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Tiered Entitlement Subscription Explained: Use cases

by

Johan Alfvén

Head of Product Management

January 19, 2024

Best practices

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There are numerous ways OTT services can twist and turn their pricing models and content access to generate revenue, and the tiered entitlement approach allows them to do just that. 

To enable it, understanding the diverse viewer preferences and what motivates them to invest more or opt for lower-cost options is key. Ensure that your pricing models are informed by careful customer research so that each tier not only reflects the value of the content offered but also resonates with the specific needs and expectations of different audience segments.

Via the Tiered entitlement approach, video streaming services can provide different levels of content access or additional features based on the subscription tier, catering to diverse viewer preferences and budgets, and hence creating personalized experiences. In other words, Tiered subscriptions add layers of customization and choice for both the provider and the users, moving beyond the one(or 3)-plan-fits-all approach of traditional subscriptions. 

Use Case 1: The Sports Enthusiast's Dream

Consider an OTT platform specializing in live-streaming high-energy sports. To enhance the viewing experience, the service avoids ad interruptions, crucial for maintaining the thrill of live sports. Instead, it adopts a tiered subscription model. The basic tier offers standard live sports coverage. Higher tiers provide added value with features like ad-free streaming, access to exclusive international events, or even interactive content like player stats and instant replays. This approach not only keeps sports enthusiasts deeply engaged but also respects their desire for uninterrupted live action, thereby boosting viewer satisfaction and loyalty.

Use Case 2: Family-Friendly Flexibility

For a family-oriented service, tiered subscriptions can offer a spectrum of content suitable for all ages. The base tier might include general family content, with subsequent tiers adding more specific categories like children’s programming, educational content, or parent-focused shows and documentaries. This approach ensures that every family member finds something valuable, encouraging household-wide subscriptions.

Use Case 3: The Cinephile's Collection

For movie enthusiasts, an OTT platform could offer tiers based on genres or exclusivity. The basic tier might provide a wide selection of popular movies, while premium tiers could grant access to indie films, international cinema, or early releases. This model appeals to both casual movie-watchers and dedicated cinephiles.

Use Case 4: Event-Based Special Access

Special events like concerts, award shows, or exclusive interviews can be segmented into a special tier. Regular subscribers get the usual content, but event-based tiers offer one-time or limited access to these unique experiences, creating a sense of exclusivity and urgency.

Conclusion

Tiered subscriptions in OTT services present a vast playground for creativity and personalization. By carefully crafting these tiers to match the diverse preferences of their audience, OTT providers can unlock new levels of user satisfaction and revenue potential. The future of streaming is not just about content; it's about delivering it in a way that resonates with every individual viewer.

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