What is VOD? Definition and Examples

Video-on-demand (VOD) streaming is a media service that makes content easily and instantly accessible. In a world where the internet rules everything, viewers prefer watching TV and movies on their own schedule. Not all platforms offer the option—that’s where VOD bridges the gap.

Whether you’re a content maker, broadcaster, or business owner, setting up VOD can boost your business and status. Viewers no longer need to watch at specific times or wait to catch up; your platform allows them to enjoy content in their own time.

VOD streaming services provide a universal approach to reaching out to your audience. You attract viewers by offering a variety of content, instantly accessible at the click of a button.

As an OTT solutions provider, inoRain provides the necessary tools to deliver high-quality on-demand videos to audiences. We help you gain an advantage in the competitive industry and become successful, like Netflix and other streaming giants.

Ready to embrace the world of video on demand and learn how it can help you take your content to the next level? Keep reading as we explore the VOD streaming meaning, how it works, the different types, features, benefits, and future trends.

Key Takeaways

• VOD streaming allows viewers to watch pre-recorded content anytime, whereas live streaming provides real-time viewing of events as they happen.
• VOD includes different models: Subscription-based (SVOD), transactional (TVOD), ad-supported (AVOD), and hybrid, each offering unique viewer experiences.
• VOD platforms utilize servers and Content Delivery Networks (CDNs) to quickly and efficiently distribute video content globally, providing easy access on various devices.
• VOD platforms can generate revenue through subscription fees, pay-per-view transactions, or advertising, making it a flexible business model.
• VOD offers convenience, a wide range of content, and accessibility across multiple devices.

Understanding VOD Streaming

What does VOD stand for? It means “video on demand,” which allows users to pick and view movies whenever and wherever they want. Conventional broadcasting schedules show movies ahead of time, and viewers must watch them as they air. VOD, on the other hand, provides instant access to a vast array of video libraries with films, instructional videos, music, and other forms of video content.

VOD lets viewers enjoy content on any gadget that connects to the Internet. This means they can watch movies and TV at home, at work, or on vacation.

What distinguishes VOD from live streaming?

Live streaming streams events so audiences can watch them as they happen. Even if they're not there in person, live streaming creates an immersive experience that makes viewers feel like they’re part of the event. They can also share their opinions with friends and interact on social media while they’re watching.

Conversely, VOD streaming lets people watch previously recorded content at any time. Viewing it at your own pace allows you to fit it easily into your calendar. You can watch from a phone, tablet, computer, TV, or another device that connects to the internet.

VOD movies are available for viewing anytime. Users may stop, rewind, and fast-forward previously unavailable supplementary content. It’s beneficial for those who are on the go constantly and may not be able to watch movies or series at scheduled times.

Types of VOD Services

Various VOD streaming services exist, each catering to specific needs and desires. They all offer unique benefits, but one might suit your business goals more than another. You can also host a hybrid option that provides the best of each and satisfies a wider audience.

Below are four video-on-demand examples currently available.

Subscription Video on Demand (SVOD)

Subscription-based video on demand gives users access to varied content libraries based on a membership. SVOD platforms typically operate on a monthly or yearly basis.

Service payers can view as many movies, TV shows, specials, and other shows as they want. Popular examples of SVOD include Netflix, Hulu, Disney+, and HBO Max. These platforms feature content that differs from each other, drawing subscribers in with exclusive titles.

Transactional Video on Demand (TVOD)

TVOD, or transactional video on demand, lets users rent or buy videos depending on their needs. Usually, within 24 to 48 hours, users can decide to pay for content that they can keep forever or for a specific amount of time. Apple iTunes and Amazon Prime Video are two well-known services that allow users to watch videos whenever they want.

Ad-Supported Video on Demand (AVOD)

AVOD platforms offer videos on the internet where ads pop up across the site and while the media plays. Users don’t have to pay for the content. Although it’s free to watch, advertisements may occasionally limit people’s access. For instance, even though YouTube features various types of videos, some could have background ads running across them.

Hybrid Models

Many video-on-demand platforms seamlessly combine several elements, creating hybrid models. For example, Hulu lets users select their preferred membership by offering paid subscriptions or free options with advertisements.

