What is VOD streaming? Why is it important?

Video streaming has garnered humongous attraction in the past few years and with the internet becoming more and more accessible in remote areas around the world, the tangent is set to rise. One term that has also become highly popular among the parties offering and looking for streaming services is “VOD”. Video on demand (VOD) is what most people think of when they hear the word “streaming” thanks to these streaming behemoths. However, not all online video content falls into the category of VOD streaming.

What is Video on Demand?

VOD stands for “video on demand,” and it is a subscription-based, rental-based, and/or purchase-based method of consuming video. Unlike traditional television, which required viewers to watch content on a set schedule, VOD allows people to watch videos on their own time and their platform. As a result, VOD is becoming increasingly popular. By 2023, the number of internet-connected devices will have tripled, and demand for content will have doubled. Content can be easily distributed with over-the-top (OTT) video, which is the next generation of digital streaming. Traditional cable and satellite television viewers can cut the cord with OTT because it allows them to stream content directly online, on any device. The possibilities for monetizing VOD are endless due to its accessibility.

Video on Demand is used by almost all of today’s most popular streaming services. Netflix, Disney+, Hulu, HBO Max, and a slew of other streaming services are among them. Video on Demand refers to any video library that allows users to choose which show or movie they want to watch. The majority of VOD services are also OTT (meaning over-the-top). OTT stands for over-the-top (OTT), which refers to video streaming over the internet rather than cable, satellite, or other media. VOD and OTT are sometimes used interchangeably, but they are not the same thing. Some OTT networks, such as PlutoTV and Tubi, which we previously mentioned, are linear. Some VOD networks, such as cable On Demand libraries, are not OTT.

What is Video on Demand?

When it comes to a VOD business, choosing the right monetization model is especially important – and it’s not an easy task. Platforms generally face the dilemma of deciding on how to charge their audience. The reason it’s so difficult to decide is that, unlike with physical products, and online video business doesn’t follow the “cost-plus pricing model.” There are different pros and cons for every model based on the advertisement, scalability, revenue, and many others. A dedicated audience can be turned into a profitable VOD business by any video content creator. Here are the three most common ways to monetize your videos to get you started:

Subscription Video on Demand (SVOD)

When it comes to a VOD business, choosing the right monetization model is especially important – and it’s not an easy task. Platforms generally face the dilemma of deciding on how to charge their audience. The reason it’s so difficult to decide is that, unlike with physical products, and online video business doesn’t follow the “cost-plus pricing model.” There are different pros and cons for every model based on the advertisement, scalability, revenue, and many others. A dedicated audience can be turned into a profitable VOD business by any video content creator. Here are the three most common ways to monetize your videos to get you started:

Advertisement Video on Demand (AVOD)

For viewers who do not want to pay a monthly subscription fee, ad-based video on demand (AVOD) streams a variety of content. Simultaneously, AVOD provides advertisers with opportunities to reach streaming audiences. AVOD, unlike SVOD, does not always broadcast original or new programming. Hulu’s programming, for example, consisted of recent television episodes from partners NBC and Disney before it began offering original content. Hulu is an example of a tiered AVOD service, in which users can choose between free AVOD content with ads and paid SVOD content without ads. Sponsored content, display banners, video ads, and other streaming ad innovations, such as pause and binge ads, are among the advertising strategies and formats used by AVOD. Streaming platforms and advertisers are increasingly making advertising appealing to consumers. Streaming platforms, viewers, and advertisers all benefit from entertaining ads within streaming content, as these ads are often more likely to be watched than content that feels disruptive. Advertisers who want to capitalize on consumer awareness and adoption of AVOD must effectively leverage data, consumer preferences, and viewing habits to target and engage consumers across AVOD services.

Transactional Video on Demand (TVOD)

Viewers buy lifetime (or occasionally temporary) access to a TV show or film in the Transactional Video on Demand model. Monthly subscription prices for SVOD services are often comparable to per-title prices for titles sold via the TVOD model. The viewer purchases a license for the content in the TVOD model, which may be for a set time or for all time (or at least until the streaming service from which they have purchased is in existence). The TVOD model generates more revenue per viewer and is a more appealing option for unique content with a niche or guaranteed audience. The TVOD model is frequently packaged as Electronic Sell-through by services like iTunes, which allows licensed content to be downloaded, or Pay-Per-View for live streaming popular sports content. Transactional Video On Demand can be used as part of a windowing strategy by distributors looking to monetize entertainment content. When a film’s release window has passed but it is still in the public consciousness, the distributors can choose to sell it via TVOD. This model would be similar to the release of a DVD after a film’s initial theatrical release. Movie studios are increasingly attempting to maximize revenue from the TVOD business model as DVD revenues continue to decline.

