WTH is right—as the media and entertainment industry expands, so do the abbreviations.
Although they are common for those in the industry, they may not make sense to the general public. Here’s a guide to help you understand the need-to-know terms in the entertainment industry.
Over-the-top (OTT) is a general term for any film or TV content delivered via the internet. Another way to think of it is, “how to watch content when you’ve cut the cord.” OTT content allows consumers to be able to watch what they want, when they want, where they want.
Consumers are no longer restricted to viewing content via a tube TV with an old cable box—OTT content can be accessed nearly anywhere. Want to watch your favorite ’90s comedy at 3:00am? No problem! This is why OTT content has had momentous growth in popularity, dropping traditional TV and satellite use from 76% in 2015 to 56% in 2021.
The granddaddy of them all is video on demand (VOD). This service allows consumers to watch the content they want on their own timeline. This means the days of siblings fighting over the remote to put their show on is over—VODs make it possible to watch content anytime.
You may not be aware of the term, but you’re most likely using some version of a VOD service. In fact, if you’re in the US, there is an 80% chance you are.
VOD has been a major player in the cord-cutting trend. In fact, 77% of Americans reported being happy with the flexibility and offerings of VOD services over traditional cable packages.
SVOD (SUBSCRIPTION VIDEO-ON-DEMAND)
Subscription video-on-demand (SVOD) is a subdivision of VODs. For SVODs, there are logins for subscription packages required to gain access to the content. Examples of this type of content include:
- Prime Video
- HBO MAX
By the end of 2021, the dollar amount of SVOD subscriptions will reach $70.9 billion. Forecasts also show an increase of 491 million subscriptions by the end of 2026.
AVOD (AD-BASED VIDEO-ON-DEMAND)
Another subdivision of VODs is ad-based video on demand (AVOD). This model provides free streamed content to viewers with the caveat of advertisement breaks.
There are essentially two ways that this can work. On YouTube, for example, you can watch all of its content at no cost. However, you’ll have to watch non-skippable ads, depending on who provides the content.
The other alternative is more of a “freemium” offering—NBC Universal’s Peacock platform is a great example. In January 2021, the hugely popular American hit The Office streamed exclusively on the Peacock app. Users were able to watch the first two seasons for free (with ads), while seasons three through nine required payment, changing the AVOD to an SVOD.
Other popular AVODs include:
- Roku Channel
- IMDB TV
TVOD (TRANSACTIONAL VIDEO-ON-DEMAND)
Transactional video-on-demand (TVOD) is another VOD subdivision. This service is unique and focuses on niche events.
TVODs allow free sign-ups for the content, but payment is based on the content the user chooses to watch. For example, buying a pay-per-view football match is TVOD content. These pay-per-view services are projected to reach $9.3 billion in revenue for 2021. TVOD providers include:
- iTunes Store
- Sky Sports Box Office
- Google Play
OTT and VOD Content
Accessing OTT content through any one of the above services is a growing trend around the world. The market is projected to grow by $314.65 billion between 2021 and 2025.
While consumers have more access to more content at any given time, there is also more demand for media content and a heavy lift on production all across the globe.
Producers are looking for new content wherever they can find it, a prime example being Netflix’s recent viral series Squid Game. This Korean show was repurposed for new markets to provide via VOD services.
Ensuring your content is top-tier to stand out from the rest is a great way to promote your brand. Contact us today to learn how MediaNEXT can turn whichever abbreviation you’re part of global.