SVOD - Subscription Video on Demand
Subscription Video on Demand business model provides access to a library of video content to users at a fixed monthly (or yearly price)
Subscription Video on Demand model provides a large bundle of content to users, to watch the content at their leisure. The range of content and the convenience of the interface are the main drivers that build the popularity of a Subscription video on demand model. SVOD model is increasingly becoming the most popular business model in OTT, and is being adopted by both education content and entertainment content providers.
Netflix is an SVOD platform (and indeed Netflix pioneered the subscription business model when they introduced it for their DVD business way back in 2001). SVOD model is popular largely because it ensures a recurring revenue stream for content providers, and because the large library of content is popular with viewers who no longer rely on television for entertainment.
Netflix is currently spending $7-8 billion in creating and acquiring original content. In the US, Disney is also about to launch their own streaming service. Disney is already the most profitable entertainment company in the world, owing both to their IP in successful film franchises, and also because they own the biggest sports channel - ESPN in the world. In India Disney owns Hotstar, which is one of the most popular SVOD platforms in the country.