What is VOD? Definition and Examples

Looking for a media service that is available anywhere and anytime? VOD ( Video-on-demand) is what you need! A media service that is a win for both the provider and the end-user.

With VOD, you can offer a wide variety of content, attracting a bigger audience. And the audience stays because they get full control over when and where they’ll watch the desired content.

This is just the surface of the benefits VOD offers. It starts with a good user experience and goes all the way to revenue-improving monetization options.

This article talks about everything you want to know about VOD. Let’s dive in!

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.

What is VOD Streaming?

Video-on-demand, or VOD, is a digital media distribution system that allows users to stream or download content anytime, anywhere, without following a fixed broadcast schedule.

Conventional broadcasting schedules video content 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 users can watch movies and TV using personal devices from anywhere and anytime..

What’s the difference between VOD and 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 a part of the event. Viewers can 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. Users can stop, rewind, and fast-forward previously unavailable 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.

How VOD Streaming Works

VOD 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) 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.

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.

Here is a table showing 4 VOD services:

VOD Service Type	Description	Examples	Revenue Model
SVOD (Subscription Video on Demand)	Users pay a recurring subscription fee for unlimited access to content.	Netflix, Disney+, Hulu (No Ads)	Monthly/annual subscription fees
TVOD (Transactional Video on Demand)	Users pay per movie or show they watch (rental or purchase).	Apple iTunes, Amazon Prime Video (rent/buy), Google Play Movies	Pay-per-view or one-time purchases
AVOD (Advertising Video on Demand)	Free access to content, supported by ads.	YouTube, Tubi, Pluto TV, Peacock (Free tier)	Ad revenue from advertisers
Hybrid (Combination of models)	A mix of SVOD, TVOD, and/or AVOD features.	Hulu (Ad-supported and No Ads tiers), Amazon Prime Video (Subscription + Rentals)	Combination of subscriptions, ads, and rentals/purchases

Key Features of VOD Platforms

Below are four of the most crucial features of a platform offering video on demand. You can implement them to ensure a smooth and enjoyable 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 up media playback on your VOD streaming platform. It also boosts the number of channels your system can broadcast.

Video Security

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.

Benefits of VOD Streaming

For both consumers and video-on-demand service providers, VOD streaming is beneficial in various ways. Here is a table showing the main advantages of VOD streaming:

Benefit	Description
Convenience and Accessibility	Watch anytime, anywhere, on multiple devices (TV, smartphone, tablet, laptop). No fixed broadcast schedule.
Wide Content Variety	Access to large libraries of movies, TV shows, documentaries, and exclusive originals across multiple genres.
Multiple Monetization Models	Includes SVOD (subscriptions), TVOD (pay-per-view), AVOD (ad-supported), and Hybrid models for flexibility.
Cost-Effective for Consumers	More affordable than traditional cable, with free (AVOD) or budget-friendly ad-supported plans.
Global Reach and Personalization	Available worldwide with multi-language support and AI-driven recommendations based on user preferences.
Offline Viewing and Multi-Device Support	Downloadable content for offline access and seamless viewing across different devices.
Content Control and Customization	Offers parental controls, personalized user profiles, and tailored content recommendations.

Monetization with VOD Services

Each VOD streaming service has something to offer based on its structure. Let’s go through each one.

SVOD

Subscription-based video-on-demand 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 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 of your catalog, while a premium subscription lets users watch everything on your platform.

TVOD

Transactional video on demand 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.

AVOD

The ad-sponsored video-on-demand model is another profitable approach for your streaming platform. AVOD solely generates income from advertisements, not from users paying to view 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

Despite all of the benefits VOD streaming has, there are a few challenges you might have to face:

Content Licensing Complexity: Negotiating licensing deals with producers, content owners, and manufacturers while managing regional restrictions and costs.

Viewer Retention and Competition: Standing out in a crowded market by consistently offering fresh, engaging content.

Content Discovery and Recommendation: Ensuring users find relevant content through robust recommendation algorithms.

Intellectual Property Protection: Combating content theft and piracy with DRM, anti-piracy software, user authentication, and licensing agreements.

All of these limitations can be handled with the correct planning and integrations.

inoRain’s VOD Solutions for Your Business

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 is a flexible streaming option that is beneficial for everyone from content creators to business owners. Setting up a VOD platform will open up new revenue opportunities for you.

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.

Wondering where to start from? Let inoRain help you out! Contact us today to get all the benefits a VOD platform can have.

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 on to the platform, and browse available content. Then, select a video to stream instantly on your device with an internet connection.