Why and how to ride the SVOD trend?


Subscription Video on Demand (SVoD) consumption in France has accelerated sharply in 2017. To meet the demand, we have prepared for you some tips for a successful entry into this market.

The subscription video-on-demand model has conquered more than one. Last August, the Walt Disney Company announced the creation of its SVoD platform for 2019. For good reason: the SVoD has gained 40% of users in one year, according to a study by Mediametrie (*) in November 2017. In this article we looked at this study to give you some good practices and success criteria to address this market.

What does SVoD stand for ?

The Subscription Video on Demand (SVoD), is the equivalent of renting DVD in a physical shop, but online.

It consists of watching part or all of a video catalog of a platform (series, films, cartoons, short films, professional training, coaching or tutorials) through a subscription for a given period, for a monthly or annual fee.

This is the case of well-known platforms like Netflix or OCS, but also French actors like Tënk, which offers documentaries of authors and whose platform is published by Kinow.

SVoD is an overwhelming success

The Mediametrie agency published a study dating from November 2017, on the progress of video-on-demand subscription in France. The study reveals a strong growth of the SVoD, more than 40% of additional users in one year.

Thus, in 2017, 21% of Internet users say they use an SVoD service against 15% in 2016. In addition, these users are 83% used to pool their subscription with at least one other person.

This growth, which reveals new habits of video consumption, was brought by the arrival of Netflix in France, in 2014. Since then, still according to Mediametrie, nearly 9 internet user out of 10 can name at least one platform of SVoD.

tendances de la svod

The SVoD has succeeded in retaining these followers since 44% of Internet users use their video-on-demand platform every day and 41% have renewed their subscription in 2017.

The SVoD has managed to make a significant place in the French audiovisual landscape and new uses are being created. To put all the odds on your side to successfully complete your own platform, there are some common sense rules to follow.

Success criteria for your SVoD platform

Invest in exclusive and original content

Quality and quantity must be the watchwords of your catalog, Internet users expect a rich and varied content, and if possible without advertising.

According to Mediametrie, 46% of users want to access a large number of videos, series being the most popular, followed by cartoons and films.

If you have a series catalog, facilitate binge-watching. It’s a practice of "watching between two and six episodes of the same TV show in one sitting" studied Netflix. To follow the trend, you can put online all the season of one of your series.

But that's not all, consumers are looking for local productions (in this case : French production) since 2 users out of 3 make it a criterion of choice.

Internet users also want to view original creations and exclusive content as demonstrated by the Mediametrie study.

Finally, you must be ready to feed your users in new products regularly, which requires a significant financial investment.

Get software that meets your customers' expectations

To start on a good basis, you will have to choose between Software as a Service and a solution developed by yourself. We can only advise you to opt for SaaS model given its benefits and the savings you will achieve.

In any case, you must be responsive about the features of your software and the user experience. According to Mediametrie, users particularly appreciate features such as resuming playback of a program on another medium or access to the platform on several screens. Very trendy, the creation of personalized libraries, and contents in offline mode are also very appreciated, even though it can be a real challenge for software editors.

In your solution, you must benefit from a feature-rich back-end technology that includes: a server that allows you to broadcast your content quickly and in high quality, Digital Rights Management (DRM) protection that will secure your content, a PCI (Payment Card Industry), and if you choose a SaaS platform, make sure to buy a white platform on which you will be able to affix your logo and your universe.

Do not forget to inquire about the APIs that can be connected to your software. For example, an API to support live streaming, is more and more requested by Internet users and can be a real advantage for your business according to your needs.

Choose your income model

It sounds obvious but choose wisely your income model: subscription, transaction or advertising. When we talk about SVoD, we are on a subscription model. Keep in mind that people are getting more and more tired of advertising.

Internet users appreciate the flexibility of these solutions, the ability to stop and resume their subscription at any time, without delay and without constraints.

Finally, the first criterion for membership according to the Mediametrie study: it is essential to offer attractive prices.

Some practices such as the possibility of sharing an account, have already attracted a good number of users who have seen a good way to reduce the cost of the subscription.

It is obviously important and unavoidable to conduct a study of your market and competition to know what type of content to offer and at what cost. It is best to avoid duplicating the content of competitors and to stand out with original content that will make your success.

Don’t forget to communicate!

Once your SVoD platform is launched, expand your community!

Do not forget your marketing strategy: communicate on your platform and on your catalogue  to win your users’ loyalty and reach new customers.

And one of the best ways to make yourself known, is to talk about yourself! Do not hesitate to contact websites or databases of journalists to optimize your website and become the SVoD platform reference.

A simple strategy is to broadcast free trailers and teasers to make users want to subscribe and watch  the whole movie! You can also choose to make flash promotions to convert the reluctant.

If you are looking for a technical solution to launch your SVoD platform, contact us so that we can find together the most suitable solution for your activity.

(*): mediametrie carries out audience measurement and marketing studies of audiovisual and interactive media in France.