What is SVOD?</STRONG></H2><P class="" style="white-space:pre-wrap;">SVOD (Subscription Video-On-Demand) has been the main driver of change in the TV business over the last decade. Led initially by Netflix and Amazon Prime, the sector has transformed the way audiences engage with TV content – disrupting traditional free TV and PayTV models in the process. </P><P class="" style="white-space:pre-wrap;">Put simply, SVOD is a direct-to-consumer model where people pay a monthly fee for access to a range of high quality shows. For the most part, these services cost between US$7-$11 (or the local equivalent) and give users the opportunity to watch content across various platforms and via multiple log-ins (for different family members). Sometimes, there is the opportunity to access additional high end content for a one-off payment (eg a blockbuster movie launch).</P><P class="" style="white-space:pre-wrap;">In the early days, services like Netflix were highly dependent on acquiring catalogue content from existing studios, but these days the primary appeal of such services is originations. Netflix alone is spending $17 billion a year on content, with the lion’s share going into scripted originals like The Crown and Stranger Things and true crime documentaries. In recent times, the platform has also placed increased emphasis on TV movies to sit alongside series. Worth noting is that the term originals is a slightly moveable feast in SVOD. Alongside the shows that leading platforms directly commission, they often acquire shows from one country and present them to other countries as originals.</P><P class="" style="white-space:pre-wrap;">In the first phase of growth, SVOD was seen as a challenger model, with traditional media companies continuing to base their businesses around network advertising and PayTV subscriptions. 2020 saw a pivot, however, with US majors launching SVOD services such as Disney+, HBO Max and Discovery+ (the latter two have just announced plans to merge). With ViacomCBS also rolling out Paramount+ around the globe in 2020/21, SVOD is generally acknowledged to be the place where high value TV content debuts.</P><P class="" style="white-space:pre-wrap;">Netflix, Amazon Prime and the US studio SVOD services are the dominant players in this sector, but there is another big tech rival in the shape of AppleTV+. Local broadcasters are also exploring whether there is enough spending power in major markets for regionally-focused platforms. In the UK, for example, leading domestic broadcasters ITV and the BBC have launched BritBox. </P><H2 style="white-space:pre-wrap;"><STRONG>What is AVOD?</STRONG></H2><P class="" style="white-space:pre-wrap;"><STRONG>AVOD </STRONG>(Advertiser-funded Video On Demand) is a fast-growing tranche of the VOD business that offers consumers access to a range of content either free, or at a lower price point than SVOD. Key players include NBC Universal’s Peacock, ViacomCBS’s Pluto and Fox Corp’s Tubi, though social media platforms like Facebook Watch and Google-owned YouTube are also relevant here.</P><P class="" style="white-space:pre-wrap;">As its name implies, AVOD’s reduced price range is possible because the content is accompanied by ads (whereas SVOD is ad-free). For the most part, AVOD content is in less demand than SVOD content – either because it has been seen before or because it is lower budget. Typical AVOD content includes rights-free back catalogue and factual originals (though even this can often prove too expensive for AVOD platforms). Tubi, for example, is built around reruns of Fox shows like The Masked Singer and content picked up from third parties. An example of the latter is non-US versions of Endemol Shine’s <EM>MasterChef. </EM>Also available via Tubi is a dedicated kids service and live streaming news.</P><P class="" style="white-space:pre-wrap;">The AVOD/SVOD distinction is blurred slightly by the fact that some of the major players are actually pursuing a hybrid model that includes both. Peacock, for example, has three tiers ranging from free to $9.99 per month. This is working well for the company, which reported around <A href="https://www.adexchanger.com/digital-tv/comcast-beats-earnings-estimates-and-peacock-hits-42-million-subscribers/#:~:text=Comcast%20Beats%20Earnings%20Estimates%20And%20Peacock%20Hits%2042%20Million%20Subscribers,-by%20Tony%20Rifilato&text=Share%3A" tabindex="-1">42 million users</A> by Q1 2021. Pluto TV, although a dedicated AVOD service, is regarded by ViacomCBS as an opportunity to trade consumers up to SVOD offering Paramount+. In the long run, this may turn out to be Pluto’s most lucrative contribution to the group.</P><P class="" style="white-space:pre-wrap;">YouTube shouldn’t be taken for granted in the AVOD context. There is still a tendency to think of it as a UGC/influencer platform (cat videos, cosmetic makeovers etc). But the platform now has a formidable content creation division that is ramping up its investment in factual programming (eg A UK Drill Story).</P><H2 style="white-space:pre-wrap;"><STRONG>What is BVOD?