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What is VOD Streaming? Meaning of Video On Demand Streaming



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The term “Video on Demand” implies moving away from conventional TV viewing, where people had to watch at set times with limited options.

So, what has changed in the last decade?

Well, these days, videos are everywhere. It can be viewed anywhere, anytime, and on any device.

This means that VOD streaming is far more convenient than traditional viewing.

In this blog, let’s understand Video on Demand.

what is VOD streaming, how does it differ from traditional television, what are their features, what are the benefits, etc.?

And, if you are a content owner, we have also listed the best video streaming platforms to start your streaming business.

Let’s start with the most important question.

It’s Time to Launch Your VOD Platform With VPlayed

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What is VOD Streaming?

VOD, short for “video on demand,” offers a new way to watch videos from a huge online library.

It’s about giving viewers a wide range of choices and letting them watch whenever they want.

With a traditional TV, you have to be physically in front of the television to consume the content.

However, VOD streaming allows you to watch content whenever you want. All you need is an Internet-enabled device, an app or a website for a streaming service.

VOD streaming is now everywhere, from funny videos on Facebook to commercials on popular Netflix series. It has become a big part of how we enjoy entertainment and find information online.

The rise of popular video streaming platforms has changed the nature of online content delivery, ushering in a more interactive future.

Recent research shows that people prefer to watch videos over other content such as emails, ads and blog posts. 

The videos are just so relatable and fun for the audience.

What is vod streaming

Adapting to the Crisis: The Role of VOD Streaming and Entertainment Releases

In today’s age, the Internet is not only much faster than it was a few decades ago but also more expensive as well.  

This shift has led to a demand for new forms of Internet-based entertainment, such as portable VOD solution, to provide greater freedom and variety.

Take, for example, in-flight entertainment on long-haul flights, where streaming VOD attracts a lot of passengers.

A large percentage of direct releases from Video on Demand services have emerged even amid the global healthcare crisis, with significant revenue streams built for filmmakers, content owners and distribution channels. 

If we remember the past — During the days of the emergency lockdowns, the broadcasting was limited to pre-recorded video streaming, primarily through transactional Video on Demand. 

This new approach offers an attractive option for customers, which had a paywall that allowed them to access one time purchases. 

Moreover, the adaptability of VOD streaming and its integration into entertainment releases has proven helpful in tough times, demonstrating the industry’s resilience and creativity.

Lately, three of the VOD streaming platforms have emerged as leaders in dominating the Premium Video On Demand industry.

The names include Netflix, Disney+ and Hulu, each offering customers a wide number of entertainment options for the end user.

But it is worth noting that these services operate under the umbrella of the network’s official partners and are designed for consumer-oriented interests. 

This centralized approach means that independent content creators have absolutely no control over their revenue share when presenting their creative content on these platforms.

vod streaming

Consider the leading VOD platform in upscaling monetization, where you will get good reachability and generate high levels of engagement – ​​VPlayed.

Aimed at the forefront, VPlayed enables you to uplift your position in the VOD market at a critical time, meeting today’s need for advanced content offerings.

These best VOD platforms facilitate the delivery of personalized video content delivered in a fully custom and white label VOD framework.

Secure platform ownership with robust Video on Demand hosting and access to 10+ revenue scaling models ensures a quick start to earning.

And that’s not all; the benefits are broader than that, making it necessary to examine how much value VPlayed brings to the table in terms of on demand video streaming.

Planning To Start a VOD Streaming Entertainment Business?

How Does VOD Streaming Work?

VOD streaming works by storing video files on servers accessible via the internet.

Whenever a user requests a specific video, the server sends the data to the user’s device in real time.

VOD allows for instant video playback without having to stick to a fixed, rigid schedule that doesn’t fit your plan.

But how are gigabytes of videos distributed and streamed across the world from the server?

The answer is Content delivery networks. CDNs optimize streaming by distributing data across multiple servers for efficient delivery.

So, in a nutshell, VOD streaming technology has fundamentally changed how we watch entertainment.

In the past, people often had to pay for services they didn’t really need, and this led to higher subscription costs.

Limited device options and content restrictions based on location made traditional media look less appealing compared to VOD streaming services.

But VOD streaming services are different.

