Mumbai: The consumption landscape in media is evolving drastically. Streaming services have driven about a revolution when it comes to media consumption. It is a thing of the past that viewers were bound to linear television schedules. Today, the list of different models for delivering digital content ranges from TVOD (Transactional Video on Demand), SVOD (Subscription Video on Demand), AVOD (Advertising-based Video on Demand), and HVOD (Hybrid Video on Demand). Each mode has its upsides and downsides, but the thing one must ask is: what do viewers prefer as they choose to opt for one model over another?
Let us take a closer look at how TVOD has changed consumer behavior and what sets it apart from SVOD, AVOD, and HVOD with a focus on understanding what drives viewers towards one platform and service model as opposed to another.
Transactional Video on Demand (TVOD)
TVOD is one where viewers pay for one piece of content. Instead of signing up for an entire service or watching with ads, viewers may be able to pay once for a movie, episode, or series rental or purchase. Platforms that use the TVOD model include iTunes, Google Play Movies, and Amazon Prime Video-where viewers can rent or buy individual titles outside of its subscription offering.
Types:
● EST (Electronic Sell Through) - The customer buys the content, and it belongs to him or her permanently.
● DTR (Download to Rent) - The consumer downloads the content for a specific time period, usually 24-48 hours after which he or she will not be able to avail the content.
Consumer Behaviour and TVOD
The primary attraction of TVOD is flexibility. Consumers can choose only that content in which they are genuinely interested and skip recurring subscription fees or advertisers' assaults. This is very appealing to those who consume media in a spotty fashion or are mostly interested in new releases, premium content, or films not distributed on subscription platforms.
Benefits of TVOD
1. Exclusivity and premium content for pay: TVOD, as a unit compared with the others, typically carries new releases and premium content that are not found on the other platforms. The consumers who want to keep up with the newest blockbuster films or series will not mind paying.
2. Control and Flexibility: TVOD allows viewers to never have to pay a monthly fee with the firmness that says they can spend their money when and how they choose to. If you watch only one or two movies a month, then this is a cheaper option in comparison to most SVOD services.
3. Ownership: Est makes it possible to allow the user who buys content in TVOD to own content which then allows him/her to access whatever they have bought at any time. That is what increases an appeal to consumers looking to create digital libraries.
4. No Commitment: TVOD does not require contractually long subscriptions. People enjoy the ability to consume content on a transactional basis, not obligated to commit long-term for recurring subscription payment.
The downside of TVOD
TVOD’s drawback is that costs can add up quickly. Several purchases per month can easily escalate into a sum more expensive than an SVOD subscription, especially if the consumer has large viewing appetites. And if one isn't sure about the quality or appeal of content, the upfront price can be daunting.
TVOD Vs SVOD, AVOD and HVOD
Each of the delivery models attracts a different kind of consumer. Media companies interested in optimizing services understand the nuances in consumer behavior across such models.
SVOD (Subscription Video on Demand)
The SVOD model refers to platforms like Netflix, Hulu, and Disney+ that grant viewers access to their respective catalogs for a fixed monthly or annual fee. During the subscription period, consumers have unlimited access to the catalog.
Consumer Behaviour in SVOD
- Binge-Watching Culture: SVOD made binge-watching trendy, where all the seasons and even the whole catalog can be binge-watched without interruption using SVOD. The advantage of uninterrupted viewing, which users prefer to make a "content buffet."
- Cost-Efficiency: For frequent viewers of content, SVOD seems cheaper than TVOD. To them, paying a monthly fee for access to thousands of titles is perceived as better value than paying for individual titles using TVOD.
- Loyalty and Engagement: The SVOD focus is on brand loyalty through original programming, exclusive content, and user-friendly interfaces, for they come back with constant updates in the content catalog.
- No Interruptions: Most SVOD services are ad-free and attract those who enjoy an unbroken experience.
The downside of SVOD
The disadvantage of SVOD is content saturation. With this much content, it is easy for viewers to be overloaded or lose interest in any title. More importantly, the popular content may become outdated and removed from the platform, thereby leaving subscribers unhappy with the fact that their favorite shows or movies are no longer available.
AVOD (Advertising Video on Demand)
AVODs, such as YouTube, Tubi, and Peacock (free tier), are free to consumers but advert-driven. Consumers must watch advertisements to be able to see the content.
Consumer Behavior on AVOD
- Price Sensitivity: AVOD appeals to the price-sensitive customer who is willing to pay in terms of inconvenience of ads for free content access. It appeals to casual viewers, who are less likely to commit than to a paid subscription or one-time TVOD purchase.
- Ad Tolerance: The very first compromise viewers have to make is advertisements along the way. Perhaps viewers who want it to be seamless and continuous would not find AVOD palatable. However, the younger audience - including Gen Z and Millennials - are accustomed to ad-supported content as the case is with YouTube platforms.
- Broad Access: AVOD platforms enjoy a wide, varied library entries, although, less of new releases and premium compared to SVOD or TVOD.
The downside of AVOD
The critical drawback it has is dependency on ads, which can be disturbing for the viewer. For content creators, AVOD may not always prove the most financially rewarding, due to fluctuating ad revenues.
HVOD (Hybrid Video on Demand)
HVOD is a combination model that carries both a subscription model and an ad-supported model. It falls between SVOD and AVOD as it meets the demand for services that charge less for the subscriptions with a monetization of ads to offer premium content to the consumer.
Consumer Behaviour in HVOD
- Middle Ground: The model speaks to a consumer who wants premium content at a lower price but who would be willing to tolerate some ads in order to access it. This model has typically attracted consumers because consumers are seeing it as the best of both worlds, such as lower subscription fees with some inconveniences from ads.
- Personalisation: With most HVOD services offering an ad-free tier at a higher subscription price, it leaves the burden on the consumer's choice on how they prefer to enjoy the show. This is appealing for those who want to balance cost and convenience in achieving their viewing needs.
However, with this ad-subsidized nature of HVOD platforms, the end-users get frustrated and annoyed to have uninterrupted viewing without having to pay extra for the ad-free view.
What do viewers really want?
The choice among TVOD, SVOD, AVOD, and HVOD majorly depends upon the individual preferences and the modes of preference. Now, let's take a look at what drives consumer behavior across these models:
1. Convenience: Consumers prefer convenience and accessibility. Consumers seeking to watch all the content at one place without breaks gravitate toward the SVOD platform. For new releases to be watched immediately without making a subscription, consumers are drawn toward TVOD.
2. Cost Sensitivity: Cost-sensitive consumers will gravitate to AVOD for free content availability, no matter the price they have to pay in terms of watching advertisements. Heavy content consumers will benefit more by paying for the SVOD subscription.
3. Personalisation: TVOD and HVOD Provide for a lot more personalization. With TVOD, the viewer can essentially pay for just what they watch while with HVOD subscription terms and ad exposure offer options and an avenue for variation. Personalization has been the new battleground as more competition bids for the users that crave more control over how media is consumed.
4. Ad Tolerance: AVOD as well as HVOD models test out the tolerance for ads. The young viewers will be more likely to accept ads if that content would stream free or at a lower price.
TVOD meets the appetite for premium, flexible content access - mainly, for viewers reluctant to invest in a subscription. On the other hand, SVOD leads in very large libraries and binge-friendly experiences and AVOD, HVOD in cheap content at an ad compromise. All this understanding lets them better serve their audience through content that really resonates with expectations.
