VOD (Video on Demand) is the present and future of the broadcasting industry. A report by Conviva suggests that video on demand is viewing up 155% year-by-year with an average of 17.1 minutes spent per session.
A recent survey by Hubspot revealed that people prefer video overall & other forms of content including infographics, blog posts, and emails.
Cisco Systems predicts that 70% of people will own mobile devices by 2023, and consequently, the demand for 4K/UHD video content will double up.
These statistics clearly show that video on demand is on the rise. It is currently one of the most profitable businesses to tap into. This article discusses the VOD platform model in-depth and how businesses can benefit from it.
What is VOD?
Video-on-demand (VOD) is a technology that allows for the immediate delivery of video content, such as films and TV series, to individual subscribers.
It encompasses all varieties of user-requested on-demand video content. These might be expensive movies, TV show archives, sporting events, or concerts. Besides that, it might also contain user-generated video content. Pay-per-view and subscription models (monthly, half-yearly & annual) are typically used to monetize VOD services.
Looking into how does it all work, we come to know that on demand, which also abbreviated as VOD or Video on demand allows viewers to watch a movie or television show whenever it is convenient for him or her’s schedule. Viewers can pause, play, fast-forward, rewind, and re-watch the show as many times as they want with On-Demand.
Video on Demand provides an interactive technology for delivering video-based content such as movies, television shows. Basically, VOD allows individual viewers to watch a video from a content library for immediate viewing which can be accessed on their TV, personal computer, mobile phone, or any other device
The VOD service is offered by the means of a cable, telephone provider, or broadband and provides viewers with the option to pause, play, rewind, or fast forward the video as per their wish.
Video-on-demand has 3 core advantages. It allows viewers to:
Take a glimpse of 3 core video-on-demand advantages. It facilitates users to:
Watch At Any Hour – Allow your users to play content at any time they prefer.. Unlike “linear” TV auto programming, where VOD is not dependent on a planned timetable.
Take Liberty To View Favourites – Viewers have more opportunities to handpick and select what they want to watch, in comparison to traditional pre-scheduled viewing.
Keep Media Controls in Hand – Users can play, stop, rewind, quick forward, and totally control how they watch content. Along these lines, they’ll miss nothing significant.
Why Video on Demand is Important?
The significance of top video on demand platforms lets you know when favorite movies, TV shows can be watched at your own convenience instead of pre-scheduled watches that are decided earlier by traditional TV providers in both cases of cable & satellite. Let’s imagine that you are owning a DVR from your service providers that facilitates you to record and playback any TV show, series or programs like sports, movie etc. Surely, the fact can’t be ignored if any movie at any date & time can be broadcasted to enjoy them leisurely.
How Does Video On Demand Work?
A Video on demand platform works in the following steps.
- The video is converted into digital format and stored in a video server.
- It is then compressed and transmitted to the viewer via broadband or cable.
- After reaching its destination, the video is decoded and extracted via the set-top box and stored on a video server in the viewer’s device.
- The viewer can now watch the video and control its playback speed and other aspects (start, pause, stop) at their convenience.
Videos streamed this way using VOD offer superior streaming quality with a personalized watching experience
How Does VOD Makes Money?
Like it is previously mentioned about VOD’s definition that’s On-Demand typically sends packets of data retrieved from server hosting video content that is delivered to your advanced video player. Providers of VOD usually create impactful video on demand content to make money with primary two models & they are advertising video on demand (AVOD) & subscription video on demand (SVOD).
Recommended Reading: How To Build A Billion-Dollar Video On Demand (VOD) Website?
Different Types of VOD Models to Choose
The success of a VOD business depends on the content strategy and monetization model chosen.
With the right revenue generation method, one can achieve their monetary goals along with building and popularizing their brand.
As a content owner, you may be wondering….
How well to use and extract maximum revenue by using VOD. Then, let me tell you are at the right place, where you can find several ways to convert video content & make incredible profitability.
