Learn More About VOD Platform
This blog post is a brief discussion on what is VOD? What does VOD stand for? VOD definition, types of VOD ? How does VOD work? VOD meaning and which VOD Monetization model is the best for your business? .,
Checking into the statistics of VOD, we found that in the global Video on Demand Market, the revenue size was standing at USD 146.6 billion in 2023 and will hit up to USD 270.3 billion by 2028, at a CAGR of 13.0%.
This defines VOD’s success and future !
The fall of cable TV viewing post covid and the rise of content creators and Smart TV apps brought in new innovations and improvements in OTT content viewing.
Whether it is smart TVs, mobile devices or any gadgets, VOD platforms are now constructing a future of the broadcasting industry with importance to features and a report by Conviva shows that video on demand viewing has grown by 155% year-over-year with an average of 17.1 minutes per session.
A recent survey by Hubspot also confirms people prefer video over other forms of content. This includes infographics, blog posts, emails, etc.
Cisco Systems predicts that 70% of people will have mobile devices by the end of 2025 and hence the demand for 4K/UHD video content will double.
We are experiencing the difference now!
These facts clearly show that video on demand benefits are huge, if you press the right buttons with clear understanding of VOD, so now let’s get into the knowledge gaining part,
This article discusses the VOD platform model in-depth and how businesses can benefit from it.
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What is VOD?
VOD is a digital media distribution system in which viewers can watch video content from anywhere, anytime through an app without limitations like timed scheduled broadcast or live streaming.
Video content on the platform includes sports events, television shows, digital films, and musical concerts.
Unlike traditional tv shows or live streaming, with VOD comes a flexibility where viewers can control their viewing experience by pausing, playing, fast-forwarding, rewinding, and re-watching shows as many times as they like.
Making VOD a convenient and popular choice for consuming video content on OTT apps and OTT platforms.
Content creators, media business owners, film producers sell their VOD video content to OTT platforms and they monetize them through pay-per-view or subscription models (monthly, half-yearly, and annual).
Understanding VOD Streaming
VOD stands for “Video on Demand” & VOD streaming is a OTT service which follows a technology where the uploaded video content is transferred to viewers on their smart tv or mobile apps on demand through the internet.
What does On-demand means, On-demand is when a viewer chooses to watch a specific video content from an OTT platform content library for a fee.
VOD services are accessible through cable, telephone providers, and broadband to OTT platform On-demand viewers.
What are the advantages of video on demand?
- Watch Anytime – Viewers can play content whenever they prefer. Unlike traditional TV schedules, VOD is not tied to a fixed timetable.
- Choose Your Favorites – Viewers have the freedom to pick and choose what they want to watch, in comparison to traditional pre-scheduled viewing.
- Control Your Viewing – Viewers can play, stop, rewind, fast forward, and fully control how they watch content. This ensures they don’t miss anything important.
How Does Video On Demand Work?
Video On Demand works by storing and streaming recorded digital video content from a central server to viewers who select the video content title in their OTT application for a paid VOD subscription fee.
The streaming application holds functionalities to pause, play, rewind and to fast-forward.
To understand the VOD meaning more technically, here’s how it works:
- The video is first converted into a digital format and stored on a video server.
- It is then compressed and sent to the viewer through broadband or cable.
- Once it reaches the viewer, the video is decoded and accessed via a set-top box and stored on a video server in the viewer’s device.
- The viewer can then watch the video and control how they play it, such as starting, pausing, or stopping it whenever they like.
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👉Recommended Reading: How To Build A Billion-Dollar Video On Demand (VOD) Website?
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Different Types of VOD Models to Choose
The success of a VOD business depends on the content strategy and the monetization model you choose.The common VOD models include subscriptions, pay-per-view and advertisements.
With the right way to generate revenue, you can reach your financial goals while also building and promoting your brand in the best way possible.
There are several ways to turn your video content into profitable opportunities.
Here are the top three video monetization models to earn revenue from your offerings:
1. TVOD or Transactional VOD
What is TVOD? Transactional video on demand is based on a pay-per-view monetization model and best suited for the most popular videos with small video libraries.
Here, the viewers purchase or go for digital renting for the specific content they want to watch.
The TVOD business model is further divided into two categories – EST (Electronic Sell Through), where the viewers get permanent access to the content on a one-time payment, and DTR (Download to Rent).
In which they’ll have to pay a smaller fee to access the content for a scheduled period of time.
Examples of TVOD monetization models are Google Play, iTunes, etc.
2. SVOD or Subscription VOD
The subscription video on demand is the most popular monetization model for varied content creators in order to broadcast with large video libraries.
Here, the viewers subscribe to a video service for a certain period of time (weekly, monthly, yearly) to access its content.
