When you’re negotiating with a regional streaming platform, you’re not just selling a film, you’re entering a revenue ecosystem. And not all platforms work the same. Understanding the difference between AVOD (ad-supported video on demand), SVOD (subscription video on demand), and hybrid models is critical if you want to maximize your earnings, your exposure, or (ideally) both.
If you walk into the room thinking one-size-fits-all, you could be leaving money (or viewership) on the table. So here’s how the business models break down, and what they mean for indie filmmakers like you.
AVOD is Free to Watch, Ad-Fueled Payouts
Ad-supported streaming services like Tubi, Plex, Shahid (free tier), WeTV, and iQIYI (freemium) offer content at no cost to users. Instead, they make their money through ads. The more people watch, the more ads are served, and the more revenue is generated.
| Why it’s great for indies | AVOD platforms are always hungry for content. Because they don’t rely on big subscriber spend, they need a high volume of watchable material to keep viewers engaged. Indie films are cost-effective for them to license, and they often get better visibility than on SVOD giants. |
| How you get paid | Typically, revenue is based on a rev-share model. You earn money based on watch time, impressions (views), and geography. Some platforms pay better in certain regions (e.g. U.S. and Western Europe tend to bring in more ad dollars than Southeast Asia). |
| Best for | Films with mass appeal, genre hooks, shorter runtimes, or strong titles that perform well in search and recommendations. |
SVOD Has Paywall Prestige and Flat Fees
SVOD platforms like BritBox, ZEE5 (premium tier), Shahid VIP, and Showmax generate revenue from monthly or annual subscriptions. Their focus is on quality over quantity, and that often means fewer acquisitions, but sometimes higher license fees.
| Why it’s great for indies | SVOD platforms tend to value exclusivity and curation. If your film aligns with their brand and audience, you can secure a flat licensing fee, sometimes even before your film is released. Some services also do co-productions and may help with marketing. |
| How you get paid | Usually through a flat-fee licensing deal, either exclusive or non-exclusive. The better your buzz (festivals, reviews, star cast, social following), the higher the fee. There’s no backend or residuals unless negotiated separately. |
| Best for | Prestige dramas, regional-language films, festival winners, and content that matches a platform’s taste profile. |
Hybrid Models Are the Best (and Trickiest) of Both Worlds
Platforms like iQIYI, Viu, and Tencent Video often use a hybrid model, offering both free, ad-supported content and a premium, subscription-only tier. Your film might appear on one or both, depending on the deal.
| Why it’s great for indies | Hybrid platforms offer reach and revenue. You can earn from ad views on the free tier, while also benefiting from a licensing fee or bonus exposure on the premium side. These platforms often have larger user bases because they cater to a broader socioeconomic spectrum. |
| How you get paid | This varies widely. Some platforms offer tiered licensing (lower upfront with backend rev-share), while others might pay more for premiere positioning. It’s more complex, but also more flexible, and ideal for filmmakers who want a larger footprint. |
| Best for | Films that can appeal across demographics or that can be sliced into both free and premium experiences (e.g. offer the full film on VIP, but extras or shorter edits on AVOD). |
What’s the Right Fit for Your Film?
There’s no one perfect model. It depends on your goals.
- Want maximum exposure and long-tail earnings? Go AVOD.
- Want a solid, upfront payday and platform prestige? Go SVOD.
- Want both reach and revenue over time? Negotiate hybrid.
Smart filmmakers often mix and match, licensing their film to one platform in a specific region (e.g. ZEE5 in India), then to a different model elsewhere (e.g. Tubi in the U.S.). This way, you diversify income and audience reach without overcommitting to one channel.
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