7 tips to monetize your SVOD package and reduce churn
Maximize your SVOD earnings and reduce churn with these tips.
Multiple subscription price points cast a wider net to attract a variety of potential subscribers.
Take New Zealand-based, Oscar-qualifying documentary film festival, Doc Edge, for example. By offering different price points for everyone, from the bingers to those just tuning in for the shorts, Doc Edge boosts revenues by casting a wider net to draw in viewers from every budget.
Rewards and referral programs
Encourage engagement with a rewards program that unlocks hidden content, invites to exclusive events, or promo codes and incentivises users to make referrals to friends and colleagues.
Event Cinemas’ program, Cinebuzz, merges the in-cinema and online experience to reward members with perks like free popcorn, exclusive events, special screenings, and discounts. They take it one step further by offering a variety of rewards programs to cater to movie lovers from all walks of life.
Offer free content
- Free trial periods give a taste of what you have to offer and give you the chance to showcase your value.
- Limited free content provides an easy entry point for on-the-fence viewers. Get them hooked with a free video or the ability to watch the first few minutes of anything on your site.
- Advertising free months with purchase satisfies viewers’ desire for a bargain.
Claire La Greca, Head of Marketing and Communications at Melbourne International Film Festival, has witnessed the power of free’s ability to monetize audiences first hand.
“We put all of our short films …. on [our Shift72 platform] for free. [It] was a really good way of onboarding people, getting them comfortable with the platform with very low stakes, and then, what we found was 80% of them went on to purchase something because they watched something….I would venture to say that the more free stuff you put on the platform, the bigger the box office winds up being at the end of the day. It brings people in and it builds their confidence.”
Combine monetisation models
In 2022, Netflix hinted at combining SVOD with AVOD, an ad-based model. And for good reason: the number of AVOD viewers is on the rise,1 with revenues projected to reach $70 billion worldwide by 2027, up from $33 billion in 2021.2
Basic or free subscriptions become ad-supported while premium accounts stay ad-free. It’s an attractive model, giving subscribers a low-cost (or free) option and additional revenue for businesses.
SVOD can also be combined with PVOD, or premium video on demand, offering premium content for one-off purchase. For businesses, this could translate to upselling live events, keynote speakers, or “Ask Me Anything”-style Q&A’s with special guests.
1 Konstantinovic, Daniel.Streamng Services Turn Their Attention to Ad-Supported Subscription Tiers.Insider Intelligence. Insider Intelligence, March 10, 2022
2Global AVOD Forecasts.Digital TV Research. Digital TV Research , May 2022
Partnerships and bundles
Even without combining SVOD with other monetization models, there are still ways to add revenue-generating partnerships to your platform
- Banner ads, sponsored collections of content, and sponsorship pages maximise exposure and highlight your partners.
- Bundling subscriptions with non-competing content providers is a massive value-add and connects you with new viewers without the ad spend.
- Cross-promotion with promo codes through partnering brands, podcasts, pre-rolls, newsletters, and social media posts increases signups.
Maximising your subscriptions is only half the battle. Keeping subscriber satisfaction high to reduce churn is where the real work begins.
If a subscriber feels they’re no longer getting value from their subscription, they’re quick to cancel and seek out other options. And without question, cost is the number one cause of SVOD churn. But it’s closely tied with the availability of exclusive and original content.
Combat churn by focusing on two factors:
- Price elasticity
Bouncing around with pricing and frequent price hikes leads to churn and dissatisfaction. The SVOD trend is toward stabilising prices for a minimum of 12 months at time, but the longer the better.
Tiered subscriptions, combining with AVOD, and adding sponsorships to your platform all help generate revenue without raising subscription prices and increase viewer satisfaction.
- Quality over quantity
Audiences are increasingly seeking content and value they can’t get elsewhere, which means that providers who focus on a specific mission with exclusive content keep subscribers satisfied for longer.
Focusing on your business’s specific strengths, expertise, and insights translates to value in the face of competitors and is the best insurance against churn.
The good news is that even if your subscribers do drop off, they’re likely to return if their perception of value changes.
3 Westcott, Kevin, Jana Arbanas, Chris Arkenberg, Brooke Auxier, Jeff Loucks, and Kevin Downs.2022 Digital Media Trends, 16th Edition: Toward the MetaverseDeloitte Insights. Deloitte, March 28, 2022.
Lure them back with new, exclusive content and pricing incentives that remind them of what you bring to the table.