</STRONG></H2><P class="" style="white-space:pre-wrap;">Technically, <STRONG>BVOD</STRONG> (Broadcaster Video-On-Demand) could sit within both the AVOD and SVOD categories, but it’s actually easier to understand if it is broken out as a separate section. Put simply, BVOD envisages a situation where incumbent broadcasters have launched on-demand offerings as a way to protect their existing market position. Platforms like BBC iPlayer, ITV Hub (both UK), Joyn (Germany) and 7plus (Australia) are all examples of predominantly free-to-air channel operators segwaying into the on-demand sector. Now TV, Viaplay and Stan, meanwhile, were all moves by PayTV operators to defend their core revenue streams from erosion by SVOD players including Netflix.</P><P class="" style="white-space:pre-wrap;">The first group (ITV Hub etc) are designed to help audiences view their content however and whenever they want. In doing so, they maintain the levels of engagement required to drive revenues. Often the content in this group is catch up content – ie a short window aimed at audiences that couldn’t watch a show at its appointed time. But as these platforms have matured they have also started to offer drama box sets and, in some instances, live content. In the case of Joyn, the proposition has matured to the point that there is a premium tier.</P><P class="" style="white-space:pre-wrap;">The second group are, in effect, PayTV-sanctioned SVOD offerings intended to be price competitive with the pure-play SVOD platforms. The downside of services like Sky’s Now TV is that they can cannibalise their own company’s PayTV subscriptions. The upside is that they can provide an entry point for customers who may then trade up to PayTV, broadband, telephony etc.</P><H2 style="white-space:pre-wrap;"><STRONG>What is TVOD?</STRONG></H2><P class="" style="white-space:pre-wrap;"><STRONG>TVOD</STRONG>, or Transactional Video-On-Demand, primarily functions as an additional offering laid over the top of SVOD. Typically, it involves buying a specific piece of super high end content – similar in character to PPV Sport. For example, an Amazon Prime customer gets an array of shows plus free delivery as part of their basic monthly subscription. But in addition they can also rent specific movies (eg new releases). Sky Store operates along similar lines, offering Sky customers the option of buying/renting a new movie for a one off fee.</P><P class="" style="white-space:pre-wrap;">TVOD and PPV can be used in a tactical way. They might, for example, be deployed to entice audiences that don’t want to sign up to a subscription commitment – in the hope that those audiences are then persuaded to make an ongoing investment. Or they might be used to target audiences that only want very specific pieces of content - eg Liverpool vs Everton once a year. The latter lends itself to scenarios where customers want to invite a few friends over.</P><P class="" style="white-space:pre-wrap;">In theory, any kind of content can be offered in this way – for example an early premiere of a new drama series that is creating a lot of buzz. In practice, overuse of TVOD can irritate consumers, who feel like they are paying for content twice. That’s why, typically, it is restricted in usage to hot movies and sport.</P><P class="" style="white-space:pre-wrap;">TVOD doesn’t have to be delivered by one of the major SVOD platforms, but it is usually embedded within a platform that can provide an in-built marketing push. A new movie floating freely on the internet will find it hard to gain traction. </P><H2 style="white-space:pre-wrap;"><STRONG>What does EPG stand for?</STRONG></H2><P class="" style="white-space:pre-wrap;">The EPG, or Electronic Programme Guide, is an onscreen interface between audiences and content. These days, with SVOD and AVOD a core part of the viewing experience, it’s perfectly possible that a TV viewer will need to navigate 3 or more EPG home pages in order to find what they want. A Sky TV subscriber, for example, will typically start on a Sky homepage which offers a broad range of signposts towards content. This could include live linear channels, on-demand series or TVOD movies. In addition, the same EPG will also include tabs that enable access to SVOD and AVOD destinations such as Netflix, Amazon Prime, Disney+, Discovery+ and YouTube. Click on any of these tabs and the viewer will be confronted with a new EPG for the service in question. On top of this, the Sky EPG will provide access to the BVOD offerings outlined above (eg ITV Hub).</P><P class="" style="white-space:pre-wrap;">EPGs used to prioritise linear channels, but these days they typically start by presenting content in the form of an on-demand-style selection box. If a viewer wants a particular linear channel, they usually need to go to a second page.