VIDEO ON DEMAND (VOD) AND ADVERTISING VIDEO ON DEMAND (AVOD)

VIDEO ON DEMAND (VOD) AND ADVERTISING VIDEO ON DEMAND (AVOD)

Video on demand (display) (VOD) are systems which allow users to select and watch/listen to video or audio content such as movies and TV shows when they choose to, rather than having to watch at a specific broadcast time, which was the prevalent approach with over-the-air broadcasting during much of the 20th century. IPTV technology is often used to bring video on demand to televisions and personal computers. VOD and AVOD is and will be in a constant state of growth and change. As internet download time and capabilities become faster and more reliable. Trans-Media will continue to cross the lines of communications, entertainment and the informational platforms.

Television VOD systems can either "stream" content through a set-top box, a computer or other device, allowing viewing in real time, or download it to a device such as a computer, digital video recorder (also called a personal video recorder) or portable media player for viewing at any time. The majority of cable- and telephone company-based television providers offer both VOD streaming, free content, whereby a user buys or selects a movie or television program and it begins to play on the television set almost instantaneously, or downloading to a digital video recorder (DVR) rented or purchased from the provider, or downloaded onto a PC or to a portable device, for viewing in the future. Internet television, using the Internet, is an increasingly popular form of video on demand. VOD can also be accessed via desktop client applications such as the Apple iTunes online content store.

More and more airlines offer VOD as in-flight entertainment to passengers through individually controlled video screens embedded in seat back so or armrests or offered via portable media players. Some video on demand services, such as Netflix, use a subscription model that requires users to pay a monthly fee to access a bundled set of content, which is mainly movies and TV shows. Other services use an advertising-based model, where access is free.

ADVERTISING VIDEO ON DEMAND

Advertising video on demand is a VOD model which uses an advertising-based revenue model. This allows companies that advertise on broadcast and cable channels to reach people who watch shows using VOD. As well, this model allows people to watch programs without paying subscription fees. Hulu has been one of the major AVOD companies, though the company ended free service in August 2016. Ads still run on the subscription service. Yahoo View continues to offer a free AVOD model. Advertisers may find that people watching on VOD services do not want the same ads to appear multiple times. Crackle has introduced the concept of a series of ads for the same company that tie in to what is being watched.

A successful video streaming can be achieved through effective mantras as mentioned below. These mantras bring out major difference in marketing strategy adopted by market leaders. The major mistakes video streaming business do recent days is they wait until they finish creating & acquiring the content also they wait for the market leaders and adopt  the revenue strategy followed by them. Timing can be the key. The success of the video streaming is embedded inside the revenue model and content strategy.

A business revenue model decides the success of a video streaming business. By choosing an effective business model you can make or break the entire base of your video streaming business.

1.  SUBSCRIPTION VIDEO ON DEMAND

Subscription video on demand (svod) is the most successful revenue model used by many online video streaming businesses. Users can watch unlimited online video and surf unlimited video content. It provides a best platform for users to watch their choice of content anytime at anywhere. The users can get the lively feel through subscription video on demand user can play, pause, fast forward, rewind, stop, and record at their convenience. The user can also pay their subscription weekly, monthly, half yearly, quarterly at user’s convenience. With effective download capabilities the user will become a regular user of your service.

Subscription Video on Demand (svod)

When users pay their subscription fee they are eligible to surf unlimited online video content, they can watch enormous choice of content. Subscription models are good for platforms which has huge variety of entertainment video content. To engage their audience for a long term subscription these SVOD model provides variety of video content such as pay TV programming movies, drama, serials etc.

2. TRANSACTIONAL VIDEO ON DEMAND

Transactional model is also a pay per view model. Transactional model works exactly like physical rental stores how physical rental store buy / rent different articles transactional model works similarly these w TVOD buy / rent movies as well as other videos. This transactional model can be explained with a best example as follows.

Transactional Video on Demand (TVOD)

If a TVOD offers a particular video for a week user can watch that rented video any number of times anywhere at any time. Only when the rental period expires the user will not be able to access the rented videos.  The TVOD model are also classified as EST and DTR (i.e.) download to own and download to rent Pay per view also works with special events and live programming  where viewers purchase a particular programming and the broadcaster stream the same event to all those who have purchased an event at a particular set time.

PPV is the best revenue model for various sporting events. TVOD services generally try to retain their customers and engage users by offering special discounts and attractive pricing on selected piece of content and with latest release in the market.

3. ADVERTISEMENT –SUPPORTED VIDEO ON DEMAND

Advertisement –Supported Video on Demand (AVOD)

AVOD is a common form of video monetizing and video streaming model. In this AVOD model users can view videos for free but users view advertisements along with free videos. Since the advertisements are inserted in the free videos the users also watch advertisements along with the free offered AVOD videos. YouTube is the best example for advertising video on demand model.  Video on demand ads are broadly classified into pre-roll, mid-roll, and post-roll ads.

Pre-roll – ones that play in the beginning of video

Mid-roll – once playing in the middle of a video

Post-roll – once playing at the end of a video

4. HYBRID OF SVOD-TVOD

When users have a huge library of videos it is advisable to choose model hybrid of SVOD – TVOD models. When your platform is getting hotter day by day you definitely need this model to monetize your videos and generate higher revenues. You can choose to monetize your videos through the ways of ads inserted into a subscription model or into transactional model or even with the pay per view working with subscription.

HYBRID OF SVOD-TVOD

Hybrid of SVOD and TVOD suits all different variety of users some users would prefer paying for a monthly subscription and access the content video unlimited times for such users SVOD is a suitable model. Similarly when users who just want to buy a particular piece of content and thus PPV will work best for such users.

Sources: Google, Wikipedia, Adage, Brian Steinberg, webnexs.com, CMF Trends, muvi.com