Because they give access to approved content, letting users watch whatever they want, wherever they are, and whenever they want.

Unlike traditional media, VOD streaming platforms let users watch content even after it’s been broadcast live and that is perhaps the most interesting part of it.

With pre-recorded streams, users can watch content whenever it suits them best.

New technologies like HLS, RTMP, and cloud transcoding in on-demand streaming make the experience even better.

These improvements help content load faster and with fewer interruptions, making it more enjoyable for users.

This better, more refined experience is a big reason why more people are choosing VOD streaming platforms over conventional forms of entertainment nowadays.

How Does VOD Streaming Work

How Does VOD Streaming Differ From Live Streaming?

Understanding the difference between VOD and live streaming can be confusing, but there are some key distinctions.

Live streaming shows events as they happen, with viewers watching in real time.

Live streaming makes viewers feel like they’re part of the action, even if they’re not there in person. They can also share their thoughts with friends while watching.

VOD streaming, on the other hand, offers pre-recorded content that viewers can watch whenever they want.

They have the freedom to watch this content at their own pace, fitting it into their schedule. Plus, they can watch from any device with an internet connection.

Many live streaming platforms, especially religious streaming services, often reuse their content for on-demand streaming.

This is where a Live to VOD platform becomes essential. It allows businesses to seamlessly convert live-streamed events into on-demand videos, ensuring continued accessibility and monetization.

Once the event has gone live, these services make these videos available on their websites and monetize them later.

Besides, it also makes it easier for more people to watch, irrespective of their internet speed or device.

So, we have come a long way from the rigid schedules of conventional television.

Both VOD streaming and live streaming have changed the way we consume content. We now have more options, and the experience is all the more interactive.

Leading online video platforms often repurpose their content, releasing it within the video streaming website, contributing to the service’s growth.  

Top Benefits of Video on Demand (VOD) Streaming

Video-on-demand streaming offers several solid benefits to both users and streaming services over their conventional counterparts. 

what does vod mean in streaming

1. VOD is Convenient

VOD streaming gives you on-demand access to a vast content library. As we have already discussed, it lets viewers watch what they want, when they want, at their convenience.

They no longer have to adhere to a fixed schedule. 

2. VOD Offers Variety in Content

With a VOD streaming platform, users can explore a diverse spectrum of content genres, like movies, TV shows, documentaries, and educational videos — everything in one place.

It allows platform owners to cater to diverse audiences with varied tastes and interests. VOD always gives something for everyone to enjoy.

3. VOD Streaming is Accessible

Be it smartphones, tablets, smart TVs, or computers, content in VOD can be accessed across devices.

It means your viewers always have something to watch anytime, anywhere. It can be at their homes, on the go, or even when they’re traveling.

4. VOD Gives Personalized Watch Experiences

Many VOD streaming platforms have powerful AI/ML-based video recommendation algorithms.

They recommend content based on a viewer’s preferences, his/her viewing history, and ratings. You might have noticed the same on Netflix or even on YouTube. 

This personalized recommendation algorithm gives a refined user experience by surfacing relevant and engaging content.

On the one hand, it saves viewers time and effort searching for new videos to watch. 

On the other hand, streaming platforms get increased watch times, engaged viewers, and improved click rates using a personalized video recommendation algorithm. 

5. VOD Saves You Money

Contrary to television and other conventional entertainment options, VOD streaming often comes with flexible subscription-based models or pay-per-view options.

So, your users can access all the content they want only at a fraction of the cost of traditional cable or satellite TV. 

So, quite evidently, VOD offers users more value for money. It gives them better control over their entertainment spending.

6. VOD’s Ad-Free Experience

Most subscription-based video streaming services like Netflix offer an ad-free viewing experience. 

In other words, viewers have zero interruptions during the playback — they get a more immersive, satisfying experience than what is provided by television or cinema theatres. 

7. VOD Allows for Micro-targeting

Users generate a large amount of data with their activities on a VOD platform. And platform owners can leverage this user data and analytics to deliver targeted advertisements and promotions.

Having a better understanding of individual preferences, target demographics, and behavior allows them to tailor offerings to specific audience segments. 

