Guide to setting up your Subscription VOD Plans

How to price subscription VOD plans? – It is the most asked question that we get from our customers. The method to price video content on a subscription basis is tough because it goes against the traditional approach to pricing a product. We always have been following the cost + pricing method. This includes the material, labor and overhead costs for a product. With cost + pricing, we add a markup percentage to reach the ideal price of the product or service you are offering.

The most amazing fact of the subscription model is that it creates forever transactions of long-term recurring revenue rather than immediate one-time transactions for products and services.

Scrutinizing our consumers, we have discovered that the average cost of a monthly VOD subscription is between $7.99 – $9.99 a month. However, each business is different and that’s why you need to think this through to ensure this price is right for your business as well as end-users.

Variables for setting up your subscription VOD plans

Revenue objective

In this technologically and economically advanced world, how much does your video business make monthly? Always ensure your goal includes overhead costs.

Existing users

How big is your existing audience size? How many followers do you have on social media? How many emails do you have on your list? For setting up your subscription VOD plans, either use the total number of followers from each platform or the main platform your business is active on.

Your existing audience is the ones you are currently not monetizing and it is the main pond you are going to try to fish in. They are your biggest supporters, the ones who already know your credibility in your field.

Conversion rates 

It is nothing but the percentage of people who will come to your website and buy whatever you are selling. It differs from business to business, content type to content type, and even social media platform to social media platform. But, on an average 2 to 5 % conversion can be picked to set the price.

Paying subscribers for your VOD model

This variable is just the number of subscribers you would have based on the assumed conversion rate percentage of the existing followers you have.

Industry and Genre

The nature of your content will impact how you price your content. The best place to begin here is doing your basic market research to observe what subscription video services similar to the one you’re offering charge their consumers. If you are going to charge higher than your biggest direct competitor, you have to make sure your offerings are well worth the difference and that the additional value is reflecting your brand.

The next thing to consider is the content type and genre. We have observed that each type of content has an industry price average that you should consider and probably standby unless you offer content that is more valuable and worth the difference in cost. One thing to remember is that you don’t need to price high, rather you need to price right.


Niche content that is specific and innovative is valued higher because it’s ideal for the audience, while small and limited, is likely very focused and dedicated to this niche, and is typically willing to pay that little extra.

Discounted Annual Subscription

It is always a great method to tempt people to sign up and get paid for an entire year upfront. The most effective discount with an annual subscription is 20 to 25% less than the regular monthly subscription charge. If you provide a discounted annual subscription, ensure you make the savings directly in numbers.


Pricing your video is always an under-progress task. The market will constantly change and as your business grows, your audience and content will also grow. So, try being flexible and test your pricing and marketing. If you are a video content producer and need a platform to stream your VOD content online, consider choosing Muvi. We are an all-in-one VOD platform provider and can help you launch your own OTT streaming and video streaming platforms. Take a free trial to know how it can provide a flawless streaming experience and help grow your audience base.

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