Once the viewers pay the SVOD platform, they are eligible to surf unlimited content on their online video library.
The subscription plans auto-renewal and also cancel at any time by the viewers. Examples of SVOD vs AVOD are Netflix, Hulu, Amazon Prime, etc.
3. AVOD or Advertising VOD
What is AVOD? The advertising video on demand is another popular monetization model that uses ads for earning revenues.
Here, the viewers stream the content for free but stressed to watch ads as well.
The VOD ads are classified into three categories: – Pre-roll (plays at the beginning), Mid-roll (plays in the middle), and also Post-roll (plays at the end).
The AVOD business model generates a good amount of revenue that gives a large viewer base. Examples of AVOD monetization models are YouTube, Daily Motion, etc.
Are You Ready To Build Your Video on Demand Platform With Top Customized Features?
What are the Opportunities in Video On Demand(VOD) ?
The dynamic change and capabilities VOD presents itself has vast practical implications, the global reach and demand for online on-demand content have enhanced the business sectors.
The major ones are entertainment and online education. Entertainment platforms like Netflix , Amazon Prime, Google Youtube, The Walt Disney Company , Apple , Warner Bros Discovery , Comcast Corporation , Paramount Global , Sony, Fox Corporation , Lionsgate , Indieflix , Reliance Jio are reaping the benefits.
When it comes to E-learning, the flexibility to pause, play and rewind the educational content makes it a primary source for students to access educational content from remote locations, surpassing the geographical limitations.
Who are the Global clients of the VoD market?
The VOD market is expanding in all sectors and the major areas are the Government Agencies, Resellers and Distributors, Research Organizations, educational institutions, corporate media businesses, Entertainment businesses and the list goes on so it’s smart to invest in all these business sectors to make your VOD business fruitful.
Why Should Your Business Need VOD?
VOD streaming platforms fill the gap between forced viewing by flexible viewing experience, modern busy lifestyle calls for a system that is equally flexible to suit the viewers’ needs.
Video on demand (VOD) services provide enhanced accessibility to audiences and also enough time for creators to perfect their videos for release.
What is a VOD? Video on demand, refers to any content distribution platform that allows viewers to choose when, where, and how they watch media.
The modern busy lifestyle calls for a system that is equally flexible to suit the viewers’ needs.
Video on demand services provides enhanced accessibility to audiences and also enough time for creators to perfect their videos for release.
Take a look at some of the main reasons why businesses should use VOD for their growth.
● Convenience
VOD allows customers to consume the content as per their wish. There are no restrictions on time and place, and the viewers can watch as many videos as they want.
Unlike a traditional broadcasting service, VOD app services are not limited to geographical locations and viewers can stream content from worldwide.
Furthermore, VOD businesses do not have any contractual obligation and also provide customers the flexibility to discontinue the service at any moment.
● Online Community and Passion
With VOD, creators can build communities around their videos and the industry they are passionate about.
This creates better engagement and a sense of belongingness among the viewers. And if the content is good, it leads to increased business success and also earnings.
● Source of passive income
Create a video subscription platform, provide a regular income to the service provider, so they don’t need to focus on picking up customers each day.
One can easily increase the customer base with the reference of their online community.
This allows the creators to invest more of their time and also resources into creating quality content and positioning themselves as an authority in their industry.
As a result, customers are more willing to buy from them at a premium price.
● Control over your variety of content
By creating the best online video platforms, creators have complete control over their content. They can create whatever they like for whoever they want.
One can create videos on the go and also share them with the world while being their most authentic selves.
● ● Monetize your current VOD market
If you have a large social media following, you can direct it to your existing online space and turn your followers into viewers.
With an increase in the number of viewers, the popularity and also revenue of the business will also increase.
● Unlimited Customers & Accessibility
Creating a unified platform is much better, as it is accessible through a variety of devices.
Audiences can log in to their account from any laptop/computer or mobile phone with a single click and also start streaming their favorite videos.
VOD inclined services are also capable of providing content to unlimited customers. Thus, maximizing their revenue potential.
● Ad-Free Entertainment
Nothing irritates viewers more than ads during video streaming. In fact, many viewers are ready to buy premium memberships to surf ad-free content online.
VOD services help businesses deliver a smooth ad-free streaming experience that helps to build a loyal audience base.
How to Get Started With VOD Streaming?
Creating your own VOD platform is one of the best decisions that you can take to upscale your business.
It is not only useful for providing VOD services but also facilitates business communication, education, training, and much more.
It is not only useful for providing entertainment services but also facilitates business communication, education, training, and much more.
Indeed, we can definitely say that VOD is an opportunistic niche with a huge market.
And, therefore there are endless possibilities in 2025 for you to start a video on demand service of your own with every tryout..
So, let us start from the first step here:
- Create Unique Video Collection .
