Brief Overview of Video on Demand (VOD)

Video On Demand (VOD) is reshaping how consumers access and view content. It provides a convenient platform for audiences to select and watch video content whenever they want, removing the traditional broadcasting schedules’ constraints.

VOD refers to digital systems that allow users to select and view video content on their devices at their convenience. Unlike live broadcast or scheduled television programming, VOD users can pause, rewind, fast forward, and stop the content as they please.

The concept of VOD dates back to the early 1990s. The boom of the internet and advancements in streaming technology in the 21st century have skyrocketed its popularity. Initially, VOD streaming services were offered through cable television providers. Subscribers could pick movies or shows from a limited catalog. The shift began with the rise of broadband internet, enabling services like Netflix and Hulu to emerge.

The global VOD service market was valued nearly $56 billion in 2019. It is projected to reach approximately $120 billion by 2025 with a CAGR growth of around 15%. Factors like increasing internet penetration, advancements in digital infrastructure, and the growing adoption of smart devices play a crucial role in this upswing.

Categories of VOD

1. Transactional VOD (TVOD) – Users pay for each piece of content. Examples include rental services or purchasing a digital copy of a movie.
2. Subscription VOD (SVOD) – Users pay a regular subscription fee to access a library of content. Netflix, Amazon Prime, and Disney+ are classic examples.
3. Ad-supported VOD (AVOD) – Users can watch content for free but are served with advertisements. Platforms like YouTube and Tubi operate on this model.
4. Premium VOD (PVOD) – Typically, newly released content that’s made available for rental at a premium price before it’s available elsewhere.

Understanding the Rise of PVOD on demand

In the past, we waited months for movies to move from theaters to our TVs. Then came the digital age, making everything faster and more accessible. PVOD, or Premium Video On Demand, is a product of this change.

Premium Video On Demand (PVOD) is a video service that lets you watch the newest movies shortly after they’re released in theaters. It’s similar to having early access to the latest films without going to the cinema. For many, PVOD means comfort, as they can enjoy these movies from their living rooms.

“According to an August 2023 survey, most U.S. adults are willing to spend less than $10 on premium video-on-demand (PVOD) content, with just 4% prepared to pay $25 or more for early access to movie releases.” – statista

Now, with PVOD, movies are available to rent or buy at home shortly after theater release. The comfort of home and the allure of latest releases made PVOD popular. The COVID-19 pandemic further boosted its demand, with many choosing or forced to stay indoors. Studios saw this as a chance to maintain revenue without relying only on cinemas.

The growth of high-speed internet and smart devices also played a big part. People could easily stream high-quality videos without glitches.

To sum it up, the convenience of watching new movies at home, combined with technological advancements, has driven the rise of PVOD in the digital age.

What is PVOD Streaming & benefits

Immediate access to the latest movies

Before PVOD, audiences had to wait for weeks, if not months, after a film’s theatrical release to rent or buy it for home viewing. With PVOD, this window has dramatically shrunk. This means that we don’t need to mark calendars or wait for movies to arrive on traditional video-on-demand platforms. Instead, we can simply access some of the latest movies right after their theatrical release or sometimes even concurrently.

Comfort and convenience of home viewing

The age-old appeal of the silver screen is undeniable, but home viewing offers advantages that a cinema can’t provide. Firstly, there’s the sheer comfort of watching a movie in your pajamas, on your couch, under a cozy blanket. There’s no need to find parking, sit next to a stranger, or be confined to a specific showtime. With the evolution of home entertainment systems, most households now have high-definition TVs and sound systems. This, combined with the ability to pause, rewind, or take breaks, grants viewers unparalleled control over their viewing experience.

Potential cost savings compared to going to the cinema

There are other associated costs that can make the outing quite pricey. Transportation, whether it’s fuel for your car or public transit fares, adds to the bill. And then there’s the cinema experience of popcorn, drinks, which can sometimes cost as much as the ticket itself, if not more. For families or groups, these costs multiply. By contrast, renting a movie on PVOD, even if priced at a premium, can offer significant savings. When you factor in the added value of convenience and comfort, the economic benefits of PVOD become even more apparent.

The Technology Behind Premium VoD

The tech behind PVOD is all about streaming. With fast internet connections and advanced servers, movies are sent to your device in real-time. Encryption is a key part of PVOD. This means movies are coded for security to prevent piracy. When you rent or buy a PVOD film, decryption happens, letting you watch the movie without hiccups. This blend of streaming and security ensures studios can release new films early, knowing they’re safe from illegal sharing.

“In July 2022, 24 percent of U.S. millennials reported spending at least $19.99 on a premium video-on-demand (PVOD) transaction to watch a new movie at home, while only five percent of baby boomers did the same.”

Here’s a step-by-step breakdown of how PVOD works, along with the technology behind it:

Content Creation

Studios produce movies or content. This is the phase where directors, producers, actors, and crew come together to create a film.

Digital Conversion and Compression: Once the movie is produced, it’s converted into a digital format suitable for online streaming. Modern video compression technologies, like the H.264 or H.265 codecs, reduce the file size while retaining quality.

