AVOD monetization model gains strength on OTT platforms and consumer preferences


In the Mediastream blog we have told you that, in the last two years, content providers that offer OTT services are experimenting with new forms of monetization, in order to avoid the loss of users gained in this period. This is being seen even in giants like Disney+, which opted to provide the PVOD option with its ‘Premier Access’, in order to counteract the drop in box office revenues.

Another current trend is to go from SVOD to AVOD to 'subsidize' or eliminate the expense of the month to month membership. According to a study conducted by Future Today and the Variety Intelligence Platform (by Advanced Television), at least in the United States, more than half (50.6%) of customers prefer AVOD over other monetization options in order to reduce the costs of consuming content on demand.

According to Vikrant Mathur, CEO and co-founder of Future Today, ‘Consumer preferences continue to evolve. Streaming has become the default source for watching TV shows and movies, but not all services, platforms and models will thrive in this changing media landscape.’ He further added that ‘despite the expectations of some experts, we are seeing AVOD adoption prosper, and we expect this trend to continue to grow in the coming years. Our research consolidates that, with the right streaming experience, the ad-supported streaming model is ideal for content owners, brands and, most importantly, audiences.

Another relevant point of the study is that people find that the advertising of AVOD services is better segmented and is much more adjusted to their interests. Ads displayed during streaming sessions are twice as likely to be more relevant to the viewer. This increases even more in the 18-29 age segment, who find that advertising content is up to 4 times more relevant.

In addition to this, an attempt was made to measure user preferences in terms of linear and on-demand content. The result showed that 60% of the public prefer the latter type, and this is reflected across all age groups.

The time for a change is already here. Content distributors and OTT's are looking for all the ways to keep and add more users consistently and to monetize better their services.

Remember that when it comes to OTT services and monetization, Mediastream has years of invaluable experience. Ask us what we can do for you and your content with the button below.