VOD (Video On Demand)

What is VOD?

VOD, short for Video On Demand, is a method of content distribution that enables users to stream video content at their convenience, choosing from a library of movies, shows, documentaries, etc, without following a specific broadcasting schedule.

How does VOD work?

VOD works by storing video content on servers and delivering it to viewers over the internet. When a user requests specific content, it is streamed directly to their device, enabling instant playback. This eliminates the need for physical media or broadcast transmission. Below we have broken out the main service models for VOD.

Categories of VOD

SVOD (Subscription Video On Demand)

SVOD is a subscription-based VOD model where viewers pay a recurring fee to access a library of content, typically without interruptions from advertisements (though some SVOD services offer ad-supported plans). Popular examples of SVOD services include Netflix, Amazon Prime Video, and Disney+.

AVOD (Advertising Video On Demand)

AVOD refers to a model of VOD where viewers can access content for free, but it is supported by advertisements. Ads are integrated before, during, or after the video playback, enabling content providers to generate revenue while offering free access to viewers. Paramount’s Pluto TV, Fox-owned Tubi, and the Roku Channel are among today’s biggest AVOD platforms.

 TVOD (Transactional Video on Demand)

TVOD, also known as pay-per-view, enables viewers to access specific content for a one-time fee. This model is commonly used for recently released movies or special events. An example of a TVOD platform is Amazon Prime Video—users who don’t pay for a Prime subscription can rent or purchase content for a one-time fee.

VOD Advertising

VOD advertising refers to the integration of advertisements within VOD content to generate revenue for content providers and distributors. This advertising model has several advantages compared to advertising on traditional linear TV:

• Data-Driven Targeting: Advertisers can deliver highly relevant ads to viewers based on data such as demographics, browsing behavior, and user interests.
• Strategic Placements: Ads can be strategically placed within the video playback to increase their relevance.
• Robust Reporting and Analytics: In some cases, down-funnel metrics such as website visits, purchases, subscriptions and app downloads can be attributed to ad campaigns based on the viewer IP address.