SVOD (Subscription Video On Demand) is a service that offers users unlimited access to a wide range of programs for a monthly flat fee.
While the SVOD landscape has been revolutionized by the advent of Netflix, it is now the subject of a fierce battle between various players such as Disney, Amazon Prime and Canalplay, which face very high acquisition costs.
Netflix stated: "We cannot buy everything under license and we keep our prices low. We are therefore looking for titles with the highest audience in terms of licensing costs. It also means that we will either waive or choose not to renew certain titles that are not sufficiently viewed in relation to their costs."
That is why it may be advantageous to choose specialization to differentiate yourself. Indeed, the niche SVOD is a way to compete with the general SVOD.
Niche SVOD: an opportunity
Two-thirds of SVOD's global services are aimed at the general public. We can then clearly underline the existence of a real opportunity in the market of niche video content, which are ultra-specialized SVOD platforms that have appeared in recent years and are directly aimed at a specific and targeted audience.
It is important to note that this audience is looking for accuracy and precision in content, unlike the universal approach used by the largest SVOD platforms, which nowadays aim to satisfy the general public. The aim is to offer more depth to content libraries rather than to expand, in order to attract small but extremely loyal audiences.
The niche SVOD offers highly differentiated video catalogues adapted to its customers. For example: authors documentaries, short films, independent films, content dedicated to youth, to music or even a catalogue dedicated solely to the cinema great classics.
Tënk, which is a broadcaster but also co-producer of new documentaries, has become the first SVOD platform entirely dedicated to this genre. The team wanted to highlight films from the 1960s to today in SVOD on a dedicated interactive platform. Kinow not only provided the video platform but also takes care of the hosting, daily maintenance and integration of Tënk's graphic identity (carried out by 50A Agency).
Bref for example, is for all lovers of the 7th art who are curious to discover the best of short films. The ambition is to create a link between those who make short films, those who broadcast them and those who watch them. Kinow has taken up the challenge of integrating and enabling the distribution of a catalogue of short films through a creative interface designed by Opixido Agency. The platform Bref has 3 different SVOD subscriptions packages (annual, monthly and for students). There is also a full subscription offer that combines unlimited access to the entire platform and a special price for the magazine.
Other examples of niche platforms:
- LaCinetek is a niche platform designed by directors from all over the world, who were able to choose the feature films that are now available on the platform. According to the CNC, LaCinetek has 960 films from 60 different countries, including 200 unpublished works only available on this platform.
- Gulli Max and TFou Max are niche platforms dedicated to children. They are inexpensive and provide secure access to thousands of cartoons ad free.
Why should a cinephile adopt the niche SVOD?
- To find unique content
General SVOD services offer mass content, that is to say a selection of videos that will satisfy the greatest number of people. As a result, it will become increasingly difficult to find specific content on general SVOD services. For example, for movie-lovers looking only for "great cinema", it will become increasingly frustrating for them to browse and search on universal SVOD platforms that offer a selection for the general public, which means more content to sort from. The challenge is to make the catalogue relevant and easily navigable for interested consumers. In this spirit, niche SVOD services must ensure that their film catalogues are presented intelligently and are easy to navigate.
- For the expertise
People working for these SVOD platforms are considered experts in their field. The selected films, written opinions or film suggestions are in accordance with a carefully defined editorial line.
The field of sport is currently booming. Indeed, sports services represent 12% of the world's SVOD ( France owns 3% of the global offer, with amateurs certainly preferring live broadcasting to repeat broadcasting*). To illustrate this example, we can mention the platform DAZN, released in 2016, which is the first service truly dedicated to live sports broadcasting in the world. DAZN offers live and on-demand broadcasting of sporting events, available on various devices (computers, mobile devices, tablets, decoders, smart TV) and even on video game consoles. The platform is now available in many European countries such as Austria, Germany and Switzerland. In addition, in the Americas (Canada and the U.S.) and finally in Asia (Japan). A launch in Brazil is also planned for 2019.
Another example is Equidia, the television channel dedicated to horse racing, which has completely overhauled its digital strategy: a new visual identity, a new website and new services. Kinow’s online video platform solution allows Equidia to monetize its races by monthly subscription, live and replay. For €5.99 per month, subscribers can access a catalogue of more than 50,000 races with live broadcasting and replay.
The content and recommendations of these new SVOD services will be more reliable for subscribers. These platforms gain a form of expertise and skills in their field and can thus position themselves as a real media.
In addition, Amazon recently acquired sports rights for Amazon Prime for online broadcasting ( American football, tennis)... This is a sign that the platform is seeking to acquire content to compete with certain niches.
- For the community
Niche platforms bring together committed and active customers around content that fascinates them, creating a certain dynamic. From then on, a real intra-community closeness can be formed (the community can exchange between itself, give its opinion on the film catalogue, rate the films...).
- Because there's room for everyone
Source: Deloitte Digital democracy survey
In an increasingly sophisticated digital landscape, the niche potentially represents a third of SVOD's global services, that is to say a significant place.
In addition, video-on-demand is widely accessible and adopted by 64% of households. Concerning the behaviour of young people, we can hypothesize that subscribing to a general SVOD service (such as Netflix) as well as to two other niche services related to their passions is therefore not only possible but also in the spirit of the times!
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