There are no signs of slowing down in the growth of cord-cutting and streaming services. According to the latest forecasts from Digital TV Research, global SVOD subscriptions will hit 1.75 billion by 2027, an increase of 550 million from 2021. What’s more, Leichtman Research also found that nearly 6 in 10 US households have more than one SVOD service. In the last few years, SVOD platforms have become a commodity in millions of households.
Designing an Enticing SVOD Monetization Model for Your OTT Platform
Frictionless Subscription, Billing, and Entitlement Management
As SVOD matures globally, OTT platforms aiming for global expansion will need to cater to various regions and audiences differently. This can be in terms of creating subscription packages with distinct content bundles as well as setting-up tiered pricing structures and payment provider integrations. We previously introduced the various OTT business models and the factors that determine the most suitable model for a provider. Here we will talk about how you can set up an enticing SVOD business model for your OTT platform using Axinom Mosaic.
Setting up an SVOD Business Model
Axinom Mosaic offers frictionless content monetization that operates as a part of your content management system. It enables you to maximize the revenue potential of your SVOD platform through tailored business models based on content type, region, and audience. The solution is powered by a constellation of Mosaic services. The Monetization service allows you to define what subscription plans are available, how subscribers can pay for them, and what they are entitled to once they are subscribed. Related end-user-facing services to the monetization workflow include Axinom Billing, which handles payment provider integrations and billing your subscribers, and Axinom Entitlement for implementing content entitlement rules.
Setting up an SVOD model can be dissected into multiple steps. The first is organizing your workflows for subscription and billing management; this is where you define what subscription plans are available to your end-users and how they can pay for them. The second step is entitlement management, which is where you define what your end-user gets access to once they’ve subscribed to your streaming service.
Subscription and Billing Management
Axinom Monetization offers subscription and billing management workflows that allow you to define subscription plans/options based on different tiers, e.g., basic, regular, and premium. Each subscription plan can be associated with one or more payment plans, such as monthly, quarterly, and yearly. Payment plans can then be assigned with multiple payment providers such as PayPal and even other third-party payment providers through the bring your own payment provider option. Each payment plan can carry different prices and currencies for each country you serve.
On the other side, each subscription plan will grant different levels of entitlement to your end-users. These entitlement entities are defined as bundles and claim sets, which serve various business use-cases. Content bundles allow you to combine your assets into custom groups of content to which your end-users can be conferred entitlement. These lists of assets are formed outside of Axinom Monetization through Axinom Media which extends a micro-frontend to the Monetization service for creating, managing, and assigning content bundles to your subscription plans.
Claim sets enable flexible control over defining and assigning various entitlement rules. For instance, access to different streaming qualities (SD, HD 4K, etc.), the ability to download content for offline access, playback countries, and much more. The claims definition schema that defines all the available claims alongside grouping and validation rules is hardcoded into Axinom Entitlement and published to Axinom Monetization. The Monetization service renders a UI according to the schema to ensure editors have a convenient way to manage, edit and allocate claims to subscription plans.
Orchestrating and Publishing Your SVOD Business Model
The Monetization solution in Mosaic also allows you to orchestrate the relationships between your subscription plans and entitlement entities. For instance, you can assign various content bundles to the different subscription plans you offer. For example, if end-users subscribe to a premium subscription, they are provided access to both movie and tv series bundles. On the other hand, a basic subscription gives them access to only one of the bundles. On top of that, you can assign multiple claims sets to a subscription plan, with one claim set that covers quality and another that covers access to content categories and even assign concurrent streaming limits. There are many ways to configure and combine claims sets and bundles to cover different business cases.
Once you’ve defined your SVOD model, Axinom Monetization allows you to publish subscription plans, bundles, and claim sets as events to a message bus. Any interested services can subscribe to these events and update their internal databases. Each payment plan is owned by a subscription plan, and when a subscription plan is published, all associated payment plans are also published with it. The relationship between subscription plans and bundles, as well as subscription plans and claim sets, are also published as part of the subscription plan.
The Monetization service will publish information primarily to Axinom Billing and Axinom Entitlement. The Axinom Billing service requires details on subscription plans and payment plans to be able to bill end-users. Axinom Entitlement will subscribe to information about subscription plans, bundles, and claim sets to appropriately issue DRM licenses.
The Next Step
Axinom Mosaic supports the rollout of both localized or global OTT platforms with extensible solutions to maximize current and future monetization prospects. Are you looking to get started? Schedule a meeting with an Axinom expert using the live chat below. Together, we can explore how Axinom Mosaic can support your unique use case.