What Are the Multiple Monetization Models in VOD Platform?

Video on demand (VOD) platforms have changed the way we watch digital content. Remember how you had to wait for your favorite program to air at a specific time? No need to do it now! With VOD platforms, you can now have never-before control over your viewing habits- watch whatever you want, whenever you want! 

VOD solutions are gaining the deserved hype in the media world. As more people jump to smartphones and smart TVs, these platforms are set to become more important in the future. According to Statista, the video on demand market is expected to show an annual growth rate of 8.27%. 

Let’s explore how this revolutionary addition to the media world operates, and what shape it will take in the future. 

What is a Video On Demand Platform? 

A video on demand platform is a digital service that lets you watch videos whenever you want.  

Some big names in video on demand platform providers like Netflix, Hulu, and Disney+ store a large collection of movies, TV shows, and other content that you can easily access through your digital devices. 

VOD is seeing rapid growth due to increasing internet speeds, wide availability of smart devices, and changing viewer preferences. More and more people are choosing VOD platforms over traditional TV. 

By 2032, VOD platforms are projected to have a market volume of $650 billion- totally transforming the future of digital content! 

But what else makes them so special? Let’s check! 

What are the 4 Major Features of a VOD Platform?  

VOD platforms come with a lot of unique features that make them easy to use and adaptable to demand. Let’s study some of them: 

1. Content Management System (CMS) 

Good VOD software has a CMS that helps content creators and managers organize their videos. Because of this system, it becomes easy to upload new content, arrange it into categories, and to schedule  the release.

2. Customizable User Interface (UI) 

UI is basically everything you see on a video on demand platform. It includes all things pretty (and not pretty) on the screen. VOD platform providers add a little bit of personal touch to it – offering you recommendations based on what you’ve seen before.  

3. Multi-Device Support: 

Whether you’re using a smartphone, tablet, laptop, or smart TV, good VOD software supports and works smoothly on all of them. You can even start watching a show on your TV and finish it on the phone. Pretty convenient, right? 

4. Security & Digital Rights Management (DRM) 

Video on demand platforms need to protect the content they offer. They do it using special tools to encrypt videos and control who can watch them. This lets the VOD platform providers keep the content safe from piracy and make sure only paying customers can access it. 

What are the Multiple Monetization Models in VOD Platforms? 

Choosing the right way to make money is important for running successful VOD platforms. If you’re looking to build a platform of your own, the best method for you will depend on who your audience is, what kind of content you offer, and how you want your business to grow.  

Let’s look at the main ways VOD platform providers can generate income: 

1. Advertising-Based Video on Demand (AVOD) 

This model lets users watch content for free, but they see ads during the videos. It works well for platforms with lots of users because it attracts advertisers. 

• Examples: YouTube and some parts of Hulu. 
• Pros: Free for users, can reach a wide audience. 
• Cons: Who even likes ads? Some viewers find them annoying, which might make them leave the platform. 

2. Subscription-Based Video on Demand (SVOD) 

In certain platforms, users pay a set fee every month or year to watch as much content as they want. 

• Examples: Netflix, Disney+, and Hulu. 
• Pros: Users get unlimited access, and the platform gets a steady income. Win-win!  
• Cons: Consistency in uploading interesting content becomes important to keep subscribers interested. 

3. Transactional-Based Video on Demand (TVOD) 

Also known as Pay-Per-View, users buy or rent individual pieces of content. They’re often used for streaming special events like sports matches or new movie releases. 

• Example: Google Play Movies. 
• Pros: More charges for high-value content. 
• Cons: Not easy to get repeat customers as easily as subscription models. 

4. Premium Video on Demand (PVOD) 

This is a newer model where users pay extra to watch content early. For example, watching a new movie at home before it’s in theaters. 

• Example: Some parts of Apple TV+. 
• Pros: Appeals to the curious viewers who want to be the first to see new content. 
• Cons: Limited audiences are onlywilling to pay higher prices. 

5. Hybrid Models 

Many successful VOD streaming platforms use a mix of these models. For example, a platform might offer: 

• A free tier with ads (AVOD) 
• A paid subscription with no ads and more content (SVOD) 
• The option to buy or rent specific movies or shows (TVOD) 
• Early access to new releases for an extra fee (PVOD)  

This is known as the hybrid model approach which lets platforms reach out to different types of viewers and maximize their income. 

When choosing a monetization model, VOD platform providers need to think about what your viewers like, what videos you can offer, how much they cost to make, and what other services are offered

Wrapping Up  

Video on demand platforms have changed how we watch our favorite shows and movies. VOD platforms offer different ways to make money, from ads and subscriptions to pay-per-view options. Each method has its pros and cons, and many platforms mix and match to suit different viewers.  

Now, it’s your turn to jump into the world of VOD. There is always a VOD streaming solution available for you – whether you’re a content creator looking to share your work or a viewer searching for the perfect platform.  

Just remain careful about how you decide to make money out of it- after all, choosing the right monetization is what can make or break your streaming business!