YouTube is one of the leading video streaming services

Consumers are hooked to the idea of watching video content from anywhere, at any time and on any device. The VOD streaming service has changed the way the audience consumes videos, and the trend is here to stay! Not just content creators but even broadcasters, educational institutes, and more are choosing video-on-demand streaming for a wider audience than traditional TV.  

According to a survey, about 62% of US users access YouTube daily. YouTube is one of the leading video streaming services with a wide array of user-generated content from informative, educational to pure entertainment-based videos. Another leading video-on-demand platform, Netflix, has over 168.9 million viewers in the US alone. The VOD industry is booming with more platforms being launched along with the increase in revenue. 

What is VOD Streaming?

As the name suggests, a customer can stream videos from anywhere, anytime, and based on what they wish to watch. Unlike traditional TV, where the content was consumed on broadcasters’ schedules, this VOD streaming method gives complete control to the customer. 

This can be internet-based streaming or downloading files or saved to flash drives. However, the service has become popular with internet-based devices as it gives the liberty to stream the videos from anywhere if there is a working internet connection. For example, Netflix, YouTube, Hulu, Amazon Prime, and more.

VOD vs Live Streaming vs OTT Streaming

VOD streaming: VOD refers to video content that can be streamed on-demand when a user chooses. This includes video content that can be streamed online, downloaded, and stored in drives. 

Live streaming: Live streaming is a service that is broadcasted live. It is not on-demand but relays at the same time as the event, game or when a show is going on.

OTT streaming: Although used interchangeably with VOD streaming, OTT exclusively refers to video streaming with the use of the internet. OTT can be live streaming, non-video content as well. 

Benefits of VOD Streaming

VOD streaming platforms are seeing a high user penetration. Many consumers are opting for subscriptions or using video streaming platforms like Facebook, Tiktok, Instagram and others to watch videos. Especially with the pandemic situation, this service saw an increase in viewers. 

By giving users control over what they watch, many users find it beneficial to what is live stream? Have more than one video streaming app on their phone. That gives them more options to choose from and switch to, based on their mood.

It also gives content creators an alternate avenue to monetize their content and earn higher revenue. They can simply hire a VOD platform provider to build a video-on-demand solution and stream their content through it. 

Monetization Models for VOD Streaming

VOD streaming gives content creators an opportunity to earn higher revenue by owning their own platform. Some of the popular methods of monetizing VOD platforms are:

SVOD (Subscription Video on Demand)

This monetization model allows access to content for its users for a regular fee. It can be charged weekly, monthly, annually, or for any specific period. Paying a subscription gives access to the complete library of videos that the user can watch anytime during the subscription term. This is a popular method of monetization as it guarantees regular revenue.

AVOD (Ad-Based Video on Demand)

OTT streaming services like YouTube is one of the popular examples of ad-based VOD. They allow free streaming, but advertisements which are put across are shared with a revenue commission. Therefore, now you needn’t depend on third-party VOD platform providers like YouTube to earn your main source of ad revenue, and it can be earned directly via your self-hosted VOD platform. You can also learn more about what is avod & svod.

TVOD (Transaction Video on Demand)

TVOD monetizes based on the pay-per-view model. These are popular for one-time watch shows, educational courses, and other video content that usually doesn’t have viewers watching the content on repeat. You can see this type of monetization in highly anticipated shows, movies, and other videos. 

Conclusion

VOD is gaining popularity amongst the audience and many users are opting for OTT streaming services rather than watching traditional TV. Thus, this is a very profitable venture that many content creators are investing in for a higher ROI. Choose the right solutions provider to build the right VOD platform for your business to attract loyal customers.

By Anurag Rathod

Anurag Rathod is an Editor of Appclonescript.com, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.