8. VOD Has Better Scope for Content Analysis

VOD operators employ content analysis techniques, like metadata tagging and categorization algorithms, to organize and categorize videos.

In simple words, content analysis promotes efficient content discovery and searchability. From a user’s POV, it makes it easier for them to find relevant videos quickly and easily.

Let’s know about its key merits! 

Best Monetization Models for VOD Streaming

As a platform owner, it’s crucial for you to choose the right monetization model to reap the benefits of video-on-demand streaming. So, let’s discuss video monetization platforms and different models here.

vod stream

VOD Streaming with Monetization Models

A VOD streaming platform fully integrated with powerful monetization models allows people to put up online video content.

1. Subscription Video on Demand (SVOD)

SVOD gives users unlimited access to your content for a recurring fee. Subscriptions are typically paid monthly, semi-annually, or annually.

SVOD gives VOD providers a chance to lay a solid foundation for a steady, recurring, and predictable revenue stream.

Users get to watch their favorite content at a fixed cost, like Netflix’s monthly subscription.

2. Advertising Video on Demand (AVOD)

Ad-based models earn revenue from targeted advertising. In VOD, the service provider offers free or discounted access to content.

Users benefit from free or low-cost access to content, like YouTube’s ad-supported videos, while the platform earns revenue from advertisers based on viewership and engagement.

3. Transaction Video on Demand (Pay Per View)

TVOD allows users to rent or purchase individual titles for a one-time fee. It provides VOD streaming services with immediate revenue for the platform.

Users also benefit because they pay only for the content they consume.

For instance, you might have noticed that Amazon Prime Video often rents its videos for a one-time watch. This way, the platform earns revenue on a per-transaction basis.

4. Premium Video on Demand (PVOD)

This means giving users early access to newly released content for a premium price.

New releases and high-octane films are often high in demand, and PVOD capitalizes exactly on this exclusivity and demand.

This revenue model offers users access to highly anticipated titles before they become widely available, like Disney’s Mulan release on Disney+.

5. Catchup TV

Catchup TV services allow consumers to watch previously aired programs on-demand — as and when they need it.

Users can catch up on missed episodes or watch their favorite shows on their own schedule. This way, the platform maintains its viewers’ interest and augments its ad revenue as it offers convenient access to past content.

6. Coupons & Promotions

Whether you consider coupons as a monetization model or not, it’s totally up to you.

However, many platforms do offer coupons and promotions as a means to ramp up user engagement and promote subscription upgrades.

Loyal users benefit from discounts, free trials, or exclusive offers, while the platform gains from increased user acquisition and retention.

Why Launch Your VOD Business with VPlayed?

You may wish to discover an appropriate best video hosting services for your video material, now that you realize its importance as wireless internet video portals.

VPlayed is a fantastic choice for next-gen video streaming. 

vod online streaming

VPlayed is a one-of-its-kind VOD streaming platform in the industry. Here are some reasons why we think you will love VPlayed. 

1. Customize Your Platform Up To 100%

VPlayed is perhaps the world’s only fully customizable white label VOD streaming platform. Everything on the platform is customizable — from the dashboard to the video player to anything in the backend.

You can personalize it with your logos, colors, and images. It is the only VOD solution in the industry that lets you operate your streaming business fully without any third-party interference. 

2. Flexible Hosting Options

Choose how you want to host your platform—whether on the cloud or on-premises hosting. Enjoy increased flexibility and server security, giving you peace of mind.

3. Profitable Monetization

Unlock a variety of video monetization platform options with a professional streaming provider’s help.

From advertising-based (AVOD) to subscription-based (SVOD) and pay-per-view (TVOD), as well as other features like paywalls and advanced streaming methods, — you can maximize your platform’s revenue potential with VPlayed. 

4. 200+ Third-Party Integrations

Expand your platform’s capabilities by integrating 200+ leading third-party extensions and collaborating with other existing VOD services.

This opens up new opportunities to monetize your original content through partnerships.

5. VOD Analytics and Video Performance Tracking

VPlayed lets you extract valuable insights into your content’s performance with a live dashboard and analytics solutions.

Understand key metrics and dimensions to optimize your branded on-demand streaming platform.

6. Lifetime VOD Streaming Platform Ownership

Invest in these features once and enjoy constant revenue streams. Ensure sustainable business growth by owning the tools needed to thrive in the streaming video market.