How VOD Streaming Works

VOD streaming makes it simpler to watch movies and series instantly, so users can enjoy content whenever they want without following a rigid schedule. It uses servers that connect over the internet to host and download video files. The server transmits the chosen content instantly to the user’s device as soon as they select it.

A VOD streaming server consumes bandwidth and uses up data to transmit media. Content delivery networks (CDNs) make hosting and delivering content effortless. They enhance the streaming speed by distributing data among several servers to ensure fast delivery.

Since content may be limited depending on location, traditional media platforms like satellite or cable TV aren’t as popular as VOD streaming services. The latter catches users’ attention since they can view readily available content.

With VOD live streaming, viewers can also enjoy a wide range of content whenever they want, anywhere they are, and at whatever time suits them best. This function adds to VOD’s attraction, as many people aren’t able to attend or watch live events as they happen.

Benefits of VOD Streaming

For both consumers and video-on-demand service providers, this form of streaming is superior to more conventional options—in various ways. Let’s explore four of the top benefits.

Convenience

VOD gives users access to many different shows and films anytime they like. It adds convenience for those with a busy schedule who are on the go. Viewers can use their accounts to log in and access content quickly at the tap of a button.

Wide Range of Content

Viewers can find a wide range of content on a VOD streaming platform, like movies, TV shows, documentaries, and instructional videos. This variety allows platform owners to accommodate varying tastes and interests, appealing to different individuals.

Accessibility Made Easy

Content is easy to access with VOD streaming, meaning your audience can enjoy entertainment wherever they are. They can do it at home, on the road, or even during a long trip.

Users can enjoy series and movies on different devices, like computers, cellphones, tablets, and smart TVs. The content is available instantly as long as they’re connected to the internet.

Unique Watching Experiences

Many VOD streaming companies now have complex video recommendation systems driven by artificial intelligence and machine learning. Suggestions for content depend on past likes, ratings, and the viewing experience of the watcher.

You’ve likely seen and enjoyed this feature on Netflix or YouTube. The system shows consumers interesting and valuable content tailored for them, providing a seamless and personalized experience.

Key Features of VOD Platforms

What is VOD useful for? Below are four of the most crucial features of a platform offering video on demand. You can implement them to ensure a successful and problem-free experience for you and your users.

Video Hosting

A flawless VOD platform should host videos on the cloud with strong, stable software. Along with making your network secure, it simplifies the setup and administration of your streaming service.

Encoding and Transcoding

The device or platform you use for VOD streaming software may affect the size and quality of a media file. For example, a movie designed on a phone might not look great on a computer or TV.

As long as you apply the correct encoder and transcoder settings, you can broadcast content to different devices. Achieve this by ensuring the media files perform best with the data rates and storage capacities of each device.

CDN Delivery

Connecting to a cloud content delivery network helps speed media playback on your VOD streaming platform. It also boosts the number of channels your system can broadcast. Test and ensure your streaming infrastructure is safe while housed on the cloud.

Video Security

Excellent security systems must be in place to guard against assaults or illegal leaks. They also ensure users can watch their content without difficulties. Video security covers Digital Rights Management (DRM) unique to the platform, HTTP Live Streaming (HLS) encryption, and Single Sign-on (SSO). These functions let you prioritize security and prevent viruses and hackers.

Security is crucial for any VOD streaming app. Ensure it has features that protect user data and payment information. End-to-end encryption and multi-factor authentication also help prevent unauthorized access and keep your subscribers safe.

Monetization with VOD Services

Subscription-based video on demand (SVOD) can be a profitable approach to generate a consistent income from your platform. It’s a viable business opportunity if you have desirable content for ready-to-pay customers.

SVOD allows you to provide several access choices (or subscription tiers) at varying prices. You can present VOD streaming content to a wider audience if you offer different options. For example, a basic plan may provide access to half your catalog, while a premium subscription lets users watch everything on your platform.

Transactional video on demand (TVOD) allows viewers to pay per view, either renting or buying content. Two basic options fall under the TVOD model. Like DVDs, the first option allows customers to purchase once-off access to content they can watch as many times as they want. The second option lets individuals rent a movie or TV episode at a lower price than buying it.

