Statista revealed, ‘’Further rapid growth is predicted to continue in the future of subscription business model, and by the year 2026, the revenue is expected to surpass 126 billion U.S. dollars.’’ Can you believe that this revenue growth is for video subscription platform services alone?
The subscription business model has been a hit due to the convenience it brings for users to stream VOD content. The subscription service period lets your user understand your USPs better. So when it comes to choosing the right business model, SVOD is the choice. There is a reason why SVOD has been a hit and you’ll see why.
In 2022, if you’re looking to scale your subscription revenue model, you need to do better than your current action. You need a plan that can help thrive your business for the next few years. Thus to help you successfully achieve the revenue and growth numbers in mind, this blog covers the top 7 ways to create revenue-driven subscription services.
What Do You Mean By Subscription Revenue Model?
A subscription business model allows users to pay a fee for a time period in return to access an unlimited library of VOD platform content. Senal News stated, ‘’Global SVOD subscriptions will increase by 485 million between 2021 and 2027 to reach 1.69 billion.’’
These time periods can vary based on the user’s interest, such as monthly, weekly or even yearly. Users can choose their subscription plans accordingly. Business owners here can take advantage by offering better value for the money paid.
This investment is proven to be a popular choice because users have the ability to continue or discontinue services accordingly. So this gives users the freedom to do return or access VOD content when required.
7 Ways To Create A Lucrative Subscription Business Model
1. Accessible anywhere
The number one factor you need to keep in mind here is you have to make your subscription model easily accessible to your user. They could use your subscription model on their smartphones or any other devices at their convenience. When users have this advantage, they will retain your brand for long.
2. Offer Free-trial
Free trials let your doubtful or confused users to have a sneak peek into what your subscription business model has to offer. A good week of a free trial can help your users decide whether your subscription services are worth the investment. Thus ensure that you’re able to exhibit this better as you have one chance to create a confident impression.
3. Offers Exclusive Content
Now that your user has invested in your subscription video, it is always good to make them feel appreciated. Thus the best way to exhibit this is by sharing exclusive content. This could be anything, such as the latest movie or access to premium content. Your users will appreciate the gesture and will stay longer to receive more of this benefit.
4. Offer Personalized solutions
Another great way to sell your subscription revenue model better is to offer more services rather than just offering VOD content. Make each service personalized by offering subtitles options, audio quality choices, audio language options, etc. Users will always prefer brands that go out of their way to deliver exceptional services for each of them.
5. Conduct regular updates
The best way to retain your user’s attention is to constantly update your platform. Whenever your add new features, keep your users informed. Put pop-ups to guide your users on new sections in your platform. Constantly work on offering your users the best to increase the subscriber count with time.
6. Set the right pricing
Pricing matters, especially when dealing with subscription services. It is important to choose the right price as it should suit your target audience’s budget and needs. Before you set a price, have a trial going on to witness what price range will capture more attention of your users. Based on this, you can even decide your expected profits and revenue numbers accordingly.
7. Work with analytics
Analytics can help you make better decisions. The data can help you understand what works well with your users. For instance, if you see more users investing in your current subscription business model, you can take measures accordingly to enhance the same. Use 360-degree analytics, especially when you wish to upscale this type of business model.
When you make use of subscription video-on-demand model well, chances are you can expect good revenue growth in a shorter time span. Statista revealed, ‘’The SVOD streaming section is expected to have an increase in the user count up to 1,486.8m users by 2026.’’
SVOD has always been a user favourite due to the opportunity to access more valuable content at a good price. This type of business model has been a preferred choice also because, from the business owner’s point of view, driving growth and revenue becomes easier.
Now that you have the essential details, it’s time to create a platform to conduct the same process. Having a platform can help you exercise subscription service delivery better. But it is always to invest in with the experts in the field.
Since you’re starting, we suggest investing in reliable video monetization platform providers as they can help offer valuable features and other benefits to enhance your subscription models better. They can even help you set up your subscription model quicker.
So, tell us, which tip will you get started with first?