Glossary term

TVOD (Transactional Video on Demand)

TVOD Meaning

TVOD is a video-on-demand model where users pay for individual content—like a single movie or episode—either to rent for a limited time or to own permanently. It's a one-time payment system with no subscription involved.

Key Features of TVOD

• Pay-per-view: Users pay only for what they want to watch
• No subscription required
• Often used for new releases, premium titles, or niche content
• Content can usually be accessed for a set rental period or kept permanently if purchased
• Available across multiple devices, including smart TVs, smartphones, and tablets

TVOD in the VOD Ecosystem

Video on Demand (VOD) platforms give viewers the flexibility to watch content whenever they choose, breaking away from traditional broadcast schedules. Within this ecosystem, three primary revenue models exist:

AVOD (Ad-Supported Video on Demand): Offers free access to video content, supported by ads that appear before, during, or after playback.

SVOD (Subscription Video on Demand): Provides full access to a content library in exchange for a recurring subscription fee.

TVOD (Transactional Video on Demand): Allows users to pay per title, either renting or buying the content on demand.

AVOD vs SVOD vs TVOD

User's Perspective

Aspect	AVOD	SVOD	TVOD
Access	Free with ads	Full library access with subscription	Pay-per-title access
Ad Experience	Ads shown before/during/after playback	Typically ad-free; some hybrid tiers	No ads
Cost	No cost to view	Recurring payments (monthly/yearly)	One-time fee per rental or purchase
Content Range	Often large, ad-friendly libraries	Extensive content, including originals	Premium, new-release, or niche titles
Control	Moderate—ads interrupt playback	High—watch on your own schedule	High—choose exactly what to pay for

Content Provider's Perspective

Aspect	AVOD	SVOD	TVOD
Revenue Model	Earnings through ad impressions and CPM	Predictable income via recurring subscriptions	One-time transactions (rental or purchase fees)
Monetization Speed	Fast—ad revenue scales with viewership	Steady growth over time	Immediate revenue per transaction
Audience Reach	Broad—low entry barrier attracts a large base	Limited to paying subscribers	Moderate—targeted to users willing to pay upfront
Content Strategy	Focus on quantity, broad appeal, and ad-friendly	Invest in exclusives and user retention	Highlight high-value or exclusive titles
User Data Access	Strong ad-targeting data (less user-specific)	Deep behavioral insights from subscribers	Limited to purchase patterns and viewing habits
Churn Risk	Low—no subscription to cancel	High—users may cancel anytime	N/A—no long-term commitment
Marketing Focus	Increase views to boost ad revenue	Emphasize long-term value and loyalty	Promote individual releases aggressively