VOD Streaming: Definition, Models, Benefits & How to Start

VOD Streaming Definition, Models, Benefits & How to Start

What is VOD?

What are the benefits of Video on Demand?

Video on Demand offers various benefits to viewers as it allows them to have more control over what and when they can view the video content. Let’s dig deeper into the benefits of Video On Demand, which will help us better understand it.

Quick and Convenient

A viewer can quickly view a video of their choice online available in a set of video resolutions. You don’t have to stick to a TV or any other device, with this you can watch anything at any time. You can choose a device and a suitable time to view a video without any long-term contractual obligation.

Connectivity is Easy

Video on Demand is already a part of the lives of millions of viewers who consume it every day. Both content creators and viewers need high-speed internet to upload and download videos. Moreover, a compatible device like a PC or mobile phone is also necessary.

VOD is Cost-Effective

Video on Demand is cost-effective for both streaming businesses and viewers. For viewers, compared to traditional TV shows and movies, VOD is available at a low cost. In addition, a streaming business can also use it by developing a VOD application with multiple features, enhancing the ROI.

Any streaming business can drive viewers’ engagement by making online video content available for a longer time to millions of viewers. In addition, these viewers can also share videos easily over social media platforms which helps to enhance the audience reach and engagement. 

Businesses who are into VOD businesses come with this one query every time. How can they monetize their content and grow their business and ROI?

Since the revenue through video on demand has increased tremendously and will grow at 9.71% CAGR to reach USD 230.9 Bn by 2027. Here are some of the effective monetization models that can help your business earn and grow at double the pace. 

Transactional VOD (TVOD)

Transactional Video on Demand is a usage-based monetization strategy. In this, it is necessary for a viewer to pay a one-time fee, eliminating the need to rent or purchase the video content. The global Transactional VOD market is rapidly expanding. It is projected to reach $13 billion by 2027. This presents a lucrative opportunity for earning revenue from content.

Transactional VOD is further categorized into the following three:

Pay-per-view (PPV) – Viewers need to pay once to watch their favorite content, TV show, or any other broadcast. This model is suitable for time-sensitive events like sporting events or live quiz contests.

Electronic Sell-Through (EST) – Viewers can get unlimited access to content using this TVOD’s sub-category. Most of the e-learning platforms use this for monetization purposes.

Download-to-Rent (DTR) – Viewers can buy time-based content that is valid to use for 24 or 48 hours. Most of the OTT providers employ this model.

Subscription VOD (SVOD)

SVOD is one of the popular monetization strategies that are useful for various content creators and streaming businesses. Here, a viewer is only required to purchase the subscription to a video for a certain time like for a week or a couple of weeks.
Here, all viewers get the opportunity to instantly access the subscribed content, including movies and TV shows. All subscriptions might work on the auto-renewal mode that can easily be canceled by the viewer at any time.

Advertising VOD (AVOD)

Advertising video on demand is another famous monetization model in which no viewers need to pay money to access and view any content. Instead, they require you to watch ads inserted into the videos. It enables content creators to get more targeted advertising options.
AVOD has three main categories, including pre-roll, mid-roll, and post-roll. It generated a large user base that in turn led to good revenue.

Why does your business need VOD?

Video on demand differs from that of live streaming and users get to consume content at their ease. It simply means businesses can effectively interact with their targeted audiences, making viewers engaged with their platforms. VOD additionally helps in getting users hooked and eventually improves engagement and conversions.
It provides flexibility to match the viewers’ requirements. Here are some crucial inputs on why streaming platforms require VOD services.

  • Comfort of viewers

Video on Demand is helpful for viewers to consume content at their ease with content availability through subscriptions & memberships of the platform. Additionally, on-demand content is accessible as per the platform’s norms which majorly allows anytime content watch. All VOD businesses enable viewers to subscribe to the content and discontinue it anytime. 

  • Unlimited Viewership

Content creators or streaming businesses need VOD to give access to an unlimited number of users. This feature is important as it can increase the viewership of a business on any device with just a single click.

  • Passive Income Source
  • Control Video Content

Every content creator or streaming business has complete control over the content being played. They have the complete right to share video content ideas without any restriction. A creator can make a video on whatever topic and for anyone they want. There is no need for them to follow any guidelines.

  • More Engagement and Viewers

VOD is popular because it enables a content creator or streaming business to get more viewers. Due to ease of access, VOD has a great potential to attract and engage viewers by providing them a facility to watch content anytime or anywhere.

How to start a VOD streaming business?

Developing a VOD platform proves to be a result-driven approach for streaming businesses. It enables businesses to facilitate viewers through interactive video content delivery as and when required. Below are the steps using which you can start your VOD streaming business.

1 – After commencing a streaming business/ application, video sourcing is required to make a collection of engaging videos relevant to your audience’s demographics. 

2 – It is necessary for you to do something unique and make informative, and useful videos.

3 – Build a website or application to stream videos using the VOD platform. Moreover, you need to reach out to content creators and publishers to get copyright ownership.

4 – After this, you can promote your VOD platform to grow the brand image and access more viewers around the world.


To create an on-demand content streaming app, you need to understand streaming platforms, especially VOD services. Strong solutions and dedicated support are necessary for the development and launch process. VideoCrypt is the top choice for streaming platforms looking to add features like VOD streaming, content delivery, and hosting.

automated mobile app


Get stories in your
inbox twice a month.


Get stories in your inbox twice a month.