

What is SVOD?

SVOD is a paid subscription model for the online streaming of videos. Some of the most popular SVOD services include Netflix, Hulu, and Amazon Prime. Each offers a library of thousands of movies and TV shows to choose from, with different programming for different regions and genres.

Users can also subscribe to premium channels such as HBO (which costs $14.99 for one month) or Starz ($9.99 monthly). SVOD services are similar to cable TV packages, in that they generally provide access to a large library of content. However, unlike cable TV, users don’t have to subscribe to many services at once; they can choose just the channels they want to watch.

How Does SVOD Work?

SVOD services typically use an algorithm to recommend new content to viewers based on the shows they’ve chosen to watch or the genres they like. When a viewer signs up for a service, she receives a “key” that lets her access the content on a certain device. This can be a subscription streaming service such as Netflix or a set-top box such as Amazon Fire TV.

Once the key is activated, the service pulls the show or content and makes it available to the user. The key system is especially convenient for users who prefer to stream on multiple devices, including laptops, smartphones, and tablets. Some services also allow users to share their accounts with other people. For example, a parent can give a child a key so they can access content on the parent’s account.

Why Is SVOD So Popular?

SVOD services are convenient and easy to use. Unlike a cable TV subscription, which generally requires a technician to install additional set-top boxes and cords throughout the home, SVOD is usually accessible from any Internet-enabled device. SVOD is convenient for people who travel a lot or work from home.

It can also be a more affordable way to keep up with current events and popular shows. Unlike cable TV, which often puts out new episodes of shows at random times, SVOD services typically have the latest season of most shows available at any given time. Many SVOD services also offer movies at a lower cost than cable TV.

Types of SVOD Services

Subscription Service: This service charges a monthly fee for access to a library of content. There may be a limited number of episodes or episodes per day, depending on the service. Popular subscription services include Netflix, Hulu, and Amazon Prime.

Streaming Service: This model charges a flat fee for access to a library of content. There are no recurring fees. You can stream content whenever you want. Popular streaming services include Sling TV, DirecTV Now, and ATT WatchTV.

Premium Service: This service is similar to a subscription service, except that it costs more money per month. Popular premium services include HBO Now, Showtime, and Dish Hopper.

What’s the Difference Between a Traditional and an SVOD Service?

A cable TV subscription service generally costs several hundred dollars per year and provides access to a limited number of channels. For example, a cable TV subscription might cost $100 per year and allow you to watch channels such as CNN, Fox News, and AMC.

An SVOD subscription service, on the other hand, lets you choose the exact shows, channels, and times you want to watch. Many cable TV providers are moving toward offering an SVOD service. This allows them to attract younger viewers and those who want to watch on-demand content via Internet browsers.

Conclusion

SVOD is the fastest-growing segment in the digital video space. It allows consumers to pay an affordable monthly fee for access to a library of content, similar to a cable TV package. However, with SVOD, users don’t have to subscribe to many services at once; they can choose just the channels they want to watch.

SVOD services are similar to cable TV packages, in that they generally provide access to a large library of content. However, unlike cable TV, users don’t have to subscribe to many services at once; they can choose just the channels they want to watch.