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What Is VOD Streaming?

allrites explains VOD Streaming

What is Video on Demand (VOD)?

Video on Demand (VOD) is a digital distribution method that lets viewers watch movies, TV shows, and various other types of video content via the internet whenever it suits them best. Whether on a tablet, computer, TV, or mobile phone—the latter being the most popular device—VOD services offer a huge library of content that users can access on demand.

How popular is VOD Streaming?

Though VOD streaming has been around for only about 30 years, it's become a massive industry, valued at US$182.40 billion. It’s projected to reach 3.4 billion users by 2027—that’s a third of the world’s population! Over recent years, and especially during the COVID-19 pandemic, VOD services have surged in popularity. In some countries, like the US, VOD has even surpassed traditional viewing methods such as cable and linear TV as the preferred way to enjoy Film and TV content. This trend is particularly strong among younger audiences, with 90% of those aged 18 to 24 favoring VOD.

The Wide World of VOD Platforms

It's tough to pin down just how many VOD platforms there are worldwide because the market is always growing and changing, but it's safe to say there are hundreds of them. These range from big names that reach across the globe to smaller, niche services that focus on particular local tastes. Many of these platforms are supported by big parent companies, which helps them spread their wings even further.

Global giants like Netflix, Amazon Prime Video, and Disney+ are available in countless countries, making sure that whether you live in a busy U.S. city or a quiet village in Europe, you can access a huge variety of shows and movies. What makes these services really stand out is how they cater to everyone, offering a mix of content that appeals to different cultures, languages, and preferences around the world.

Then there are the regional VOD services, which are all about matching local tastes and cultural vibes. For example, Stan in Australia mixes local shows with international hits to strike the right balance for Aussie viewers. Over in India, Hotstar (now Disney+ Hotstar) brings a mix of local Bollywood favourites and international blockbusters, hitting the mark for a wide range of Indian viewers.

VOD Monetization Options

There are a few ways VOD companies can make money from their services, and they've got some pretty straightforward names: AVOD, SVOD, PVOD, and TVOD are the main ones. Nowadays, many VOD platforms offer a mix of these options, which is great for both the viewers and the platforms.

SVOD: Subscription Video on Demand

This is what Netflix, Disney+, and Amazon Prime Video use. You pay a monthly or yearly fee and get unlimited access to a library of content. It’s straightforward and the most popular option worldwide because you can binge-watch as much as you want without any ads.

AVOD: Advertising-Based Video on Demand

AVOD is a cheaper or a free version of SVOD, because they come with ads before, during or/and after a Film or TV episode. AVOD allows the platform to earn money from an advertiser and a brand rather than the viewer. This setup is perfect for viewers who don’t mind sitting through some commercials to get free content.

PVOD: Premium Video on Demand

PVOD is a bit like renting a movie ahead of official SVOD or AVOD release. When a new movie comes out, you can pay to watch it at home instead of going to the cinema. It’s great for getting the latest releases without leaving your couch.

One of the examples of PVOD-released film "Trolls World Tour." This animated film from Universal Pictures was one of the first major films to forgo a traditional theatrical release due to the COVID-19 pandemic and instead premiered directly on various PVOD platforms in April 2020. Viewers could rent the movie at home for a 48-hour period, a move that proved to be financially successful.

TVOD: Transactional Video on Demand

TVOD lets you pay for titles you watch without a monthly or yearly subscription. Think of it like an online rental store - you pick a movie or a TV show, pay a one-time fee, and watch it. Apple iTunes and Google Play Movies work this way. It’s perfect if you only want to watch something occasionally and don’t need a whole subscription.

VOD platforms often combine these methods. For example, you might have a subscription service (SVOD) that offers some movies as premium rentals (PVOD). This flexibility lets viewers choose how they want to access content and allows platforms to maximize their earnings from different types of content and viewer preferences.

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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