The ad-sponsored video on demand (AVOD) model is another profitable approach for your streaming platform. AVOD differs from SVOD and TVOD in that it solely generates income from advertisements—not from users paying to view your content. Visitors to your site pay nothing at all. These kinds of websites usually attract large numbers of users because they’re free.

Challenges in VOD Streaming

VOD streaming is a challenge when dealing with content licensing. Making licensing deals for content requires thorough talks with producers, content owners, and manufacturing companies. To create a media library appealing to a broad spectrum of viewers, VOD businesses must negotiate licensing terms, regional constraints, and costs.

Maintaining people’s interest is crucial in the VOD sector, as platforms are competing for viewers’ attention in an already-saturated industry. Although consumers have countless options, VOD companies rely on their ability to consistently produce or offer new content to attract and keep viewers.

This brings us to another challenge: Finding and proposing content. Your platform’s success rests on the ability to suggest pertinent and fascinating content to your customers amid large-scale libraries. More options mean happier customers.

Robust recommendation systems allow users to easily discover content suited to their preferences. With these kinds of algorithms, VOD streaming platforms can offer media that caters to viewers’ specific tastes, watching history, and demographic data.

For many video-on-demand companies, crimes against intellectual property are a major issue. VOD streaming software must prioritize intellectual property protection and safeguards against content theft. Fortunately, there are several powerful ways to keep your platform and users safe, including Digital Rights Management (DRM), Anti-Piracy Software, User Authentication, and License Agreements.

Future Trends in VOD Streaming

VOD streaming is a valuable tool that helps media companies improve their operations and reach more customers. Grand View’s report on the video streaming market indicates it’ll grow by 21.5% annually between 2024 and 2030.

Thanks to swift developments in smart technology, blockchain technology, and the increase in smartphone and high-speed internet usage, the sector is predicted to reach $223.98 billion by 2028. It’s abundantly evident, particularly in North America, that VOD development has accelerated globally. Video streaming is also expanding faster in many Asian countries.

Leveraging inoRain for VOD Solutions

As an industry leader, inoRain provides customized end-to-end OTT/IPTV/VOD solutions for content owners, ISPs, telecoms, and mobile operators. inoRain’s software solutions can transform your business into a VOD streaming platform that offers SVOD, TVOD, and AVOD.

If you need support delivering safe and high-quality content via your VOD platform, inoRain is here to help. Over fifty companies worldwide have chosen our platform to increase their exposure, boost their revenue, and drive their success.

Our proprietary OTT platform offerings provide various specialized features and white-label, cost-effective solutions to fit your company’s specific requirements. With inoRain, you can easily manage all your streaming platforms from a single, user-friendly dashboard.

Partner with inoRain for various VOD streaming solutions to help your business develop and expand.

Conclusion

VOD streaming is a flexible, convenient, and accessible way to consume content. Whether you’re a viewer or a business, it provides excellent benefits, like convenience, instant viewing, and reaching a wide audience. From subscription-based services to ad-supported models, the choices are vast and adaptable to different needs.

Setting up a VOD platform opens up new revenue opportunities for your business. With multiple monetization options and the growing desire for on-demand content, the potential is massive. Just be sure to prioritize security and licensing to protect your content and provide a seamless experience for users.

Ready to enhance your VOD streaming capabilities? Let inoRain help you elevate your business with cutting-edge solutions tailored to your needs. Get started today and see how our platform can boost your reach and drive your revenue.

FAQs

How does a video-on-demand (VOD) service work?

A VOD service lets users stream or download video content whenever they want, without following a broadcast schedule. They can access a library of movies, shows, or other content instantly with an internet connection.

Is Netflix streaming or VOD?

Netflix and other streaming services, like Hulu, Amazon Prime, HBO Max, and Disney+, are VOD. They make their content available instantly through online video hosting and delivery.

What’s the difference between VOD and live streaming?

VOD lets users watch pre-recorded content at their convenience, while live streaming delivers content in real-time as it's happening. VOD streaming gives viewers full control over when to start, pause, or stop the content.

How do I watch VOD streaming?

To watch VOD streaming, sign up for a service, log onto the platform, and browse available content. Then, select a video to stream instantly on your device with an internet connection.