With consumers subscribing to an average of three-paid-for platforms, availability is fast outstripping demand.
Though streaming platforms have capitalised on the increase in demand for content and entertainment at home, the subscription video on demand (SVOD) sector is reaching a saturation point. With a YouGov study indicating that consumer awareness of SVOD is higher than ever before, subscriber growth will be a challenge and platforms should explore advertising as an option.
Platforms can adopt a dual-tier model like Spotify, which offers both ad-funded and premium services. Alternatively, choosing a “Freemium” model that offers an ad in exchange of content can also help streaming platforms capture the market share.
SVOD platforms can introduce new models, unique formats and offer partnerships to drive incremental revenue. They can provide a non-intrusive opportunity for the brand by switching to branded props instead of generic ones.
[4 minute read]