</P><P class="" style="white-space:pre-wrap;">The modern EPG is much more than the programme guide its name suggests. It is a promotional tool that can highlight one piece of content over another (a new movie or series, for example). It is also a search engine that allows audiences to go hunting for what they want. Currently, this is mostly done via remote control, but voice assistance is playing a growing role in managing EPGs. Most EPGs contain personalisation technology, allowing the platform owner to recommend content that fits a viewer’s taste (and also push targeted ads at them). It’s also generally possible to continue watching a show already started during a previous session – a functionality that is a key consideration for most viewers.</P><P class="" style="white-space:pre-wrap;">The scenario above imagines a viewer entering via a PayTV EPG. But the actually EPG entry point will depend on the device that a viewer is using or the platform they are comfortable with. SVOD services Netflix, for example, can be accessed directly via the internet or a mobile app – with the EPG looking pretty much the same as if reached via a third party service such as Sky. The same is also true for BVOD platforms like ITV Hub, which can be accessed directly online. Underlining the point about promotion, ITV Hub’s homepage promotes sister service BritBox prominently, making it possible for viewers to click straight through.</P><P class="" style="white-space:pre-wrap;">A final note on EPGs is that usually viewers will need to provide login details to get access to content. This provides media owners with a basic data profile which they can seek to monetise via advertising and subscription sales. </P><H2 style="white-space:pre-wrap;"><STRONG>What does OTT mean?</STRONG></H2><P class="" style="white-space:pre-wrap;"> A lot of digital TV terms are used interchangeably – meaning it is hard to really tell the difference between them. In any given week, for example, you’re likely to see Netflix referred to as a streamer, an SVOD platform and an OTT service, without any real distinction being made between definitions.</P><P class="" style="white-space:pre-wrap;">In basic terms, Over The Top (OTT) refers to any service that provides viewers with access to content by sending it through the internet. Netflix, Amazon Prime Video, and Hulu are all OTT services, as is global sports platform DAZN.</P><P class="" style="white-space:pre-wrap;">Most references to OTT come in relation to the major media players, but the internet has also enabled a myriad of niche OTT services to launch. Many have failed to gain traction with audiences, but the likes of Acorn, Hayu, Shudder and Crunchyroll have all established themselves as viable players in the wider TV ecosystem. One area that seems to lend itself well to niche OTT services is premium sport, with MLB.tv establishing itself as a major player outside the traditional PayTV platforms. Esports platform Twitch has also used the power of the internet to build a massive global meeting place for avid gamers</P><H2 style="white-space:pre-wrap;"><STRONG>How about Fast Channels?</STRONG></H2><P class="" style="white-space:pre-wrap;">This is another category which overlaps with earlier definitions, since Fast Channels are likely to be both OTT and AVOD in character (ie ad-supported and delivered over the internet). In a nutshell, Fast Channels are free channels that can be either on-demand or linear in character. For the most part, they are reliant on archive content rather than originations. Typical of the shows that might find their way into Fast Channel schedules are indie movies, old network TV series (some very old), and short form/UGC videos.</P><P class="" style="white-space:pre-wrap;">A+E Networks is one of several media companies that is using library content to grow a portfolio of Fast Channels. Its rationale for doing so is data that suggests large numbers of viewers are not active in the PayTV arena where A+E usually plies it trade. Channels launched by A+E to date include Lively Place, Crime 360 and Skills & Thrills, Among the shows to feature on the latter are older episodes of Ice Road Truckers and Top Gear, which just goes to show that there is some decent content to be had. Underlining this point, AMC Networks recently launched a suite of Fast Channels on Pluto TV, with content such as The Walking Dead, Into The Badlands and Halt and Catch Fire all made accessible.</P><P class="" style="white-space:pre-wrap;">Sometimes, the likes of Pluto and Tubi are referred to as Fast Channels, but it is probably better to think of them as AVOD platforms or aggregators, offering a wide array of content rather than a single narrative strand. Fast Channels are usually described as 24/7, but often their content is repeated on 4/6 hour cycles.</P><P class="" style="white-space:pre-wrap;"> </P></DIV></DIV></DIV></DIV></DIV></DIV> <DIV class="blog-item-injection"><DIV class="sharethis-inline-share-buttons st-center st-has-labels st-inline-share-buttons st-animated" id="st-1"><DIV class="st-btn st-first" data-network="facebook" style="display: inline-block;"> <IMG alt="facebook sharing button" src="https://platform-cdn.sharethis.com/img/facebook.svg"/> <SPAN class="st-label">Share
