Chances are, you’re one of the millions of people around the world who use VOD every day. It’s the most popular way to watch video in 2021, from entertainment to commercials. vod (video on demand) is the present and future of broadcasting. a report by Conviva shows that video on demand viewing is growing 155% per year, with an average of 17.1 minutes spent per session.
What is Video on Demand?
VOD or video on demand gives viewers access to TV shows, movies and other video content at any time. Its core meaning is reflected in the fact that your users can now easily select programs from a content database and watch them instantly on their TV, computer or mobile device through an interactive interface. They can simply click on a link to start watching a video. For example, if you click on the embedded YouTube video below and start playing, it’s video on demand in its purest form.
Profit from VOD
Just like OTT advertising, you can profit from VOD content through three main options: Subscription Video on Demand (SVOD), Transactional Video on Demand (TVOD), and Ad-Supported Video on Demand (AVOD).
Subscription Video on Demand (SVOD)
Subscription Video on Demand (SVOD) is one of the most popular ways to profit from the VOD platform. The SVOD model works by allowing users to pay recurring fees to access your content. As long as you have content that people are willing to pay for, SVOD is often one of the most profitable ways to generate a steady stream of revenue from your platform. With SVOD, you can create different access levels at different price points, making your VOD content available to a broader audience.
AVOD (Ad Supported Video on Demand)
Another form of making money from streaming video is through advertising. With this VOD business model, business owners can create content that users can watch for free. Videos that gain a large audience make money through this model. Content owners also have the option to insert ads that allow them to earn revenue from advertisers.
Advertising can be very powerful. As a result, advertisers are willing to pay content owners to allow them to stream their ads. What’s more, content owners can set the number and type of ads they want to display in their video content. Paid ads such as these help make the AVOD platform popular with content owners.
TVOD or Transactional VOD
Transactional Video on Demand is based on a pay-per-view monetization model and is best suited for the most popular videos with small video libraries. Here, viewers purchase or digitally rent specific content for what they want to watch.
TVOD business models are further divided into two categories – EST (Electronic Sales), where viewers can access content in perpetuity for a one-time payment, and DTR (Download to Rent), where they must pay a lower fee to access content for a predetermined period of time. examples of TVOD monetization models are Google Play, iTunes, etc.
Choosing the right revenue model for your VOD business can be challenging. However, you can take advantage of a ready-made panel of professionals who will consult with you on your specific business needs, no matter how different they may be. They can help you choose the VOD revenue model that best fits your business.
Xmediatv offers the latest features that set it apart from other VOD streaming support. It is a white-label OTT platform that offers 100% customization to build your own brand.
You can stream videos locally/in the cloud and manage your uploads with its built-in video CMS. Its multi-device support and progressive web applications provide a smooth experience for potential viewers.