Here are the top three video monetization model 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 are auto-renewal and can be canceled 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 can stream the content for free but are stressed to watch inserted ads as well.
The VOD ads are classified into three categories: – Pre-roll (plays at the beginning), Mid-roll (plays in the middle), and 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.
Why Your Business Should Use VOD
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 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.
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 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.
By creating original content on a topic, they can bring those people together who are interested in the subject.
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 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 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. There are no advertisers’ guides to be followed that can hamper the implementation of their creative vision. One can create videos on the go and share them with the world while being their most authentic selves.
● Monetize your current fan
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 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 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 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 2023 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 audiences’ 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.
Recommended Read: Difference Between CSAI vs SSAI
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 provider 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, develop 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 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 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 CONTUS VPlayed
Now that you know how important online video portals are for your business, you may want to find a suitable VOD hosting service for your content. VPlayed is an excellent option for next-generation video streaming.
VPlayed offers the latest features that set it apart from other VOD streaming support. It is a white label OTT platform that comes with 100% customization to establish your own brand.
You can stream videos on-premises/on-cloud and manage your uploads with its in-built video CMS platform. Its multi-device support and progressive web apps provide a smooth experience to potential viewers.
VPlayed also features a variety of revenue generation models that include Catch-up TV and Push TV, in addition to the three basic VOD monetization options to maximize your income.
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 climbing the ladder of success swiftly.
If You Already Have an Idea About Starting a Video on Demand Platform, Schedule a Free Demo and We’ll Get You On The Road To VOD Streaming Success!
Frequently Asked Questions(FAQ):
1. What Is VOD In Streaming?
Any video service that makes interesting videos, TV shows, or movies that are available at a viewer’s leisure is referred to as video on demand streaming. Video businesses can leverage the VOD business model, giving viewers to choose what they want to see and when they want to watch it
2. How Does Video On Demand Work?
Main advantage of VOD services is that the targeted viewers can watch their content without any interruption on any device. When we look into its technicalities the digital content is securely stored on a video server. The process starts when the user selects a content, it is compressed online and then decompression with decoding happens before it arrives on the viewer’s screen.
3. What Are The Types Of VOD Business Models?
There are millions of video businesses who compete in the digital world with established brands in the world today. The key reason of its due popularity is covered with the fact of how one can generate consistent profitable revenue. When one defines what’s VOD, the subscription services, like SVOD, TVOD, AVOD, SSAI, etc help businesses to produce optimum revenue.
4. How To Setup A Video On Demand Service?
If you’ve certainly made up your mind in setting up a VOD business you have made a wise decision. The growth in VOD has imparted a major difference & boomed the overall marketplace in the USA & across the globe. You can now talk to streaming experts who are well versed in setting up your VOD website and incorporate on demand solutions to monetize your content.
5. What Are The Benefits Of Video On Demand?
The best part of acquiring VOD solutions is to have a well-thought-business plan that provides you with constant recurring revenue streams. Since time & again large capital investments aren’t necessary, it serves as a merit in the long run when its platform is entirely white labeled. Giving continuous access until the subscription expires gives a leveraging factor to your customers too.
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Hi… I understand the requirements that you have been searching for.. You can integrate an entire VOD streaming platform & whitelabel it forever or rather I would recommend you to choose an educational video platform which can be solely dedicated to stream elearning on demand or live content. And, to have monetization options with individual platforms you can get in touch with our experts at https://www.vplayed.com/contact-sales.php.
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Hi.. Thanks for getting back to us.. You can now help users to have personalized video watching experience with user-centric & professional VOD streaming platform. For exploring pricing structure, you can get in touch with our in-house streaming experts. All you need to do is fill in the details via the contact us page, & we’ll get back to you shortly.
