Navigating the World of Streaming: Understanding FAST, AVOD, SVOD and TVOD

The world of video streaming continues to evolve rapidly, with new service types emerging to meet growing consumer demand.

Understanding the key differences between models like FAST, AVOD, SVOD and TVOD is essential for creators, advertisers and viewers to navigate this complex landscape.

The explosive growth of video streaming

Video streaming refers to delivering video content over the internet to be instantly viewed on demand. This technology has disrupted traditional pay TV and become a dominant force in the media industry. According to Nielsen’s The Gauge, nearly 40% of US television consumption is now streaming-based as of fall 2023, with cable at 30% and traditional broadcast at 23%.

Meanwhile, Forbes notes there is close to 1.8 billion subscriptions to the various online streaming services, with 83% of US households subscribed to at least one service. 

Driving much of this growth is the rise of ad-supported and hybrid streaming models. With subscription fatigue setting in among consumers, platforms are diversifying monetization strategies beyond reliance on subscription video on demand (SVOD) alone. 

Free Ad-Supported Streaming TV (FAST)

FAST refers to free ad-supported streaming TV services that offer linear, scheduled programming like cable TV but without fees or contracts. FAST platforms provide continuous curated live streaming channels with ad breaks.

According to market research from Statista, the global FAST market will reach $9 billion in 2024 as services like Pluto TV, Tubi and The Roku Channel gain viewers. For cost-conscious consumers seeking a cable-like viewing experience, FAST provides a compelling alternative.

Advertising-Based Video On Demand (AVOD)

Meanwhile, AVOD platforms utilize a different on-demand model while still earning revenue from ads. Whereas FAST channels curate third-party content, AVOD services host proprietary libraries of studio-licensed movies and shows.

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Leading platforms like Tubi, The Roku Channel and IMDb TV are free to use but feature commercials. Other players like Peacock and Paramount+ offer hybrid paid tiers with limited ads or the option to upgrade to an ad-free experience. Global AVOD revenue is forecast to hit $63 billion by 2027, making it one of the fastest-growing streaming segments.

Subscription Video On Demand (SVOD)

SVOD services like Netflix, Disney+, HBO Max and Prime Video allow subscribers to access ad-free premium content libraries, including originals and exclusives, for monthly fees generally ranging from $5 to $15.

Despite rising competition, Digital TV Research projects there will be 1.5 billion global SVOD subscriptions by 2026, demonstrating continued dominance. However, services like Netflix and Disney+ are exploring incorporating ads to boost revenue as saturation point looms.

Transactional Video On Demand (TVOD)

Also known as pay-per-view or transactional on-demand, TVOD allows consumers to pay one-time fees to instantly unlock titles, bypassing subscription or ad obligations.

TVOD includes models like DTR (download-to-rent), PPV (pay-per-view) and EST (electronic-sell-through). Amazon Prime Video, Apple TV, Vudu and other transactional stores effectively monetize new film releases and live sports via TVOD. 

Hybrid Video On Demand (HVOD)

As consumer preferences continue fragmenting, services are embracing hybrid models that offer greater choice. HVOD combines elements of AVOD, SVOD and TVOD into one platform.

For example, Peacock offers an ad-supported free tier, a discounted Premium subscription, and pay-per-view early movie premieres. Pluto TV integrates an AVOD linear experience with SVOD channels and titles available for purchase. HVOD provides exposure to more business models and content varieties in one interface.

Key differences between streaming models

The key streaming models have distinct attributes:

• FAST provides free linear viewing supported by ads.
• AVOD offers on-demand libraries, either ad-supported or via hybrid plans.
• SVOD gives subscribers premium ad-free content.
• TVOD enables pay-per-view transactions for timely access.
• HVOD merges these models into multifaceted services.

Each format has unique advantages and limitations. As the streaming wars intensify, understanding nuances across delivery, revenue, content sourcing and availability will be critical for platforms seeking loyal viewers.

For advertisers, different models offer unique marketing opportunities. For consumers, gaining literacy around the diversity of streaming choices allows for services that truly align with budgets and preferences.