Long gone are the days of waiting for the newest episode of your favorite show to air and making sure you’re home and in front of the TV when it does. With VOD streaming services springing up everywhere, people have come to appreciate (and expect) the option of consuming content when and how they want to.
With this in mind, it is no surprise that the VOD industry is booming. Are you looking to get into the business of video broadcasting? Before you get started, it’s important to fully understand just what VOD is and how it works.
- What Is VOD Streaming
- How VOD Streaming Works
- VOD Streaming vs. Live Streaming
- VOD Streaming vs. OTT
- The Benefits of Implementing the On-Demand Model in Your Streaming Business
- VOD Streaming in Numbers
- How to Choose the Best Monetization Model for Your VOD Streams
- How to Launch a Video-on-Demand Streaming Platform
- Start a Video-on-Demand Streaming Business With TargetVideo
What Is VOD Streaming
VOD or video-on-demand is a video distribution method in which viewers can access content when they want to. This stands in contrast to linear TV, which follows a predetermined schedule, and live streaming, in which users view content as it is being produced. Many major streaming services function on an on-demand basis, including Netflix and Hulu.
How VOD Streaming Works
In order to create a VOD service, the publisher must first upload the content to a server. They can either self-host this content on their proprietary server or use an online video platform that offers secure video hosting services. The latter is generally a more affordable and safer option.
Some video platforms will also cover other steps in the process, such as creating a video library, setting up a monetization model, and so on. The publisher can also build a video-on-demand website and launch their own OTT streaming service.
When a user tries to access a certain video, the request is sent to the server. The server then sends back a compressed video file to the streaming device. Once it reaches its destination, the file is decompressed and decoded, and the HTML5 video player allows the user to play the video.
Reliable video-on-demand solution.
– Video Hosting
– High-Quality Streaming
– Content Management
– Ad-Powered Monetization
VOD Streaming vs. Live Streaming
As we have already mentioned, one of the discerning characteristics of VOD is the on-demand aspect of it. In other words, users can access VOD content whenever they want. On the other hand, live streams must be accessed and viewed as the content is being produced. Live streaming is often used for sporting events, award ceremonies, live classes, and so on.
However, VOD and live streaming don’t have to stand in stark contrast with each other. Namely, once a live stream is over, the publisher can choose to make it available for later viewing as a piece of VOD content.
VOD Streaming vs. OTT
The terms VOD and OTT are often used interchangeably, but they don’t really mean the same thing. OTT stands for over-the-top, and it denotes any streaming service that distributes content over the internet, thus bypassing traditional channels such as cable and satellite.
Users can access this content through the streaming service’s website or an OTT app on their phones, tablets, CTVs, and so on. OTT streaming services can offer VOD content, live streams, or even both, as is the case with YouTube.
The Benefits of Implementing the On-Demand Model in Your Streaming Business
Implementing VOD can help you scale your video business tremendously. Let’s take a look at some of the main benefits this streaming method can bring you:
- It attracts more viewers — VOD’s popularity has been on a steep rise for years. The freedom to choose to watch content when they want is the main benefit that users list. It is simply much more convenient than traditional TV.
- It has higher video completion rates — Since users can watch your content on their own schedule, they are more likely to sit through the entire on-demand video than a live stream. And higher completion rates can improve ad-based monetization.
- It is easier to produce VOD content — Live streams can be notoriously difficult to produce. Since the audience views them in real time, there is no room for error or redos. This is not the case with pre-recorded content.
- It gives the audience full control — When viewers access your content, they are free to pause, rewind, rewatch, fast-forward it, and so on. This level of control over the stream attracts users who enjoy consuming content on their own terms.
- It opens multiple monetization options — VOD can be monetized in a multitude of ways. In addition to this, if you decide to turn your live streams into VOD for later viewing, you will have a chance to repeatedly monetize a single piece of content.