Greetings, Detailed information on what is a vod? and I need to develop and deploy an entertainment app to support our customers in video on demand. We have 5 veterinaries and regular 46 customers. What is the pricing and business model we can use? It’s imperative that the app will be a premium video on demand, only showing our brand. Looking forward to doing business with you, best regards, Alex Lana
Hi Alex… Thank you for approaching us to develop your video on demand platform along with a dynamic app for showcasing your VOD works.
You can feed-in your queries with necessary information in this page: https://www.vplayed.com/contact-sales.php and our team will quickly contact you.
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Hi.. Thanks for enquiring… You can have all services put together in one unified solution from VPlayed. Let us know with your details through the contact us form & we can have a quick chat to take things forward.. Also you can request for a demo to have an idea of launching a VOD streaming platform.
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Hi Ana, To have a perfectly suited business model, we recommend you to have a video on demand platform where you can provide lucrative opportunities for service providers to showcase their unique content in the form of in-stream ads.. On the other hand, you can broadcast blockbuster video releases to your end-consumers maximizing profits in a short time with monetization model.
Greetings, Still no response from anyone about my request. Please I would like what is vod? to know if I can get a vod streaming for my teachers to create their own live classes for the student and if I can get VOD solution for the lesson plan created for my online school website, although we will be using this company for the live class lesson, whiteboard screen sharing, video recording, etc…please get back to me asap
Hello.. Firstly, we would like to apologize for keeping you waiting for a long time. We deeply appreciate it. You can let us have your contact details as our technical team would get in touch with you in a jiffy to provide more inputs to build an educational platform & deliver live class sessions, lecture capture, etc.
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I plan to build a VOD streaming platform that sellers can do live-stream to sell their products. I need to use third-party service that can make this casework and i’m looking for what is vod and their service providers. VPlayed is fit for my requirements?
Yes definitely! Without any doubts, you can build a whitelabel video on demand platform with customized functionalities along with niche requirements like live streaming, third-party integration, etc. To facilitate with an array of feature-rich platform, you can check wide opportunities to monetize at: https://www.vplayed.com/
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I am looking for what is vod? , video on demand platform or solution for my youtube channel. Looking forward to getting your estimate. Regards Jain
Hello Jain.. While you are in search of video on demand works your own channel you can have your monetization model as well as cast live content in a video on demand platform from VPlayed where you can store numerous content with an extensive video CMS library. To have estimated figures, you can drop-in your queries in contact us form & our sales team will contact you soon.
We are a movie production company based out of Singapore and we are looking for a video on demand, what it is, for a movie vod streaming. We would like to know more about the pricing and other commercial details.
Hi… Thanks for taking the time to let us know with your feedback. You can now have the pricing structure to launch your own video on demand platform with other related information through our sales team https://www.vplayed.com/contact-sales.php.
Meanwhile, you can have refer things that you need to know before what it is, & how to stream video content works via https://blog.vplayed.com/what-is-vod-streaming/
Looking to what id vod? with integrate vod streaming into our eLearning online classes. Can you please provide details of how your vod streaming works with Fluter and web? Also, provide details about your pricing.
Hello, I am contacting you on behalf of one of our customers, I would like to know some information about your vod platform works. Is it possible to know your pricing model for your video on demand solution, your hosting solution, what is a vod and order of price for about 5 million subscribers? Best regards, Clara Lê
Hi clara.. Thanks for getting back to us. You can have detailed information about how to create an end-to-end budget-friendly video on demand platform from our technical team of streaming expertise.
For getting in touch you can click on https://www.vplayed.com/contact-sales.php & send-in your queries & we’ll be happy to answer them quickly.
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Hi.. You can have varied streaming solutions of your choice from VPlayed. It is not necessary to have only a solo streaming platform for premium movies but customize it to add your thousand+ content even with general youtubers. The key highlight is you can earn better returns than streaming in Youtube, as you can keep 100% of your earned profits. To have detailed insights on them, get in touch with one of our specialists through https://www.vplayed.com/contact-sales.php.
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