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Landscape of Streaming TV Service Models OTT

An overview of the different services models for OTT marketing.

Ad-Supported Video on Demand (AVOD): Imagine enjoying your favorite shows and movies online at no cost – that's AVOD for you. Platforms like YouTube, Tubi, and Crackle offer a treasure trove of free content, monetized through ads that viewers watch during their streaming experience.

Subscription Video on Demand (SVOD): For those who prefer their binge-watching sessions uninterrupted by commercials, SVOD services like Netflix, Amazon Prime, and Disney+ provide an ad-free viewing pleasure for a monthly subscription fee. Hulu and Peacock stand out by offering a choice – pay less and watch with ads, or upgrade for an ad-free experience.

Transaction-Based Video on Demand (TVOD): TVOD services, such as iTunes and Vudu, cater to viewers looking for a pay-per-view experience, allowing them to rent or buy individual movies or episodes.

Multichannel Video Programming Distributor (MVPD): MVPDs like Comcast or DISH represent the traditional cable TV model, offering a broad range of channels under a single subscription.

Virtual Multichannel Video Programming Distributor (vMVPD): vMVPDs, including Sling TV and YouTubeTV, modernize the traditional cable package by delivering content over the internet, offering a flexible and often more affordable alternative to conventional cable services.

Video On Demand (VOD): VOD services provide a library of movies and shows available to watch at any time, a feature offered by both streaming platforms and traditional cable providers.

Key Terms in OTT Advertising

  • Ad Pod: A digital equivalent of a commercial break, ad pods group multiple ads together, mimicking traditional TV advertising within streaming content.

  • Autoplay Video Ad: These ads automatically play before a stream starts, capturing viewers' attention right off the bat.

  • Full-Episode Player (FEP): FEPs offer long-form content online or via apps, creating a premium space for advertisers to reach audiences outside traditional TV.

  • In-Stream Video Ad: Embedded before, during, or after streaming content, these ads are designed to be part of the viewing flow, with some allowing viewers the option to skip after a few seconds.

  • Interactive Video: A step beyond traditional ads, interactive videos engage viewers with actionable elements like polls, links, or forms, enhancing viewer engagement.

Understanding Addressability in Streaming

  • Addressable TV and Addressability refer to the precision targeting of ads to specific viewer segments or devices, leveraging detailed analytics to tailor messaging to individual preferences and behaviors.

Target audience segment young family
Target audience segment young family

The Role of Connected Devices

  • Connected TV (CTV) and Smart TV are at the forefront of the streaming revolution, with CTVs using external devices and Smart TVs featuring built-in streaming capabilities, both offering access to a wide array of streaming services.

In the competitive streaming market, OTT platforms strive to stand out by enhancing content quality and user experience, with professional services playing a crucial role in content creation and platform optimization. Viewer engagement and OTT television ratings become key metrics in this landscape, guiding content strategy and platform improvements to meet evolving viewer demands.


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