AVOD vs SVOD VS FAST: OTT Monetization models

In recent years, the surge in popularity and profitability of streaming video services has been remarkable. The digital media landscape has witnessed the emergence of diverse monetization models, including Free Ad-Supported Television (FAST), Advertising Video on Demand (AVOD), and Subscription Video on Demand (SVOD) models.

However, this evolution has also created new avenues for pirates to illicitly access premium digital content, making the industry vulnerable to piracy and unauthorized distribution. To combat these threats, it is imperative to establish a robust, multifaceted, and scalable content security framework that can accommodate various content distribution and ad-generation models, ultimately envisioning a piracy-free content consumption environment. In this context, let’s explore the different OTT content distribution models and underscore the vital role that content security plays in enhancing the user experience.

AVOD vs SVOD vs FAST : How are FAST, AVOD and SVOD different?

What is Free Ad-Supported Television (FAST)?

Free Ad-Supported Television (FAST) is a model in which streaming services offer free video content supported by advertising. This model has experienced a surge in popularity in recent years, with platforms like Pluto TV, Roku Channel, and XUMO gaining substantial traction. FAST is an attractive choice for viewers who prefer not to pay for premium content but are willing to tolerate advertisements.

FAST operates on the principle of scale to generate revenue from advertisers. As more viewers consume content, the ad inventory expands, thereby attracting more advertisers to the platform. Since the advertising revenue is shared with the content providers, FAST presents a mutually beneficial solution for all parties involved.

What is AVOD?

Advertising Video on Demand (AVOD), in contrast, permits viewers to access premium video content at no cost, with the condition that they watch advertisements. This model represents a step up from FAST, featuring higher-quality content and a more sophisticated advertising approach that tailors ads to the viewer’s preferences and demographics. A prime example of an AVOD streaming platform is YouTube.

AVOD can prove to be a lucrative model for both the service provider and content creators, as advertising revenue can be shared between them. However, the success of AVOD hinges on the platform’s ability to attract and retain a substantial audience, a task made challenging by the competitive nature of the market.

What is SVOD?

Subscription Video on Demand (SVOD) is a model in which viewers subscribe and pay a fee to access premium video content without encountering advertisements. This model has gained widespread popularity through services like Netflix, Amazon Prime Video, and Disney+. The appeal of SVOD lies in its provision of exclusive content, tailored recommendations, and an uninterrupted, ad-free viewing experience.

The revenue generation of SVOD hinges on nurturing a dedicated subscriber base. To achieve this, these services make substantial investments in creating original content to maintain subscriber engagement. The drawback of SVOD is that the subscription fees can be relatively high, potentially limiting the size of the potential audience.

Why FAST and AVOD need Multi-DRM and Forensic watermarking

While the primary revenue model for FAST and AVOD platforms is advertising, they still have an interest in protecting the value of their content and maintaining positive relationships with content owners. Therefore, they employ multi-DRM systems, either in-house or through third-party providers, to strike a balance between content protection and accessibility for their audience.

Implementing multi-DRM solutions allows these platforms to apply encryption and access controls to their content, limiting unauthorized viewing or copying. It helps prevent piracy and protects the rights of content owners. Additionally, multi-DRM solutions enable content providers to enforce usage policies, such as limiting the number of devices that can access the content simultaneously or setting expiration dates for downloaded content.

Forensic Watermarking, is other techniques can be employed to track and identify illicit distribution of content.

Sigma multi-DRM supports FAST, AVOD and SVOD models that allows your content business to maximize scalability and revenue potential through the OTT video route, all along ensuring a top-notch user experience. The security framework is flexible enough to enforce concurrent streaming experience across devices while providing premium user experience.

In conclusion, the choice of monetization model depends on the goals of the content provider. FAST and AVOD are great options for content providers who want to reach a large audience, while SVOD is ideal for those who want to generate revenue from a loyal subscriber base. Ultimately, the success of any model relies on the quality of the content and the ability of the platform to attract and retain viewers.