Video and demand have brought in a revolution in the digital streaming space and have been continuously capturing the TV market. It has become an essential part of digital space and offers a variety of benefits. Let’s look at the reasons why VoD model is being adapted so first 

Wide variety of Options

VOD service providers offer a wide range of television shows and movies, allowing you to access hundreds of thousands of titles, including news, sports, classic TV, entire TV series, and films from different decades. Originally, video on demand only allowed you to watch movies, but newer technologies and high-speed broadband internet have allowed you to access a wider range of content, including the ability to watch content from other countries and other special interest content. As a result, video on demand is extremely popular.

Cost effective option

Cable costs an average of $217 per month, or more than $2600 per year! It also comes with a slew of additional costs, such as equipment rental. While VOD is very economical in nature. Viewers are no longer required to pay for costly cable bundles that include a plethora of shows they do not want. Instead, they can pay a lower monthly fee for subscription plans that they actually want.

Highly Convenient

Currently, VOD is provided by streaming service providers such as Netflix and Amazon Prime, which allow you to choose from a catalogue of videos and watch them whenever, wherever, and as often as you want. In addition, unlike traditional TV providers who bind you to long-term contracts that are difficult to break, VOD streaming services have no such contractual obligations. As a result, you can cancel your subscription at any time by simply clicking a button. In a traditional TV model, you can only get a cable or satellite TV provider that is specific to your geographic location, which further limits your TV service provider options, whereas VOD allows you to stream videos regardless of where you live because all you have to do is log into your streaming service account to get instant access to a large number of videos. You are not tied to any provider for an extended period of time; you can subscribe to multiple providers at once or switch to anyone without incurring any costs or violating any regulations, whereas in traditional television, a viewer may only have one or two options depending on where they are.

Deep analysis and Targetted delivery

VOD content is almost always accessed from a personal device, which is one of the differences between traditional video consumption and VOD. As a service provider, this means you’ll have access to massive amounts of data about your users. This allows for more accurate audience segmentation, targeting, and delivery of content. You can fine-tune your VOD model for delivering tailored content to viewers using detailed data about how customers interact with your content and demographic data points.

Although video on demand is not a new concept, its widespread availability thanks to modern internet technology is unquestionably revolutionary. The ability to consume video content whenever you want has forever changed the content landscape. It’s no surprise that businesses are scrambling to capitalise on it. VOD, on the other hand, is still evolving, and no one knows where it will lead. The race for VOD supremacy is heating up, thanks to increased personalization and tailor-made content.

Mogi’s Proprietary Video Tech

Mogi’s Video Tech solutions are available end-to-end (Video Transcoding + Video Player + Mogi Streaming Engine (Multi-CDN delivery) + DRM + Video Analytics) or you can use individual products from the entire suite like just the Video Transcoding. Mogi also provides white-label end-to-end plug n play solutions for OTT and Edtech Platforms, with Web, Android and iOS apps as well as a dedicated CMS for OTT and LMS for EdTech.

One of the best individual products we have is our Transcoding Architecture, which is a unique cluster-based process, does the transcoding within 30% of the content length. The transcoding architecture’s result includes a highly compressed video of up to 50% with no loss in quality, and if you choose quality enhancement, a 40% compression with the enhanced video quality.

The pricing for Transcoding is very competitive as well, and along with it you get a highly compressed output with the same or higher quality. This means not only is your contractual pricing is low due to competitive pricing, but your bandwidth consumption also reduces, and user experiences increase multifold. It’s a win-win for all of us (Users, Clients, Mogi).

Contact us now to make your website load faster, rank Higher on SEO, and reduce bounce rates – susheel.srinivas@mogiio.com

Although video on demand is not a new concept, its widespread availability thanks to modern internet technology is unquestionably revolutionary. The ability to consume video content whenever you want has forever changed the content landscape. It’s no surprise that businesses are scrambling to capitalise on it. VOD, on the other hand, is still evolving, and no one knows where it will lead. The race for VOD supremacy is heating up, thanks to increased personalization and tailor-made content.

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