SVOD, AVOD, TVOD: Video on Demand Models Explained

by The MNTN Team

8 Min Read

SVOD, AVOD, TVOD—there are so many acronyms to remember when viewers just want to keep track of their favorite characters and shows.

TV viewership has changed drastically in the past few years (goodbye cable cords, hello wireless viewing). However, it’s going to keep changing as different platforms fight for viewers and struggle to become profitable, particularly in the face of economic uncertainty and an audience that may not want or be able to keep spending top dollar for an increasing number of services.

If you’re looking to make sense of the new TV landscape, read on.

What is SVOD?

Subscription Video On Demand (SVOD) is a model of media distribution where consumers pay a recurring fee to gain unlimited access to a streaming platform’s content library, ranging from films to TV shows.

How Does SVOD Work?

SVOD works by enabling subscribers to view this content at any time and from any device with internet connectivity, offering a high degree of convenience and user control over the content selection and viewing schedules.

SVOD Platforms & Services

SVOD services are the leaders in the Connected TV (CTV) space. SVOD services include:

Netflix
Disney+
Amazon Prime Video
HBO Max
Apple TV+
Paramount+
Hulu
Peacock

Pros of SVOD

The pros of SVOD are simple:

Unlimited Streaming: Subscribers have the freedom to watch an extensive selection of movies and TV shows without incurring extra charges.
Commercial-Free Experience: Many services provide seamless, uninterrupted viewing, letting users enjoy content without streaming ads.
Exclusive Productions: Platforms frequently offer unique shows and films, delivering premium content that isn’t found on other channels.

Cons of SVOD

Rising Costs: Subscribing to several streaming services can result in substantial combined monthly expenses.
Scattered Content: Top shows and movies are often distributed across various platforms, necessitating multiple subscriptions to access them all.
Rotating Catalogs: Content can be removed due to changing licensing agreements, making it difficult for subscribers to consistently access their favorite programs.

What is AVOD?

Advertising Video On Demand (AVOD) is a media distribution model that provides free or reduced-cost streaming services to viewers, who in return are shown advertisements during their viewing experience.

How Does AVOD Work?

AVOD works by leveraging the revenue generated from these advertisements, allowing platforms to offer content at no cost to the user and enabling advertisers to reach a specific audience segment based on their viewing habits and preferences.

AVOD Platforms & Services

Some prominent AVOD platforms include:

YouTube
Tubi
Pluto TV
Crackle

Pros of AVOD

AVOD’s pros are as follows:

No Cost to Viewers: Audiences can enjoy a broad selection of content without needing to pay for a subscription, or getting one at a reduced cost.
Wide Range of Content: Includes both user-created and professionally produced programming, along with live channels that cater to unique and niche interests.
Targeting Advantages for Advertisers: Brands can reach well-defined audiences, enhancing the effectiveness of their ad campaigns.

Cons of AVOD

Interruptive Ads: Regular commercial breaks can interrupt the flow of content and annoy viewers.
Content Limitations: Certain popular or exclusive shows may not be accessible due to licensing, reducing content diversity.
Privacy Issues: The use of viewer data for targeted advertising can lead to concerns about data security and privacy.

What is TVOD?

Transactional Video On Demand (TVOD) is a media distribution model where viewers pay for each individual piece of content they choose to watch, similar to the traditional rental or purchase of movies or television episodes.

How Does TVOD Work?

TVOD works by providing a wide selection of content to users who can then selectively purchase or rent what they want to watch, thus offering high-quality content without needing a subscription or viewing advertisements.

TVOD Platforms & Services

iTunes/Apple TV
Google Play
Amazon Prime Video (TVOD Section)
Vudu
YouTube (Movies & Shows)

Pros of TVOD

Permanent Access: Users can buy and keep content, allowing unlimited replays whenever they wish.
Subscription-Free: Enables viewers to pay solely for the content they choose, offering greater flexibility.
Advanced Availability: Frequently offers the opportunity to watch new movie releases ahead of their appearance on other platforms.

Cons of TVOD

Expensive per Title: The cost of buying or renting several titles can add up quickly, often surpassing the expense of subscription services.
Restricted Access: Each title must be purchased individually, limiting overall access compared to platforms with extensive libraries.
Temporary Rentals: Viewing windows for rentals are often short, potentially requiring users to pay again to rewatch the same content.

SVOD vs. AVOD vs. TVOD: Summary of Differences

So, just for the sake of clarity, let’s summarize the key differences between each video-on-demand service.

Payment Model

SVOD operates on a subscription-based model, where users pay a set fee monthly or annually for unlimited access to a library of content.
AVOD, on the contrary, offers content free of charge to the users but monetizes through embedded advertising within the content.
TVOD requires users to pay on a per-content basis, providing the flexibility to only pay for the content they choose to watch.

User Experience

With SVOD, viewers enjoy an ad-free streaming experience due to the subscription model.
In contrast, AVOD users have to tolerate periodic advertisements as a trade-off for free content access.
TVOD offers a mixed experience where purchased content is ad-free, but the user must individually select and pay for each piece of content.

Revenue Generation

Revenue in SVOD comes from the regular subscription fees paid by users.
AVOD generates revenue through advertisers who pay to place their ads within the content.
Meanwhile, TVOD’s revenue is derived from individual transactions made by users to access specific content.

How Do CTV and OTT Fit In the Picture?

CTV stands for “Connected TV.” On CTV, content is streamed solely via TV screens that are connected to the internet. CTV streaming devices can include Rokus, Apple TVs, and Smart TVs.

OTT stands for “over-the-top,” meaning content that comes over your cable box via the internet rather than through a cable or satellite. Content may be watched on any device that has a connection to the internet—mobile, tablets, desktops—but more and more, people are shifting back to the TV screen in their living room.

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SVOD, AVOD, TVOD: Final Thoughts

Compared to a handful of basic cable and network options in the old days, viewership could be seen as fragmenting with so many SVOD, AVOD and TVOD options. On the plus side, however, there’s a captive audience to be found at home watching SVOD, AVOD and TVOD content.

Viewers’ dependency on streaming services has only increased in recent years. That viewership may change with trends favoring one service or another, but the demand has certainly increased and shows no signs of reversing soon.

With a nimble partner, you can conquer the world of OTT and CTV, turning audiences’ hunger for quality content into a performance marketing channel of unprecedented power.