The utilization of hybrid AVOD (advertising-based video on demand) and TVOD (transactional video on demand) business models is an enticing retention proposition in a budget-conscious economy.
Top TVOD services continue to increase for the most part. Amazon Prime Video's business model is a hybrid of TVOD and SVOD. The more consumers subscribe to Amazon's Prime subscription video on demand (SVOD) service, the less likely they are to purchase or rent anything à la carte on the TVOD service.
Over half of those who use transactional OTT services also use free ad-supported OTT. This means that viewers opposed to monthly membership prices may purchase or rent individual titles while still having access to the on-demand libraries and live linear channels of free, ad-supported services.
"Big Tech“ companies’ transactional video-on-demand (TVOD) services continued to dominate the market in the first quarter, growing or maintaining usage among consumers. These services benefit from the power and presence of their parent companies’ service and device ecosystems:
- Amazon – Prime membership base, and Fire TV platform Prime Video integration
- YouTube – preinstallation on many brands’ devices, and Android / Android TV / Google TV platform integration
- iTunes Apple device ecosystem integration
- Google Play – Android / Android TV / Google TV platform integration
- Microsoft Movies & TV – Windows platform integration
Preinstallation or platform integration deals are thus potentially of strategic benefit to streaming services, but the growth shown by NBA League Pass, VUDU, and AMC Theaters On Demand also shows standalone services with compelling content offerings can also fare well within the TVOD market.
This is a research excerpt from Parks Associates consumer survey of 10,000 internet households in the US, providing a nationally representative view of the market. Visit www.parksassociates.com for more information on our research products, services, and marketing activities.
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