In 2019, Video on Demand or VOD market size went over 55 billion USD and is expected to grow above 15% in the time period between 2020 and 2026. Real-time streaming of video content which is high-quality by using smart TVs and smartphones is pushing the growth of the market. The growth in consumer spending and technological changes in the speed of the internet will affect the market growth.
The revenue in the VOD streaming platform sector is expected to reach the US $98686m in 2022. When comparing on a global scale, maximum revenue will be generated in the USA alone.
Video On Demand or VOD & What it is?
What is VOD? What is VOD meaning? Video-on-demand or VOD stands for the click-to-play video content which is accessed without the limits of a broadcasting schedule. Convenience is vital with VOD. Audiences can choose what they want to view, where they want to view it, and when.VOD streaming is not live and does not need an actual copy of the content being watched (such as Blu-ray Disks or DVDs).
In the present day, VOD is referred to the content that is distributed to audiences via streaming on internet-linked devices. Recorded DVR content and downloaded files also come in this category. Know the difference between VOD vs streaming.
Advantages of VOD
- With the help of keyword searches, consumers are able to search the video library and view their preferred content wherever and whenever they like, without being restricted to broadcast schedules.
- Videos are shared with preferred audiences and they can view them at any time as per their convenience.
- Consumers can search and reach a range of content topics. Results from searches carried out are generated in a matter of seconds with quick stream delivery.
Over The Top or OTT Streaming & What is?
What is OTT? What is OTT mean? OTT’s full form of which is broadcasting media content that is delivered and presented over the internet than conventional cable and satellite services. Some key players in the OTT space are Amazon Prime, Netflix, Hulu, Disney+, and Sling. VoIP services and internet radio services such as Whatsapp are also OTT VOD platforms as they go beyond traditional broadcasting options.
OTT – What are the Benefits?
- You will engage with a younger, richer, and bigger media-consuming audience population than you could via conventional programming. This audience wants to view your company’s commercials. OTT devices and solutions will send your company’s message to them.
- OTT streaming advertising offers more transparency when it comes to which section of the audience is viewing the content. Want to know what OTT stands for? You will know who is watching the content, together with collected data, and will also know what is being watched. This gives you the flexibility to do ad-targeting specifically to get the maximum rates of return.
Monetization Models – Types
Whether you are releasing a movie to consumers or redistributing an archived event, many strategies can be utilized to enhance revenue using VOD. Let’s review the most common models video on demand presents for converting content to money.
SVOD or Subscription Video On Demand
Subscription video on demand is any VOD service that offers unlimited access for a charge which is recurring. Consumers choose to pay for video content that is subscription-based owing to the quality of content that services deliver, lack of commercial disruptions, and the ability to view programming without a schedule.
AVOD or Ad-based Video on Demand
AVOD is simply put, ad-based video on demand which appears like conventional TV broadcasting and makes use of commercials and other advertising methods to generate revenue. Unlike regular TV, where the ads and content are presented together, web streaming opens chances for user-centric advertisements on the basis of the demographics of the consumer or viewer.
TVOD or Transaction Video on Demand
This describes pay-per-view content that is streamed which consumers can access on an ad-hoc basis. A huge percentage of direct-to-VOD picture releases made headlines in the last few years – which could be accessed behind a paywall as a one-time-only purchase.
PVOD or Premium Video on Demand
Premium Video on Demand or PVOD includes highly awaited cinematic releases and boxing events or fights. The PVOD business model lets viewers get early content access to the video prior to the theatrical release. Viewers only have to pay a premium fee and can view their preferred video on the streaming platforms.
OTT Vs. VOD – The Differences
Want to know OTT and VOD differences? Learn more about the difference between OTT and VOD below:
- Over the Top platform or OTT is referred to as a distribution business model via which the content is released over the internet while VOD refers to the consumption section of the video content
- Usually, a VOD service allows users to view any of the huge collections of videos whenever they like. An OTT platform allows users access to video and audio content such as podcasts – Apple Music, Spotify, etc.
- Another important difference between VOD and OTT is the method of data transmission. Data transmission for OTT is restricted to the internet, but VOD can deliver data via satellite and cable also.
- When talking of live streaming, OTTs deliver online content at the broadcast time but the content cannot be viewed once the live streaming is complete, but VODs let viewers access the downloaded and pre-recorded content whenever and however they want.
- OTT platforms allow users to stream live content over the internet different from conventional TV services where satellites or cables are utilized. These are the differences between VOD vs OTT. It is good to know the differences between video on demand vs OTT.
VOD and OTT aren’t mutually exclusive and are used often for the flexibility they offer. The majority of top streaming services like Amazon Prime, Hulu, Netflix, etc. include OTT and VOD services. VOD and OTT are linked closely but there is a thin line between them which can change with the increased usage of the internet in place of cables and satellites.