How Gifting Freebies Opens the Way for SVOD?
In today’s online world, the old-time tradition of freebies and free trials should be utilized if you want to capitalize on the multi-dollar online marketplace. Free stuff helps people shift from not knowing anything about your business to trusting you, and this is how they don’t just buy but subscribe and stay!
The annual increase in global SVOD subscriptions in Q3 2020 reached 217.6 million, the highest ever, beating the previous record of 211.7 million in Q4 2018, according to the latest analysis from Strategy Analytics.
When the pandemic struck, most enterprises collapsed partially or completely. VOD and OTT became the boss babies and businesses left no stone unturned to raise these to their vantage. Although SVOD (Subscription Video-on-Demand) is witnessing a rise today, for OTT, Multi-Play and Broadcasting sectors, navigating through this can still be an uphill struggle.
But there’s always an opportunity in every struggle. With the right maneuvers, the realm of SVOD becomes easy to tread, and also highly beneficial in terms of recurring revenue- the forever income with one time’s creation!
But first things first, are VOD and OTT the same?
VOD Vs. OTT: What’s The Difference?
Understanding the ever-so-dynamic VOD space is becoming a precursor to be able to successfully ace Subscription life cycle management. The rims of OTT and VOD often do get hazy unless you’re a video freak gripped by the know-how. And you’re not alone in this to think they’re the same since they usually come hand-in-glove. It’s time to finally clear some air on this.
So, here it is: they’re both different! Both OTT and VOD can exist without each other.
The infographic here illustrates it out for you.
While Video on Demand (VOD) allows one to play-back content at any desirable time, Over-the-top (OTT) transmits content over the internet rather than over cable or satellite. Again, you might want to remember that both VOD and OTT can let your customers stream content conveniently on multiple devices, can be free or paid, and be delivered over the internet.
Alright, Then Let’s Talk SVOD!
SVOD stands for Subscription Video-on-Demand, which has risen to become one of the most popular monetization models in VOD. Customers can consume content as per wish, on any device with internet access against a small and flat recurring rate. Netflix, Amazon Prime, HBO, and Hulu are some renowned SVOD names you might surely know!
Southeast Asia is proving to be a big contributor to SVOD as it added about 4M paid subscription video-on-demand (SVOD) accounts since 2019. This number is expected to grow to 6.2M subscribers by 2022!
So, how do you capitalize on this? There are various ways. If you’re looking to increase your subscriber base, there is one sure shot way to do this. Whether festive season or not, what better way to promote your SVOD platform than gifting freebies?
How Freebies Can Benefit SVOD?
Millennials are most likely to exist sans Pay TV. From various surveys on behavioral patterns, it is found that most of them wouldn’t mind cutting the cord and thus spend far more time with streaming content on devices.
Also, SVOD is no longer the province of giants like Netflix and Hulu. New, small and local players too are deploying this subscription model to boost their revenue flow using mechanisms like promotions, freemiums, free trials, coupons, etc.
How Does This Gifting Work?
The SVOD gifting mechanism is easy to implement provided you have access to the right subscription management platform that offers flexibility to tweak promotional offers, coupons, discounts, etc. catering to individualized customer profiles.
Magnaquest’s Sure is one such future-centric solution that can help your SVOD radicalize in all dimensions. Its flexible order management and product catalogue are dovetailed to customize various combinations of freebies like event-based/ generic promotions, where discounts can be applied at the beginning or end of the subscription term, after completion of the term or for a specific duration. Promotions can be defined for multiple plans at a time or can be specified to set off offer which is part of the promotion.
Winning back your churned customers becomes as easy as abc with Sure’s robust features that entail usage-based, churn-based, plan-based, or geo region-based customer segmentation. It’s a very simple process that lets you configure segmented targeting of customers for any promotions/coupons/discounts/free trials/freemiums and you can flexibly offer diverse freebies with set time limits.
By integrating gift cards and freebies with Sure’s dynamic product catalogue, you can gain new subscribers, increase lifetime value per user, cut down churn and keep broadening your subscriber VOD base, which over time, will emerge into a much higher ROI (Return on Investment) and will step up as your trusted recurring revenue source.
Although gifting SVOD might sound like a great way to enlarge your subscriber-scape, please be aware that this is a two-way street. To some recipients, this might not be a huge gift after all. Password sharing within families, siblings and friends is widely prevalent and you might actually end up rewarding the ones already in the game.
All said and done, it still remains a great idea to gift freebies and get your SVOD up and going. Despite your business size, the happy festive times call for a business-upping gesture and now is the best time to do this!