Video on Demand Streaming- Everything You Need to Know

Video on Demand Streaming- Everything You Need to Know

24 August 2022

The streaming model of VOD or Video on Demand has gained matchless popularity in the last few years. In this blog, we will take you through some of the most significant aspects related to VOD. Here’s everything you need to know about Video on Demand Streaming:

What Is Streaming of VOD?

Video on Demand, or VOD, is a method of watching movies that enable users to watch movies instantaneously, whenever, wherever, and on any platform. The term “Video on Demand” highlighted the contrast with the then-dominant broadcast television system, which required viewers to be in front of their televisions during the times when their preferred television programme was scheduled.

These days, it’s not difficult to find information about VOD. You almost certainly viewed a video on demand now because it is so prevalent. It’s the entertaining kitten video you recently viewed on Facebook, your favourite Netflix series, or the product video you recently watched on a company’s website. Any online taped video that starts playing as soon as you press the play button is known as VOD. It’s not necessary to wait until the complete movie file has been downloaded.

Is live broadcasting the same as streaming VOD content?

Contrary to live streaming, VOD streaming is quite the opposite. Live streaming allows viewers to see the action as it occurs with a few seconds’ delay). So once more, the viewer must access the live broadcast at the appointed moment. Consider live sporting events or corporate gatherings like town halls. VOD streaming makes use of previously filmed material. Having said that, a live stream can be recorded as a video file and used for VOD after the live broadcast.

In fact, it’s regarded as a smart practice to convert live broadcasts to VOD since you continue to profit from the information of your video feed.

The contrary is also often employed in online events. The viewer joins the stream at a predetermined time to see pre-recorded content and engage with it in real-time. This is how recorded keynote speeches and event programs (VOD) are frequently presented.

How Does VOD Function?

Generally speaking, on-demand video access operates as follows:

Your video asset must first be compressed in order to allow for the transfer of movie file sizes over the internet. Applying compression methods like interframe compression, image scaling, and/or chroma subsampling can achieve this.

The same idea underlies each of these methods: getting rid of any unnecessary motion, resolution, or colour data from the video file. Before being saved on the databases of the video on demand platform, your video asset will be encoded or characterized into a format that can be seen by the video player.

The Various VOD Revenue Models

VOD can be used as a marketing or instructional tool to educate and engage stakeholders such as clients, staff members, or other parties. In these circumstances, VOD video is typically not released for financial gain. However, your revenue strategy can also include using video on demand.

The AVOD, SVOD, and TVOD monetization strategies can all be used to make money from video content.

Ad-based Video On Demand (AVOD)

Ads that are inserted into the video are how AVOD makes money. To get as many views on the material and advertisements as possible, the video is made publicly available to the consumer. The AVOD income model is used by some of the biggest online video platforms, such as YouTube, Dailymotion, Facebook Watch, and Twitch.

Ads are typically broadcast in videos as pre-roll (seen before the video), mid-roll (ads interrupt the movie), or post-roll (ads follow the video) . They may be skippable right away, skippable after a brief delay, or neither.

SVOD or Video on-demand services that need a Subscription, such as Netflix, Hulu, and Disney

The most common business model for VOD providers at the moment is SVOD. Customers use this model to access the provider’s video content by paying a monthly or annual subscription fee.

By giving its customers the option to upgrade, Netflix has diversified its income stream. Additional options and features are unlocked with each membership tier (basic, standard, premium).


Transactional VOD – Examples include Google Play, Apple iTunes, and Amazon Prime Video

It enables users to pay for the specific videos they want to see. (in contrast to SVOD, which allows users free access to all of the provider’s programming for around a month). Consider it to be a digital video rental shop. SVOD is another name for pay-per-view (PPV).

TVOD can be divided into two types of purchases for the customer: download to own (DTO) and download to rent (DTR) (DTO). While the second option saves the bought video file to the user’s hard disc, the first option allows the user to watch the video as if they would on Youtube or Netflix.

Hybrid VOD business plan (Freemium VOD)

Examples: Vimeo and YouTube Premium (Plus, Pro, Business, Premium)

Ads can be fully removed from sites like YouTube and Vimeo content by switching from a free AVOD-based subscription to a premium subscription (SVOD). By upgrading, you can also have access to premium content and other features like background play and downloadable stuff.

Of course, a hybrid business model might potentially mix TVOD and SVOD or AVOD and TVOD. Customers can mix and match revenue models on the higher-quality Video On Demand channels. Thus, companies can design a customized VOD product that will differentiate them from their competitors.

The capacity to consume video content without being constrained by a programming schedule is nothing short of revolutionary, but it swiftly became the new standard of behaviour. It completely changed how media was consumed and sparked the legendary streaming wars. VOD business is still developing. To the advantage of both customers and industry players, tech companies are always looking for methods to improve video encoding technologies, monetization strategies, bandwidth, and hardware.

However, that does not imply that you should do nothing while the technology is still developing. Video on demand (VOD) is very popular, and any company can use it as a strong growth tool.

I hope that this post has given you a clearer understanding of what is required to launch a fruitful video approach that will aid your company.

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