7. Super Smooth Streaming with CDNs, HLS Player and Cloud Transcoding

Deliver seamless, buffer-free streaming across various devices using advanced technologies like top-tier content delivery networks (CDNs) and cutting-edge streaming protocols.

Provide multiple viewing options for your audience’s convenience.

8. Live Stream Recording

Capture live events easily and quickly. Store them directly in your VOD library.

Enhance search options and personalization by organizing your video content management system platform with meta tags and categorical filters.

9. Multi-User Management

Provide custom access controls and user rights within your organization and for different audience groups.

Utilize built-in protections to ensure your content is only accessible to the intended audience, enhancing security and privacy.

10. Robust DRM and Security Measures

Get a robust multi-DRM (Digital Rights Management) solution along with advanced security features such as AES encryption, dynamic watermarks, and geo-restrictions.

Safeguard your content against unauthorized access and piracy while also complying with copyright laws.

With these measures in place, you can protect your valuable assets and maintain the integrity of your platform. 

11. 100% Revenue Retention

Unlike other platforms that require profit or revenue sharing, VPlayed operates on a one-time license fee model.

This means you can retain 100% of the revenue generated through monetization efforts, maximizing your returns and financial independence with VPlayed.

Conclusion:

We are nearing the end of this blog. 

What are the key takeaways from the last few minutes of reading?

Let’s keep it simple. VOD streaming refers to broadcasting pre-recorded content to the viewers on demand, at their convenience. It offers a plethora of benefits, as we have seen above. 

Are VOD businesses profitable? Should you start a VOD business in 2025 and beyond?

VOD businesses are tremendously profitable, according to Neil Patel. 

Data says the global VOD market is set to expand at a CAGR of 15.2%, reaching a value of USD 160.5 billion by the year 2030.

And, if you’re a content owner or an enterprise-grade content creator, there’s no better time to build your own VOD platform, given the bullish market and growing customer base.

And, if you’re looking to build a dedicated VOD platform for your business — look no further than VPlayed. 

The reasons? We have already listed them above. 

One Platform to Transform Your Video Streaming Business

Frequently Asked Questions(FAQ):

1. What Is VOD Streaming?

VOD streaming refers to video content that is readily available on demand. Any video genre that includes TV shows, movies, or albums for viewers’ leisure is categorized under VOD. Examples of VOD services include Netflix, Disney+, and Hulu.

2. What Are The Benefits Of VOD Streaming?

The benefits of VOD streaming are many. This includes flexibility, convenience, and accessibility. VOD streaming allows viewers to watch video content at their own pace and on their own schedule, without needing to download the content onto their devices.

3. How does VOD Streaming Work?

Video-on-demand (VOD) streaming works by encoding video content into a digital format, uploading it to a server, and then delivering it to viewers over the Internet in real time. When a viewer requests to watch a video, the server sends the video data to the viewer’s device, which downloads and plays back the video content in segments.

4. Why Do You Need Video On Demand Streaming For Business?

The power of VOD streams translates curated content into consistent revenue and provides better monetization opportunities. From mid to large-scale businesses looking to improve their video services, VOD allows you to stream any number of videos with no geo-restrictions, offering a simple approach to publicize anytime.

5. What Is The Difference Between VOD And Live Streaming?

VOD (Video on Demand) and live streaming are two popular ways to watch videos online. The key difference is control: with VOD, you choose a show or movie from a library to watch whenever you want. Live streaming lets you connect to content in real-time, regardless of location, creating engagement with the broadcaster.

6. How Do I Monetize VOD Streaming?

There are various VOD streaming monetization models to choose from. This includes ad-supported on-demand videos (AVOD), subscription-based Video on Demand (SVOD), transactional-based (TVOD) Video on Demand, SSAI, third-party ad insertion, and combinations of these methods (Hybrid VOD). These models enable you to generate significant revenue from audiences of all sizes.

Monika Gopinath

Monika Gopinath is an accomplished digital marketer with over seven years of experience specializing in the VOD solution provider Industry. I am a passionate writer and avid blogger. I enjoy sharing insights on digital marketing, industry trends about VOD.



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