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Ooyala Report Compares Subscription and Ad-Based Video Services

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Subscription video-on-demand (SVOD) and ad-supported video-on-demand (AVOD) services are both taking off with viewers, but which brings the biggest monetary returns for content owners? The latest Ooyala Video Index report takes on that subject, finding deep differences in how viewers engage with content.

Where people view on-demand video varies greatly by the length of the program. Viewers overwhelmingly watch long-form content (programs 20 minutes or more in length) on their connected TVs, choosing longer videos 92 percent of the time. Tablet viewers show an even split between long-form and short-form (content under five minutes). Phone and PC viewers, on the other hand, show a strong preference for short-form video.

Since SVOD content is almost all long-form, it's almost always watched on a TV screen, while AVOD content varies more in length and in where it's viewed: Long-form AVOD content is largely watched on TVs, while short videos are watched on phones, computers, and tablets.

Ooyala says there's no clear return on investment (ROI) winner between SVOD and AVOD, but recommends that content owners take a hybrid approach and even include transactional video-on-demand (TVOD) to reach as many customers as possible.

The full Global Video Index Q1 2016 is available for free download (registration required). It also looks at programmatic advertising, the use of ad-blockers, and how quality of experience improves engagement.

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