What is VOD(Video On Demand)?

Video on Demand (VOD) is a famous streaming service that allows customers to get entry to and watch video content material at their comfort.

As of 2021, VOD has witnessed an exponential increase, with an international sales forecast of $159.62 billion with the aid of 2024, driven with the aid of the growing adoption of smartphones, excessive-speed internet, and the increasing demand for personalized entertainment.

In the United States alone, VOD viewers reached 207 million in 2021, and the variety is projected to preserve increasing. Major VOD systems like Netflix, Amazon Prime Video, and Disney have dominated the marketplace, imparting a sizable library of films, TV shows, and unique content. The comfort of on-call for viewing, the energy to pick from a huge variety of content material genres, and the capacity to binge-watch the whole collection have contributed extensively to the recognition of VOD offerings worldwide.

As the streaming enterprise maintains to comply, VOD is predicted to live a dominant pressure, reshaping the way audiences consume enjoyment.

What is VOD?

Video-on-demand (VOD) is a technology that enables individual subscribers to access and watch video content, including films, TV series, sporting events, concerts, and user-generated videos, at their preferred time. VOD services employ pay-per-view and subscription models to monetize the content, giving viewers the flexibility to pause, play, fast-forward, rewind, and re-watch shows as per their convenience.

Why VOD is Important?

The importance of top video-on-demand platforms lies in their ability to offer viewers the freedom to watch favorite movies and TV shows at their own convenience, unlike the pre-scheduled broadcasts enforced by traditional TV providers, whether through cable or satellite. Imagine owning a DVR from your service provider, allowing you to record and playback any TV show, series, or program, including sports and movies. However, the undeniable advantage of video-on-demand is the flexibility it provides, as it enables viewers to enjoy any movie at any date and time leisurely without being bound to fixed schedules.

How Does VOD Work?

A Video on Demand platform operates in a series of steps. First, the video is converted into a digital format and stored on a video server. Then, it undergoes compression and is transmitted to the viewer through broadband or cable. Upon reaching the viewer's device, the video is decoded and extracted using a set-top box, where it is stored on a video server. Finally, the viewer gains the freedom to watch the video at their convenience, controlling playback speed and other aspects like start, pause, and stop. This VOD streaming method ensures high-quality streaming and a personalized viewing experience.

How Does Video On Demand Make Money?

Video on Demand (VOD) operates by sending data packets from the server hosting the video content to the viewer's advanced video player. VOD providers generate revenue through two primary models: advertising video on demand (AVOD) and subscription video on demand (SVOD).

Read Also this : How OTT Platforms earn Money

Types of VOD Models

Here are the top three video monetization models to generate revenue from your offerings:

TVOD or Transactional VOD: TVOD follows a pay-per-view model, ideal for popular videos with small libraries. Viewers can purchase or digitally rent specific content they want to watch. TVOD includes two categories - EST (Electronic Sell Through), providing permanent access to content through a one-time payment, and DTR (Download to Rent), offering access for a scheduled period at a smaller fee. Examples include Google Play and iTunes.

SVOD or Subscription VOD: SVOD is a popular model for diverse content creators with extensive video libraries. Viewers subscribe to a video service for a set period (weekly, monthly, yearly) to access its content. Once subscribed, viewers can enjoy unlimited content from the online video library. Subscription plans are auto-renewable and can be canceled at any time. Examples are Netflix, Hulu, and Amazon Prime.

AVOD or Advertising VOD: AVOD relies on ads for generating revenue. Viewers can stream content for free but must watch inserted ads. VOD ads come in three categories: Pre-roll (at the beginning), Mid-roll (in the middle), and Post-roll (at the end). The AVOD model generates substantial revenue due to its large viewer base. Examples include YouTube and Daily Motion.

Explore More: AVOD VS SVOD VS TVOD

What are the benefits of using VOD (Video on Demand) for your business?

Here are some key reasons why businesses should consider using VOD (Video on Demand) for their growth:

Convenience: VOD allows customers to watch content at their convenience, without any time or location restrictions. Viewers can access videos from anywhere in the world, providing businesses with a global reach. Additionally, VOD services offer flexibility, as customers can easily subscribe or unsubscribe as per their preference.

Online Community and Passion: With VOD, creators can build communities around their video content, connecting with people who share their passion for specific topics. This fosters better engagement and a sense of belonging among viewers, leading to increased business success.

Source of Passive Income: Setting up a video subscription platform enables a steady stream of income for service providers without the constant need to acquire new customers. Building an online community can also lead to organic growth and increased customer base.

Control Over Content: VOD platforms give creators complete control over their content, allowing them to produce videos that align with their creative vision without being bound by advertiser guidelines.

Monetize Existing Fanbase: Businesses with a substantial social media following can direct their fans to their VOD platform, converting followers into viewers and generating additional revenue.

Unlimited Customers & Accessibility: VOD platforms offer broad accessibility across various devices, making it easy for audiences to access content on laptops, computers, or mobile phones. Moreover, VOD services can cater to an unlimited number of customers, maximizing revenue potential.

Ad-Free Entertainment: VOD services provide ad-free streaming, which appeals to viewers and can lead to higher customer retention and loyalty.

What are the initial steps to begin VOD streaming?

Starting your own VOD platform can be a beneficial decision to grow your business, offering entertainment services, as well as opportunities for business communication, education, and training. VOD, which stands for Video-On-Demand, allows users to access video content stored in online libraries whenever they want to watch it.

Here are the initial steps to get started with your VOD streaming business:

Create a Unique Video Collection: Build a strong library of videos to attract audiences and make your platform appealing.

Discover Your Niche: Differentiate your platform by finding a unique niche or business plan, setting your VOD service apart from competitors.

Obtain Streaming Rights: Secure content rights by reaching out to content owners and distributors to publish their copyrighted content on your platform.

Finalize Revenue Models: Decide on revenue models, such as SVOD (Subscription Video on Demand), TVOD (Transactional Video on Demand), AVOD (Ad-Supported Video on Demand), CatchUp TV, Paywall Feature, SSAI (Server-Side Ad Insertion), etc.

Build a Top Video Streaming Website: Develop your website using turnkey solutions from reliable video streaming platform providers.

Upscale via Mobile: Recognize the significance of mobile apps and create a video streaming app or optimize your website for mobile access.

Boost Content with Marketing Funnel: Promote your platform through various strategies like social media marketing, advertising, email marketing, and SEO-focused video descriptions. Engage with your audience and build a subscriber base to ensure long-term success.

By following these steps and implementing effective marketing strategies, your VOD streaming platform can attract users and generate revenue while offering valuable content and entertainment to your audience.

Begin your VOD journey with Flicknexs.

Having understood the significance of online video portals for your business, you might be interested in finding a suitable VOD hosting service for your content. Flicknexs is an excellent choice for next-generation video streaming.

Flicknexs offers cutting-edge features that distinguish it from other VOD streaming solutions. It serves as a white-label OTT platform, providing 100% customization to establish your brand identity.

With Flicknexs, you can effortlessly stream videos on-premises or on the cloud while managing your uploads using its built-in video CMS platform. The platform's multi-device support and progressive web apps ensure a seamless viewing experience for potential audiences.

Moreover, Flicknexs offers a range of revenue generation models, including Catch-up TV and Push TV, in addition to the three basic VOD monetization options, allowing you to maximize your income potential.

Conclusion

Video on Demand is a powerful tool for connecting with audiences and building meaningful relationships that contribute to business growth. Partnering with a reliable video hosting platform that streamlines content delivery can help you achieve your business goals and climb the ladder of success efficiently.