VOD streaming: What is this and how does it work? - Blog

Video on demand (VOD) is the future of TV. A recently released report revealed that the number of people who watch video on demand is up 155%, with an average of of 17.1 minutes per hour.

Based on Forbes, 82 percent of US broadband households are connected to at minimum one VOD, and 46percent of broadband homes are subscribed to 4 or more streaming services.

The average amount of consumption of VOD is increasing There are a lot of unanswered questions about the concept of video streaming. video on demand? What can companies and creators of content profit of VOD streaming? What is the most important thing we should know to get started?

Good news! We've answered all your questions in this post and it's a relief to know that VOD is actually a lot easier than it appears.

Let's get started.

What does VOD stand for?

This is why VOD is growing in popularity. Internet-connected devices will triple the global population before 2023, and demand for content will double.

The accessibility (all you need is a device with an Internet connection! ) and the options for making money from VOD are endless.

Many different kinds of VOD models for monetization.

VOD comes in many varieties.

You can use it to build a subscription video channel, free video (that have advertisements) and one-off videos for special events and premium video. These are also referred to as

• Subscription video on demand (SVOD)
• Advertising-based video on demand (AVOD)
• Transactional video on demand (TVOD)

For businesses, VOD is a way to earn regular revenue, scale up video content, and build an viewership.

Let's take a closer look at the various VOD types.

Subscription video on Demand (SVOD)

The popularity of the service has increased in the past decade and is expected to gain over 300 million subscribers by 2025 in the United States alone.

SVOD may be the finest example of the type of VOD platform that can create recurring revenue.

Since consumers pay subscriptions to access information (either either monthly or annual) It is crucial that businesses create an income stream that is steady while consistently producing content for their customers.

SVOD allows subscribers to:

• Classes and ongoing content that can be streamed throughout the day.
• Join or opt-out without the long-term contracts that traditional satellite and cable companies need.
• Choose the content you want to stream from a library which can be streamed over and over again.

After Covid-19, the fitness studio Systems of Strength needed to come up with a way to convert their brick and mortar fitness center into an online environment while maintaining the enthusiasm that comes through in-person classes.

When they sign up, customers can access over 800 fitness-related videos from System of Strength. Although the world is beginning to reopen The studio's digital head, Annette Grant, says System of Strength will continue to develop its SVOD offer.

The rest of the world tried to figure out this Band-Aid to patch together a temporary solution. Instead of using a band-aid approach instead, we were focusing on the future by using OTT which was not intended as a temporary fix, but a long-term vision.   Annette Grant / The System Works

Advertising video on demand (AVOD)

It works like this. Businesses create content that people are able to view at any time they want however, the videos contain ads in order to make money from advertisers. The AVOD platform is an excellent entry approach to getting involved in VOD due to the fact that it

• Lowers the barrier of entry for people who want to see your video content since it's completely free!
• You can watch it without traditional satellite or cable subscription.
• Easy to scale when the audience increases.

Another approach to using AVOD is by providing various pricing levels to customers. For example, Hulu offers a multi-tiered subscription which increases with additional advantages. For instance, one benefits is that there are no advertisements while streaming.

The good news is that there are other ways businesses can make profit through AVOD, thanks to the growth of influencer marketing as well as sponsored sponsorships.

Transactional video on demand (TVOD)

TVOD is a popular model for selling or renting out videos. TVOD model is favored by producers who wish to sell or lease out premium video or those who don't desire to commit to subscriptions.

Content creators can promote specific "one-off" releases or events that customers can purchase on top of their existing subscription. TVOD services work in a way that SVOD doesn't as it:

• Allows you to release exclusive, timely content for an additional income
• Gives you the freedom to make single video clips as well as series or feature films

As it gives viewers an opportunity to buy or rent video and videos, it's an excellent way for creators to expand their audiences without having to offer an annual or monthly subscription.

This was the exact path ISC Sports took when they made the decision to combine their traditional SVOD revenue model with an approach of transactional pay-per view. ISC Sports President Greg Maish says the pandemic has changed the game, opening possibilities for partnerships with other organisations ISC sports works with using the revenue-share model.

Monsieur. Maish says offering TVOD and live pay-per-view to its customers has become a bargaining chip for the company.

The transactional rev share model is now the basis of our business proposition, and we can still incorporate the content into the subscription side of our plan, providing the added benefits for our subscribers.   Greg Maish / ISC Sports

TVOD is also available in a different category which is live pay-per view. These are often events like huge conferences, or UFC fights. In these, people pay one-time fees to live stream the event.