- Discover Your Niche
- Obtain Streaming Rights.
- Finalize on revenue models.
- Build a top video streaming website.
- Upscale via Mobile
- Boost Content with Marketing Funnel
Step 1: To get started with your business, the first thing that you need is to create a strong library of videos to make the audience invest in your digital entertaining store worthwhile.
Step 2: If you are looking to grab the attention of a heavily crowded space, it becomes necessary to do something that others are not doing.
And that would be creating uniqueness with your own niche found. In other words, decide on your business plan by creating a video streaming website like Netflix.
Step 3: Once you are definite about the contents that you plan to stream, it’s perfect to get those aligned with your business plan.
You can approach content owners & distributors to acquire individual content rights to publish their copyrighted content into your online video platform.
Step 4: Then, molding your revenue is utmost necessary as per legal terms of content usability.
Get a clear understanding of types of revenue models such as SVOD, TVOD, AVOD, CatchUp TV, Paywall Feature, SSAI, and others.
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👉Recommended Read: Difference Between CSAI vs SSAI
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Step 5: After that, you can start by building a website of your own to host your videos.
You can now have numerous turnkey solutions from top video streaming platform providers which are affordable to launch your video on demand services on the move.
Step 6: Now the time has come, where you can get a major proportion of the video streaming audience which is highly dependent on mobile apps.
Upload content consistently to keep your viewers engaged through platforms like Android, iOS. Since mobiles are chosen over computers, build a video streaming app or website & this would assure lump sum results.
Step 7: And finally, promote your platform well to reap extraordinary benefits while earning money.
After finalizing a business niche, license, website and also platform integration into mobile apps readily, the last step that’s left to do is — bring-in subscribers.
You can run promotional ad campaigns, add SEO-focused video descriptions, and 10-30 seconds video snippets to entice audiences to view your content. Apart from that, you can:
Grow Socially: Use every integral aspect of social media marketing and also get people to let your platform know through it.
Monetize Ads: According to your marketing planned budget, traditional adverts can give a great head start.
Emailing Prospects: Build a list of mailing contacts of your customers for you to alert them when your planned videos go live.
Start Your VOD Journey With VPlayed
Now that you understand how important online video platforms are for your business, finding the right VOD hosting service for your content is of utmost importance.
VPlayed stands out as a top choice for any type of professional video streaming. It offers advanced features that distinguish it from other VOD services available in the market.
VPlayed is a fully customizable white-label OTT platform, that allows you to build and promote your own brand without any issue whatsoever.
You can stream videos on-premises or in the cloud, and its built-in video CMS platform makes managing your uploads simple and easy.
With support for multiple devices and progressive web apps, VPlayed ensures a smooth experience for viewers across all platforms.
In addition to the basic VOD monetization options, VPlayed also includes unique revenue models like Catch-up TV and Push TV.
Challenges and Drawbacks in VOD ?
One of the significant drawbacks is VOD lacks live streaming functionality, for users who are interested in live streams. This is a downside!
VOD can often be tiring due to the lack of content options available in the VOD platforms, to avoid this businesses should update and market new content.
Conclusion
Video on Demand is an excellent way to connect with the audiences and make meaningful relationships that go a long way in business growth.
A best video hosting platforms gateway that streamlines the entire content delivery process is your perfect partner in achieving your business goals and also climbing the ladder of success swiftly.
Frequently Asked Questions(FAQ):
Video on Demand (VOD) in streaming is where you can watch videos, TV shows or movies whenever you want. VOD gives you the choice to pick what to watch and when to watch it.
Video on Demand (VOD) stores digital content on a server. When you select content, it gets compressed, sent over the internet, then decompressed and played on your device. That’s how you can watch whenever you want, no interruptions.
There are various types of VOD business models like SVOD, TVOD, AVOD and SSAI. These models help video streaming businesses make money by offering different ways for viewers to access content, to cater to different preferences and make VOD more popular.
Setting up a VOD service is a smart move considering the industry’s growth. Work with experts who create VOD websites and implement solutions to make money from your content. That will increase your chances of launching your VOD service in any market.
The main advantages of VOD is to have a steady business model with regular income. This approach reduces the need for big upfront investment especially when using a fully branded platform. Plus, giving customers access until their subscription ends increases their overall satisfaction.
To choose the right VOD service, think about your business, budget and target audience. Look at factors like content licensing, how customizable the platform is, ways to make money and how it can grow with your business. The best VOD service should make it easy to manage and share your content.
VOD has various types: SVOD (subscription-based), TVOD (pay-per-view), AVOD (ad-supported), SSAI (targeted ads in AVOD), PVOD (premium content for extra fee), NVOD (scheduled programming like traditional TV). These options cater to diverse viewing preferences and business models.
