20 September, 2021

Premium Video on Demand: Everything You Need to Know

Introduction

When confined to their homes for months due to the COVID-19 pandemic, a major portion of the global population found their entertainment on the streaming videos online. A sudden surge in such interest led to the popularity of not just online platforms but also it facilitates with the Premium Video On Demand (PVOD) revenue model, which gives a paid privileged viewership system.

What is Premium Video On Demand and Its Business Model?

What is premium video on demand

PVOD- Premium Video On Demand is a business model of media distribution where access is provided for the streaming videos at an earlier stage than it would have been otherwise with any other type of video-on-demand. The premium video content viewership is based on the payment of a premium fee for the earlier access to the same content that  others would get access at a later stage. Although it was launched and tested a decade before it didn’t get the same popularity as it is getting since the pandemic. When the movies were stopped at theatres, this has been serving as its alternative to reach viewers. 

PVOD is not the only business model for video-on-demand content. There are Transactional Video On Demand (TVOD) as well as the Subscription Video On Demand – SVOD business models. The former provides access on a pay-per-video basis where users get either temporary or permanent access to the content depending upon the video on demand platform

The latter is a subscription model for a specified period of time with unlimited access to the video content. In addition, this subscription format has different categories where users can choose multiple time periods or a premium subscription that allows access to the Premium VOD app content as well. 

So in a way, PVOD is different from the other two business models but at the same time, it comes as a part of the other as well. 

How PVOD Different from other Monetization Models like TVOD and SVOD

Difference between pvod, svod and tvod

As per the Premium video on demand definition, it gives early access to the content that is equivalent to having a privilege that is not available with either TVOD or SVOD. Here the user is paying a premium amount of money to watch a movie or a bunch of movies or videos. By doing so, it serves as online theatres, especially during this pandemic where there is no other way of releasing the movies. 

1. PVOD Vs TVOD

TVOD is on a pay-per-view basis where the access is allotted for a limited period of time, i.e. a day or a week. Once that period is over, access to the video is also removed. There are few constraints here in the form of the price of the content as well as its quality. Users tend to watch only quality videos on a pay-per-view basis. The prices of the quality videos are likely higher which may not be suitable for every user. 

Both these factors affect the mindset of the users who may or may not return for the service making the TVOD a tough choice for the monetization service. This is exactly what the monetization model of PVOD works on – premium movies accessible at any time with access to the entire video library. 

2. PVOD Vs SVOD

Although SVOD allows access to the entire video library at any time for as long as the subscription period allows, the rate of video subscription would need justification if it is higher. It is crucial when you do not have some high-quality videos, the latest movies, or anything attractive and substantial to facilitate at fixed rates. 

On the other hand, PVOD provides the latest and popular movies having higher video and audio quality with additional unlimited access to live videos, as applicable. What is PVOD gaining in comparison with the other monetization model is the trust of the viewers and reliance on their services. 

What is VOD?

“VOD” or Video on Demand is a term that refers to a media distribution system that capacitates consumers to choose when & where they want to watch their desired content. Unlike stereotypical traditional  TV channel playback, On Demand is a flexible technology of leveraging the Internet to broadcast X+ videos. Also, “What is VOD” sometimes used to refer to any video business model or any premium video that is available in high-demand.

Difference between PVOD vs VOD

We all know that in the industry of streaming massive investments in constant delivery of original content production has led to tremendous success rate. 

The word “premium” is classified under the video content that is dealt with “Theatre Blockbusters”. Moreover, PVOD is a conceptual term that is associated with premium video on demand video services which rely on absolute exclusivity, especially for blockbuster screening much upon their grand releases. This results in a huge impact with instant heavy monetization with release buzz around titles for yourself as well as in the movie theater/ entertainment industry. 

On the other hand VOD distributes & delivers every piece of content where your viewers can simply choose from plenty of genres. But all of them would be categorized in set packages where you can monetize them with subscriptions, pay-per-views, or combined package videos. Cash-in your on demand content with live streams into popular VOD & have recurring streams.  Or, you can have pre-recorded videos that’ll help you to grow your audience. 

How PVOD will Impact Studios and Theatres?

There is a specific time gap between the theatrical release of a film and its availability on the OTT platform. Most films generate the bulk of their revenue within a specified period of time. But there is often a difference of time in this collection period and the OTT availability of the films which the PVOD can capitalize on. As for the studios, they are likely to have shows available as on-demand videos within a few weeks of their launch. 

The Future Premium Video On Demand(PVOD) Trends in 2021 and Beyond

PVOD trends 2021 and beyond

1. Inconsistencies

In view of its popularity, it is safer to say that PVOD is going to stay for longer. The future PVOD trends that are possible is a planned movie release that can optimize the revenue from both the theatres and the on-demand platforms. While the franchise films would still stick to the theatre release there may be priorities among the movie genres with a dual release or quicker availability in the PVOD revenue generating monetization dais.  

2. Dual release

Production houses may decide to release the films simultaneously in theaters as well as on PVOD platforms. This move will help generate the same marketing support for the PVOD and reduce the overall marketing expenses. 

3. Release strategies

Franchise films would not like to forgo their theatrical revenue by opting for PVOD. They will forgo the PVOD option and stick to the theatrical release which is more likely to generate revenue than the other option. This would later help generate more SVOD subscriptions that can potentially add long-term value. 

