VoD, short for video on demand, is a media distribution system that enables users to stream video content at any time for their convenience. Users are able to select a video to view from a central server. This eliminates the constraints of the traditional broadcasting system. Because streaming a video uses a large amount of data and takes a large bandwidth, many large VoD providers use a content delivery system (CDN) to quickly deliver high-quality streaming.
Within the last few years, VoD streaming services have grown in number and popularity. So much so that some have gotten rid of traditional television providers and instead fully rely on streaming services for their television entertainment. According to Statista, 62% of US adults are subscribed to a streaming service. The most popular use of VoD is for entertainment purposes, but it’s also used as a system for distributing educational and even fitness video content.
Under the VoD umbrella, there are a few different business models used.
SVoD stands for subscription video on demand. This model gives users unlimited access to the entire library of content for a recurring fee. This fee could be charged weekly, monthly, or yearly it depends on the service provider. SVoD is the most common form of video on demand.
Examples: Netflix, Amazon Prime, Disney+
TVoD is the abbreviation for transactional video on demand. With this business model, users pay for each individual piece of video content they consume. They could either pay a smaller fee to rent the video for a short period of time, or pay a larger sum to own the piece of content.
Examples: iTunes, Google Play
AVoD stands for ad-based video on demand. This type of streaming service is free and unlimited for the viewer to watch and is funded by advertisements shown before and during the video content. Many AVoD companies will often offer ad-free content for a monthly premium.