What exactly is OTT?

The most well-known examples of OTT include companies such as Hulu, Netflix, Amazon Video as well as Disney+, but there are many other providers they don't even require cable television, just an internet connection.

While OTT is the standard now, it's important to look back a decade ago to how we used media in the past, before platforms such as Netflix hadn't made their mark. OTT has transformed how we consume content because we are able to:

• Access it anywhere with an internet connection.
• It's not just on the TV but on laptops, iPads, phones .... Even our watches!
• Pick the date we'd like to watch it thanks to on-demand libraries.

OTT is now a profitable tool for brands, small companies, and influential individuals seeking to grow their business and expand their audience and increase revenues. If you've figured out what these words mean and it's time to take a look at how you can incorporate VOD into your own business in order to build a profitable revenue stream.

How do you use VOD in your business.

It's clear that people seek niche content on video and are prepared to pay for subscriptions to get it.

The CEO of our company, Anjali Sud, says we're seeing five times more OTT channels being created now as compared to the same time in the year before. And those channels are getting 20 times more subscribers than in the past.

It is a matter of how does your business can get involved?

• Does the platform you choose serve as a home for your content, and also allow the possibility of monetization?
• It can stream across different device types?
• Does it offer quality streaming?

If you've decided on the VOD platform for your video content, you then need to decide which strategy you'll employ to earn revenue:

• VOD Users pay the recurring service (either each week, every month, or every year) for access to your complete collection of content.
• AOD: Customers can watch your videos for free (like on YouTube), and your business makes money from advertising that is paid
• TVODCustomers are able to purchase certain content in your library, like the show or episode, and pay a fixed price to watch it whenever they want. Business can also utilize TVOD to hold one-time occasions and offer them for sale through pay-per-view

Then, it's time to write the content. Below are three suggestions for getting you to the right place.

1. Start building your content library

Content libraries are essential parts of any VOD business model, especially when you provide the option of annual or monthly subscriptions for customers.

In order to make your library more appealing, you've got to start creating the content. Consider what makes services like Hulu as well as Netflix appealing.It's because there is tons of movies and shows to enjoy at the cost for a subscription that is monthly!

Prior to advertising subscriptions, your library should have enough material within it that you can justify the subscription price.

The company had just launched 15 studios across three cities. And then there was a pandemic that forced the company to switch over to digital overnight. The team quickly started piecing together videos: their CFO became an editor, and their Ops Coordinator was transformed into the production director.

Within just a few weeks the team was able to create the content they needed, and were finally able to start offering subscriptions to customers who attended in-studio classes. The subscribers now have access hundreds of classes, and more than 16,000 hours worth of content in addition to picking many new subscribers, including users who had never gone to the studios in person.

People who have never been able to be a part of Y7's studio are loving it, and just so appreciative of being able to achieve these kinds of flows.   Larson Levey / Y7

2. Stream on your own VOD home page

The creation of a viable income model for VOD is much easier when you own your library of content instead of relying on third party services such as YouTube.

It's about setting up your personal VOD library that gives you the option of choosing what content to show and what prices you'll set for subscriptions. The toughest part of running an OTT business is maintaining the website. There will be a developer working round the clock to keep your channel operating smoothly.

With the proper toolkit, you don't need to learn how code to host your own VOD home page.

3. Make sure your library of content is always up-to-date

Consistently and consistently updating content is essential to VOD strategies, particularly if you are selling subscriptions.

The regular uploading of great content not just a fantastic method of building a library that will attract new customers. It also helps keep your existing subscribers happy. Platforms like Netflix regularly add new content to their library and replace older licensed content with more recent, original videos.

What's interesting about Netflix's content library is the fact that it doesn't grow in a fast-paced manner. Instead, the platform keeps swapping out content so the users always have an exciting new selection to enjoy and is able to eliminate videos that are filling up the library.

What is the key to an enterprise-grade video platform?

For professional videos that are worthy of a subscription--you need the right platform.

• Live streaming is available to apps that support it across iOS, Android, tvOS, Amazon Fire, or desktop.
• Custom-branded apps and home page so that you don't need to depend on other platforms.
• Analytics so you can find out what is the most watched content, how long viewers watch for and from where they're watching from.
• API and SDK help.

The best thing about investing in an enterprise-grade video platform like is that you can do everything in one place without the need to assemble the various streaming platforms or tools that show your content to your audience.