VOD Streaming in Numbers
We’ve already mentioned that VOD is a highly popular video streaming method. But what do the exact numbers say? Let’s take a closer look at some VOD streaming statistics and trends:
Global VOD revenue has been experiencing an upward trend:
- 2022 global VOD revenue: just under $95 billion
- Expected 2023 global VOD revenue: over $111 billion
This growth in revenue is largely due to the growth in the user base:
- Number of users in 2022: 1.4 billion
- Expected number of users in 2023: 1.6 billion
With positive projections for the future, it is no wonder the VOD industry is calling your name. But if you want to launch a video business and monetize your content, you will first need to pick the right monetization model.
How to Choose the Best Monetization Model for Your VOD Streams
VOD can be a highly profitable channel for any video business. However, to make the most of it, it is important to understand the main video monetization models, how they work, and what they are best used for.
AVOD: Advertising Video on Demand
AVOD, or advertising video on demand, is the process of monetizing on-demand content through advertisements. In other words, publishers sell ad inventory to brands and advertisers and, in turn, they generate video ad revenue for every advertisement their viewers see.
If you opt for this monetization model, you will need a reliable AVOD platform in your corner. Such a platform can serve as a mediator between you as a publisher and demand sources (i.e., brands and advertisers) and automate the process of ad trading.
SVOD: Subscription Video on Demand
SVOD, or subscription video on demand, is a video monetization strategy based on monthly, weekly, or otherwise recurring subscriptions from returning customers. Most VOD streaming providers offer multiple subscription tiers with varying features. For instance, more expensive plans can include more content, higher-quality streams, multiple user profiles, and more.
If you decide to monetize your on-demand library through subscriptions, you will have to invest in a secure paywall. In addition to this, reliable customer service will be a must.
TVOD: Transaction Video on Demand
TVOD, also known as transaction video on demand, is a VOD monetization strategy based on individual transactions, as opposed to recurring payments. Users can pay to view a single piece of content once or they can pay for access to this content for a certain period of time (or indefinitely).
Transaction-based monetization is quite popular for live streams, but it can work great with VOD, too, especially in the case of premium content users can’t find elsewhere. As with subscriptions, TVOD requires a secure paywall integration and customer support.
Hybrid
The term hybrid monetization encompasses any combination of two or more basic monetization models. One of the most popular hybrid models is the crossover between SVOD and AVOD monetization. Streaming services can offer a free, ad-supported plan to users who aren’t looking to spend money on video content. In addition to this, they can offer one or more paid plans that don’t show ads but may include additional content or other features.
How to Launch a Video-on-Demand Streaming Platform
Launching a video-on-demand streaming service can be a great way to monetize content and spread your ideas to the world. Of course, you can also do so by simply uploading your videos to a video-sharing website like YouTube. However, if you do that, you will have limited control over monetization, and, more importantly, you will have to share your revenue with the platform.
A much better way to launch a VOD business is to have your own website where viewers can access your library. Additionally, you can create OTT apps for mobile phones, tablets, and CTVs, so your audience can enjoy your videos through different channels.
However, building the entire infrastructure from scratch (online video player, security features, hosting server, etc.) costs a small fortune. A much more cost-effective alternative is to find a reliable video-on-demand platform. The right platform will have all the necessary solutions to streamline and simplify this process.
The TargetVideo platform features a lightweight, fully customizable HTML5 player with adaptive bitrate streaming for an optimal viewing experience. In addition to this, we offer unlimited private video hosting to all our clients at no extra cost. We will also ensure all your content is safe and protected from unauthorized access through state-of-the-art DRM solutions. And lastly, we have white-label apps to allow you to deliver content on OTT, CTV, and mobile.
In short, with TargetVideo, you will bypass all the unnecessary effort and costs related to launching a VOD business, aside from building a website.
Start a Video-on-Demand Streaming Business With TargetVideo
With a VOD streaming service, you will be able to get your content out into the world. But to do so, you will need a reliable partner by your side. TargetVideo offers all the services you need to launch your VOD business and monetize it through ads. From hosting your content on our servers to providing you with high-quality ad demand, we will be with you every step of the way. Join TargetVideo today to launch your VOD business and start monetizing.
