Glossary · Monetization

What is a subscription tier?

A subscription tier is one of the plans a streaming service offers at a given price. Tiers differ in what the subscriber gets, such as video quality, simultaneous streams, downloads, the catalog included or whether ads are shown.

How subscription tiers work

Each tier is a set of entitlements with a price and a billing period. When a subscriber presses play, the service checks their tier to decide whether the title is included, which quality to serve, whether ads run and how many devices may stream at once.

Subscribers can move between tiers. An upgrade usually takes effect immediately; a downgrade at the end of the current period.

What tiers usually differ by

  • Advertising: with ads or ad-free
  • Video quality: HD, Full HD or 4K
  • Simultaneous streams and registered devices
  • Offline downloads
  • Catalog: a base library, or the library plus premium or live content
  • Billing period: monthly, quarterly or yearly at a discount

How many tiers to offer

Two or three is enough for most services. Each tier should have one clear reason to choose it; if two tiers are hard to tell apart, viewers pick the cheaper one or leave the page.

Price tiers per market rather than converting one price into every currency, and add an annual option to lower churn among committed subscribers.

Last reviewed

FAQ

Subscription tier, answered.

More definitions in the streaming glossary.

Planning a streaming service?
What is the difference between a tier and a plan?

The words are used interchangeably. Some services use tier for the level of service and plan for a tier at a particular billing period, such as the premium tier on a yearly plan.

Should the cheapest tier include ads?

It is a common choice, because advertising makes up for the lower price. It works when the service has enough viewing hours to sell and a way to fill the ad breaks.

Should a new service launch with several tiers?

One or two is a sound start. Add a tier when you see a clear group that the existing plans do not fit, for example families who need more simultaneous streams.

Ready to own the screen?

Tell us what you are launching. We will walk through the platform and map the path to go-live around your catalog, markets and revenue model.