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What is TVOD Streaming?

What is a TVOD?

What is TVOD?

Transactional Video on Demand (TVOD) is a dynamic model of film and TV content distribution that stands out in the crowded streaming landscape. Unlike its SVOD (Subscription Video on Demand) counterparts, TVOD allows users to pay for each piece of content individually. This model is akin to a digital rental service or a purchase platform, where you only pay for what you watch, when you choose to watch it. Let's delve deeper into the world of TVOD, its significance in the industry, and its appeal to diverse consumer bases.

How Does TVOD Work?

TVOD services operate on a pay-per-view basis. Consumers directly purchase or rent movies, television episodes, or entire series for a limited period. This approach contrasts with subscription services, where users pay a recurring fee for access to a broader library of content. TVOD platforms often feature the newest releases, making them available for viewing immediately after or sometimes even before their standard release dates.

How Popular is TVOD Worldwide?

The popularity of TVOD is on a steady annual rise; however, it represents one of the smaller segments within the VOD family, which includes SVOD, AVOD, FAST, and downloads. In 2024, TVOD accounted for only about 6% of the global VOD revenue, amounting to US$10.93 billion.

In the broader VOD market, the United States is the largest consumer of the TVOD monetization model, making up 21% of its market share. It is followed by the UK, Japan, Germany, and China, which also show significant engagement with TVOD services.

Content Successful Films on TVOD

The TVOD model provides films with a flexible and direct revenue stream, which can be particularly advantageous during times when traditional theatrical releases are not viable. For example, Universal Pictures' Trolls World Tour bypassed cinemas during the COVID-19 lockdowns in 2020 and debuted on TVOD, generating nearly $100 million in its first few weeks—surpassing its predecessor’s theatrical earnings. The success of Trolls World Tour likely influenced Universal's decision to release The King of Staten Island via the same model, allowing for highly targeted marketing and distribution strategies that provided the studio with direct control over the film’s promotion and viewer reach.

Similarly, Disney's Mulan leveraged the TVOD approach, specifically through a Premium Transactional Video on Demand (PTVOD) model via Disney+ Premier Access. This method allowed viewers to watch the new release from the comfort of their homes by paying a premium fee. Opting for TVOD not only met the audience's demand for convenience but also significantly boosted engagement with Disney’s streaming service, demonstrating the model's effectiveness in maintaining consumer interest and participation.

TVOD Providers and the Synergy of Mixed Models

As of 2024, several key players continue to drive the TVOD model, offering consumers the ability to rent or purchase digital content directly. Leading services like Apple iTunes, Google Play Movies, and Amazon Video remain at the forefront, providing a vast array of titles from new releases to classic films available for individual purchase or rental.

In addition to standalone TVOD services, there is a growing trend of streamers adopting a mixed model approach, combining SVOD (Subscription Video on Demand), AVOD (Advertising-Based Video on Demand), and TVOD under one platform. This synergy allows services to cater to diverse consumer preferences and enhances user engagement. For instance, Amazon Prime Video effectively integrates these models by offering an SVOD base service supplemented by options to buy or rent newer titles through TVOD and access free content with ads via AVOD. This mixed approach not only broadens the appeal of the platform but also maximizes revenue streams by providing multiple ways for users to engage with content.

About allrites

allrites is a premier marketplace for buying and selling film and TV rights. We provide a vast catalog of Film and TV content, from major studios to independent producers, available in any language and genre. Our innovative licensing models, including allrites Content-as-a-Service, offer flexible and efficient solutions for content monetization and acquisition, accommodating the evolving needs of content buyers and sellers worldwide.

Contact us to learn more about us and our revolutionary CaaS model.


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