23 June, 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 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 It’s 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 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. 

Also Read: Different between of SVOD Vs AVOD

How it 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 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
Thiru Kumaran
Thiru Kumaran

Thiru Kumaran is a digital marketing professional who is passionate about helping B2B organizations maximize their lead generation opportunities.

5 Comments

  1. AvatarIsaac Reply

    Very detailed analysis of the video on demand software platforms. Awesome list! Thanks for sharing with us.

  2. AvatarHarrison Reply

    It was a very insightful article and clearly explains the various video on demand solution models. Thank you

  3. AvatarMeryem Reply

    Thanks for taking the time to put this all together on video on demand platform. It’s much appreciated.

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