Video on Demand (VOD) – Types of VOD Monetization Models

OTT platforms are continuously seeing a rise in terms of growth, demand, and monetization. People nowadays are preferring to watch video content on different video streaming platforms rather than on television sets. This led to an increase in demand of OTT streaming services and thus, most of the OTT platforms are integrating video on demand services in order to meet the viewers demand and avail huge profits with the utilization of monetization models. So, what is a video on demand and what are the types of VOD available? Let’s get into detail about all these.


What is Video On Demand (VOD)?

VOD (Video on Demand) is a streaming service that lets users choose and watch TV shows online or web series on a particular OTT platform at any time and being anywhere with a mobile phone, OTT app, and an internet connection. Thus, in various video streaming platforms; movies, web series, and TV shows are uploaded and made accessible online so that viewers can watch them at their convenience. Therefore, with this flexibility, OTT platforms with video on demand services are high on demand. Furthermore, there are different monetization models with VOD Services and they are SVOD, TVOD, and AVOD. 

What is SVOD (Subscription Video On Demand)?

In order to watch video content on an OTT platform, you need to pay a certain amount of money as subscription charges. That is, until and unless you pay, subscribe, and register an account on OTT platform, it will not allow you to watch some sort of video content. Therefore, SVOD, also referred to as Subscription VOD allows users to access and watch TV shows online, web series, or unlimited video content charging a small recurring fee. 

Furthermore, one of the best examples of SVOD (Subscription Video On Demand services) is Netflix. Here, in this type of video streaming services on OTT platforms, you pay some sort of money for a month or three months or one year and watch videos of your interest at your feasible time just with a mobile phone and internet connection. However, SVOD is one of the best monetization models for most of the OTT platform owners.  

What is TVOD (Transactional Video On Demand)?

TVOD (Transactional Video On Demand) is a VOD service that works exactly opposite to an SVOD model. It is a paid model of video on demand services where you pay money based on the content you watch on an OTT platform. That is, if you watch a particular movie or web series of 10 episodes, then you need to pay money just for it. 

Furthermore, examples of TVOD (Transactional Video On Demand) services are Google Play and iTunes. 

What is AVOD (Ad-based Video On Demand)?

AVOD, also known as Advertising VOD is theoretically a free model to the consumers. Here, most of the business owners plan their marketing campaigns as per their strategy and create free video content that can be accessible in-between while people watch video content on the internet. It creates brand awareness for most of the businesses and they can gain customers for their products or services. 

However, the amount earned from Ad-based VOD models is generally low as compared to Subscription VOD and Transactional VOD. Furthermore, in order to make sure that you do not miss revenue from this AVOD model, you can integrate it to your OTT platform along with other Video On Demand monetization models.


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