23 June, 2021

What is VOD? How it Can Help in Your Business Growth?

VOD (Video on Demand) is the present and future of the broadcasting industry. A report by Conviva suggests that video on demand is viewing up 155% year-by-year with an average of 17.1 minutes spent per session. 

A recent survey by Hubspot revealed that people prefer video overall & other forms of content including infographics, blog posts, and emails. 

Cisco Systems predicts that 70% of people will own mobile devices by 2023, and consequently, the demand for 4K/UHD video content will double up.

These statistics clearly show that video on demand is on the rise. It is currently one of the most profitable businesses to tap into. This article discusses the VOD model in-depth and how businesses can benefit from it.

What is Video on Demand?

Video on Demand is an interactive system of accessing content. VOD allows viewers to watch a video from a content library instantly on their TV, personal computer, mobile phone, or any other device. 

The VOD service is offered by the means of a cable, telephone provider, or broadband and provides viewers with the option to pause, play, rewind, or fast forward the video as per their wish.

How VOD works?

To deliver a video on demand, the video is first converted into a digital format and stored on a video server. It is then compressed and transmitted to the viewer via broadband or cable. 

After reaching its destination, the video is decoded and decompressed via a set-top box and stored on a video server in the viewer’s device. The viewer can then watch the video instantly with the ability to control its speed and other (play, stop) features.

Different Types of VOD Models to Choose 

The success of a VOD business depends on the content strategy and monetization model chosen. 

With the right revenue generation method, one can achieve their monetary goals along with building and popularizing their brand. 

Here are the top three VOD monetization model to earn revenue from your offerings:

1. TVOD or Transactional VOD

The transactional video on demand is based on a pay-per-view monetization model and best suited for the most popular videos with small video libraries. Here, the viewers purchase the specific content they want to watch. 

The TVOD business model is further divided into two categories – EST (Electronic Sell Through), where the viewers get permanent access to the content on a one-time payment, and DTR (Download to Rent), where they have to pay a smaller fee to access the content for a scheduled period of time. Examples of TVOD monetization models are Google Play, iTunes, etc.

2. SVOD or Subscription VOD

The subscription video on demand is the most popular monetization model for varied content creators in order to broadcast with large video libraries. Here, the viewers subscribe to a video service for a certain period of time (weekly, monthly, yearly) to access its content. 

Once the viewers pay the subscription, they are eligible to surf unlimited content on their online video library. The subscription plans are auto-renewal and can be canceled at any time by the viewers. Examples of SVOD business models are Netflix, Hulu, Amazon Prime, etc.

3. AVOD or Advertising VOD

The advertising video on demand is another popular monetization model that uses ads for earning revenues. Here, the viewers can stream the content for free but are stressed to watch inserted ads as well. 

The VOD ads are classified into three categories: – Pre-roll (plays at the beginning), Mid-roll (plays in the middle), and Post-roll (plays at the end). The AVOD business model generates a good amount of revenue that gives a large viewer base. Examples of AVOD monetization models are YouTube, Daily Motion, etc.

Why Your Business Should Use VOD

The modern busy lifestyle calls for a system that is equally flexible to suit the viewers’ needs. Video on demand services provides enhanced accessibility to audiences and enough time for creators to perfect their videos for release. 

Take a look at some of the main reasons why businesses should use VOD for their growth.

●  Convenience

VOD allows customers to consume the content as per their wish. There are no restrictions on time and place, and the viewers can watch as many videos as they want. 

Unlike a traditional broadcasting service, VOD services are not limited to geographical locations and viewers can stream content from worldwide. 

Furthermore, VOD businesses do not have any contractual obligation and provide customers the flexibility to discontinue the service at any moment.

●  Online Community and Passion

With VOD, creators can build communities around their videos and the industry they are passionate about. 

By creating original content on a topic, they can bring those people together who are interested in the subject.

This creates better engagement and a sense of belongingness among the viewers. And if the content is good, it leads to increased business success and earnings. 

●  Source of passive income

The subscription customers provide a regular income to the service provider, so they don’t need to focus on picking up customers each day. 

One can easily increase the customer base with the reference of their online community. This allows the creators to invest more of their time and resources into creating quality content and positioning themselves as an authority in their industry. 

As a result, customers are more willing to buy from them at a premium price.

●  Control over your variety of content 

By creating their own video services, creators have complete control over their content. They can create whatever they like for whoever they want. There are no advertisers’ guides to be followed that can hamper the implementation of their creative vision. One can create videos on the go and share them with the world while being their most authentic selves.

●  Monetize your current fan

 If you have a large social media following, you can direct it to your existing online space and turn your followers into viewers. With an increase in the number of viewers, the popularity and revenue of the business will also increase. 

●  Unlimited Customers & Accessibility

Creating a unified platform is much better, as it is accessible through a variety of devices. Audiences can log in to their account from any laptop/computer or mobile phone with a single click and start streaming their favorite videos. VOD inclined services are also capable of providing content to unlimited customers. Thus, maximizing their revenue potential.

●  Ad-Free Entertainment

Nothing irritates viewers more than ads during video streaming. In fact, many viewers are ready to buy premium memberships to surf ad-free content online. VOD services help businesses deliver a smooth ad-free streaming experience that helps to build a loyal audience base.

How to Get Started With VOD Service?

Creating your own VOD platform is one of the best decisions that you can take to upscale your business. It is not only useful for providing entertainment services but also facilitates business communication, education, training, and much more. 

To get started with your business, the first thing that you need is to create a strong library of videos to make the audiences’ invest in your digital entertaining store worthwhile. 

Then, start by building a website of your own to host your videos. Upload content consistently to keep your viewers engaged. 

And finally, promote your platform well to earn good money. 

You can run promotional ad campaigns, add SEO-focused video descriptions, and 10-30 seconds video snippets to entice audiences to view your content.

Start Your VOD Journey With CONTUS VPlayed

Now that you know how important online video portals are for your business, you may want to find a suitable hosting service for your content. VPlayed is an excellent option for next-generation video streaming. 

VPlayed offers the latest features that set it apart from other VOD streaming support. It is a white-label platform that comes with 100% customization to establish your own brand. 

You can stream videos on-premises/on-cloud and manage your uploads with its in-built video CMS. Its multi-device support and progressive web apps provide a smooth experience to potential viewers. 

VPlayed also features a variety of revenue generation models that include Catch-up TV and Push TV, in addition to the three basic VOD monetization options to maximize your income.


Video on Demand is an excellent way to connect with the audiences and make meaningful relationships that go a long way in the business growth. 
A good video hosting gateway that streamlines the entire content delivery process is your perfect partner in achieving your business goals and climbing the ladder of success swiftly.

VOD Business


  1. AvatarMeryem Reply

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

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