4. Incentivized purchase

PVOD could also pose a threat to the industry when families decide to choose PVOD for a theatre trip which will have a major impact on the revenue.  In order to reduce such loss, the studios may put forward the deal of an Electronic Sell-Through (EST) with a discount on the family films to attract the families towards the theatres.  

5. Tiered pricing

There is also a possibility of the tiered pricing range for SVOD with different rates for different types of movies to attract more subscribers. 

Conclusion

The current and the future trends in VOD platforms show that this is a fast-growing business arena where one can make easy money when provided with the ideal factors. When the streaming videos can be monetized, investing in the PVOD model opens the window to get to more viewers and generate higher revenue. The best course is to find a self-hosted video on demand platform that can personalize the streaming of the content in various formats and devices with an impeccable security shield.

pvod revenue model

Frequently Asked Questions(FAQ)

Generally PVOD is only correlated with theatre or entertainment industry acceleration. The word “premium” is used for VODs for a major reason. Here the pricing factors will flow with PVOD streaming services flow with exclusivity whereas in Video on demand, your viewers needn’t have a second thought to access them after a known/fixed fee. Also, they are in different content genres loaded in volumes within your streaming platform.

A customized website with advanced streaming potentials gives variety to your customers to look for something new. You can have high rates of engagement when you look to build premium video on demand platforms through streaming expertise of platform providers & earn exclusive returns.

PVOD platforms act as a springboard to filmmakers & content creators to have their revenue shooted up with premium VODs streamed with an exclusive pricing. Investing into a content platform gives an alluring opportunity to content production houses or studios to let viewers shop premium on demand shows & scale high in contrast to premium vendors.

Every monetization model has its own unique streaks where popular businesses can leverage on them individually. Premium video on demand (PVOD), Subscription video on demand (SVOD) & Advertising on demand (AVOD) are the most powerful upscaling revenue-generating dais, where various video entrepreneurs can comfortably seize high profitability with rapid growth of streaming technology.

Vijay Amirtham

Movie streaming blogger and VOD Expert in CONTUS VPlayed. Interested in digging deep into VOD streaming platform media business tools and Love to discuss and share views on the latest technologies tips, and tricks.

46 Comments

  1. Clara Reply

    Hello, I am contacting you on behalf of one of our customers, I would like to know some information about your vod premium. Is it possible to know your pricing model for your solution, your hosting solution, and order of price for about 5 million subscribers? Best regards, Clara Lê

  2. Panigrahi Reply

    Looking to integrate premium vod into our eLearning online classes. Can you please provide details of how your vod solution works with Fluter and web? Also, provide details about your pricing.

  3. Shashwat Reply

    We are a movie production company based out of malaysia and we are looking for a premium video on demand for a movie streaming. We would like to know more about the pricing and other commercial details.

  4. Jain Reply

    I am looking for video on demand premium platform or solution for my youtube channel. Looking forward to getting your estimate. Regards Jain

  5. Smriti Reply

    I would like to use your vod premium service for entertainment website and app which is under development right now. Kindly let me know the pricing or packages you have

  6. Derek Reply

    I plan to build a PVOD premium video on demand platform that sellers can do live-stream to sell their product. I need to use third-party service that can make this casework and i’m looking for vod premium service providers. VPlayed is fit for my requirements?

  7. Aedo Reply

    Hi, we are evaluating vod premium solutions to integrate our app, its works on actions in healthcare, medicine, and medical examinations, I would like to know-how are the values ​​and business programs work. I need a PVOD solution.

  8. Agboola Reply

    Greetings, Still no response from anyone about my request. Please i would like to know if i can get an pvod premium video on demand for my teachers to create their own live classes for the student and if i can get VOD premium for lesson plan created for my online school website, although we will be using this company for the live class lesson, whiteboard screen sharing , video recording etc…please get back to me asap

  9. Ana Reply

    Hello, we have an entertainment platform a b2b & b2c platform. We would like to implement a customized premium vod platform and services able to track progress through and allow the consumer & the service provider to video and transact. We are launching this month and we would greatly appreciate your input. Many thanks, Ana

  10. Shahzad Reply

    Hi…
    i need pvod platform including video streaming, vod live streaming to connect the user with our experts. we need to customize it. could you please send me all the details along with your pricing? And finally, we need a vod premium solution that’s why we will reach you

  11. Babajide Reply

    We are interested in building a premium video on demand platform for multiple current users. What’s the price for the pvod platform and are there any monthly subscriptions involve

  12. Alex Lana Reply

    Greetings, I need to develop and deploy an entertainment app to support our customers in video on demand. We have 5 veterinaries and regular 46 customers. What is the pricing and business model we can use? It’s imperative that the app will be a premium video on demand, only showing our brand. Looking forward to doing business with you, best regards, Alex Lana

  13. Brian Reply

    Hi! We are a startup in the professional networking sector. We are interested in your premium video on demand service. Similar to professional networking platforms like amazon prime, we are looking to put heavy emphasis on helping our users make new valuable connections through video on demand platforms. I’m quite intrigued by your pricing structure breakdown as well as the video monetization feature.

  14. Hamza Reply

    Hello there, need to add white label vod platform in existing app used for schools , and video confrencing for whole classrooms please let me know to price for premium video on demand for both ios and android.

  15. Rithika Singh Reply

    Hi, my Question, the mode of premium video on demand is only for movie streaming or it will work for general YouTubers who were at home can upload videos? Thanks

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