As traditional theatrical audiences shrink due to COVID-19 and DVD/Blu-ray sales decline, independent filmmakers are navigating a shifting landscape where streaming licensing deals are less lucrative. However, amidst this transformation, a new revenue model is gaining traction: AVOD (advertising-supported video on demand).
"AVOD is one of the fastest-growing categories for all films," notes Brian Newman from Sub-Genre Media, emphasizing its appeal amid subscription fatigue among consumers. Director Eric Schultz (Minor Premise) echoes this sentiment, highlighting AVOD as a viable alternative for films that don't secure major SVOD deals.
Nick Savva, General Manager at Giant Pictures, underscores AVOD's benefits, citing its evolution from a niche option to a crucial revenue stream alongside SVOD. This shift allows films to reach broader audiences without the exclusivity demands of major platforms like Netflix or Amazon.
What Is AVOD?
AVOD platforms operate in two formats: curated services where viewers select content interrupted by ads, and FAST (free ad-supported streaming TV) channels offering live content akin to traditional television. These platforms cater to viewers seeking free or low-cost alternatives to subscription services.
"AVOD's appeal lies in its accessibility," says producer Noah Lang (The Climb), emphasizing its popularity on platforms like Roku and Tubi. John Kim of Deep C Digital adds that AVOD's rise parallels consumer preferences for free, ad-supported content, challenging traditional paywall models.
AVOD Growth and Opportunities
Research indicates a significant rise in AVOD usage, with consumers increasingly shifting from cable subscriptions to streaming services. Platforms like Roku and Tubi have capitalized on this trend, offering extensive libraries that appeal to diverse demographics, including niche genres and underrepresented audiences.
Sana Soni, director of sales at 1091, highlights AVOD's role in diversifying content consumption, noting its success with genres like paranormal, sci-fi, and LGBTQ-focused documentaries. This diversity underscores AVOD's potential to serve niche markets overlooked by mainstream platforms.
AVOD Revenues and Business Models
AVOD's revenue model, typically based on ad impressions, offers a sustainable income stream for filmmakers. Will Battersby (A Good Marriage) and Giorgio Angelini (My Friend Dahmer) attest to AVOD's long-tail revenue potential, citing consistent earnings even for lower-budget productions.
"AVOD revenue often surpasses transactional VOD fees in the long run," explains Battersby, highlighting its advantage for films with enduring viewer interest. This revenue-sharing model, where platforms retain a percentage of ad revenue, incentivizes filmmakers and distributors to maximize audience reach.
The Future of AVOD
As AVOD platforms mature, they're investing in original content akin to SVOD giants like Netflix, signaling a shift towards bespoke programming. Roku's acquisition of Quibi's content and Tubi's exclusive series demonstrate AVOD's evolution beyond curated libraries to include premium originals.
Brian Stevenson of Sheena Mae Stories predicts continued growth in AVOD, driven by consumer demand for diverse, inclusive programming. Platforms are also experimenting with curated channels and marketing initiatives to enhance discoverability, mimicking traditional TV networks' programming strategies.
Conclusion
Despite concerns over ad interruptions, AVOD's democratizing effect on film distribution is undeniable. Filmmakers can leverage AVOD's reach and revenue potential to complement traditional distribution channels, fostering sustainable careers beyond traditional studio models.
As AVOD continues to evolve, its role in the film industry will likely expand, offering filmmakers new avenues to connect with global audiences. Embracing AVOD could be pivotal for independent filmmakers looking to navigate an increasingly competitive and dynamic digital marketplace.
By Sal Framondi,
CEO/Founder, OPPRIME.tv
Producer, Black Filmmakers Matter
Distribution plays a crucial role in the success of independent filmmakers, and OPPRIME.tv offers an excellent opportunity for these creators to present their work to a global audience. By collaborating with OPPRIME.tv, independent filmmakers gain access to a specialized distribution platform that focuses on promoting and exposing their films. This collaboration enables filmmakers to reach a broader audience, generate substantial revenue, establish important industry connections, build a solid reputation, and contribute to social and cultural discussions. OPPRIME.tv empowers independent filmmakers by giving them the tools to share their unique stories, spark meaningful conversations, and make a lasting impact on the world of filmmaking. Partnering with OPPRIME.tv helps independent filmmakers overcome distribution challenges and seize growth and success opportunities in the industry.
Video-on-Demand: www.opprime.tv
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