Digital Rights Management (DRM)

To prevent unauthorized sharing and copying, PVOD content is encrypted using DRM. Popular DRM solutions include Widevine (by Google), FairPlay (by Apple), and PlayReady (by Microsoft). VdoCipher, a secure video hosting and streaming service provides easy integration of Apple FairPlay DRM and Google Widevine DRM. Videos streamed via VdoCipher cannot be illegally downloaded or pirated. Apart from Multi-DRM video encryption, VdoCipher offers Dynamic watermarking, custom video player, AWS powered hosting, video analytics, secure offline downloads and much more. The pricing is competitive without any hidden charges.

Content Hosting

The encrypted content is then hosted on Content Delivery Networks (CDNs) which are specialized, distributed servers that help in delivering content efficiently to users around the world.

Platform Interface

Platforms like Amazon Prime, Apple iTunes, or dedicated PVOD platforms provide users with a user-friendly interface to browse, rent, or purchase movies. These platforms also facilitate payment processing.

Content Streaming or Download

Once a user decides to rent or purchase a film,

• Streaming – The film is streamed over the internet, requiring a stable internet connection. Adaptive bitrate streaming (ABS) technologies are often employed to dynamically adjust the quality of the video stream in real-time according to the viewer’s network conditions.
• Download – Some platforms may offer an option to download the content. This is useful for offline viewing and can provide consistent high quality regardless of internet speed.

Payment and Licensing

Users pay for the content, often with a set window to watch the film (e.g., 48 hours). The payment also determines the type of access (rent vs. purchase) and sometimes the quality (SD vs. HD vs. 4K). The licensing agreements with studios often determine the pricing and availability windows.

Viewing Restrictions

Due to DRM and platform limitations, there can be restrictions such as:

• Limited time to start watching after renting.
• Limited time to finish watching once started.
• Restrictions on the number of devices or the type of devices where content can be viewed.

Analytics and Feedback Loop

Platforms often collect data on user viewing habits, purchase patterns, and feedback. This data can be used to improve user experience, refine content recommendations, or for studios to adjust their release strategies.

End of Viewing Window

After the viewing period expires (for rentals), the content becomes inaccessible until it’s rented or purchased again. For purchased content, viewers can access it indefinitely, though sometimes there might be restrictions on device transfers or downloads.

Premium Video on Demand (PVOD) vs VOD

Release Windows – Traditional VOD waits for the typical movie release cycle: cinema, then maybe Blu-ray/DVD, and finally, streaming. PVOD disrupts this by offering movies shortly after their cinema debut.

Pricing Structure – PVOD often comes at a premium price. Since you’re accessing a new release, you’re likely to pay more than you would for a regular VOD title. Regular VOD, especially older titles, can be cheaper or even included in subscription packages.

User Experience – PVOD is all about freshness and immediacy. The excitement is similar to watching a new release in a theater but from the comfort of home. Traditional VOD is more like browsing a vast library of content, some old, some new, but not as fresh as PVOD.

Premium Video on Demand (PVOD) vs SVOD

Content Availability – PVOD primarily focuses on fresh releases, allowing viewers to watch the latest movies shortly after their theatrical debut. On the other hand, Subscription-Based Streaming offers a broad library of content, ranging from old classics to recent hits, but might not have the very latest releases that PVOD offers.

Pricing Models – PVOD operates on a pay-per-view model. You pay for each movie you want to watch. In the SVOD model, charges are a monthly (or sometimes yearly) fee, giving subscribers unlimited access to their content library.

User Engagement and Retention Strategies – PVOD depends on the allure of new content. The promise of watching the latest releases can be a significant draw. The SVOD model engages users by constantly updating their library, offering original content, and using recommendation algorithms to suggest content tailored to individual user preferences.

PVOD movies, the future of the film industry?

In recent years, film studios have moved away from the traditional model of theatrical releases followed by a 90-day wait for digital sales. Now, a new model incorporating a premium video-on-demand (PVOD) tier is more common. Films are available on PVOD for premium rental or purchase prices shortly after their theatrical debut, preceding their availability on regular video-on-demand (VOD) and subscription services like Netflix and Disney+.

Just 19 days following its U.S. cinema release, Universal’s “The Fall Guy” was released on Premium Video on Demand (PVOD) and quickly topped many charts. Directed by David Leitch, the film’s rapid transition to PVOD while still screening in cinemas has reignited debates about the impact of shorter cinematic release windows on the struggling theater industry. There are questions about whether the $125 million action-comedy starring Ryan Gosling and Emily Blunt, projected to gross about $165 million globally, suffered at the box office due to early availability at home, or if the declining theater attendance reflects a deeper disinterest in the cinematic experience, despite what audiences claim.

Additionally, it’s important to note that PVOD, requiring a $20 payment for 48-hour access, differs from free streaming services. Since late 2020, Comcast has consistently released its cinematic titles on PVOD 19-21 days post-theatrical debut, except for a few pre-planned exceptions like Christopher Nolan’s “Oppenheimer” and M. Night Shyamalan’s “Old.” Those films with initial earnings over $50 million received extended 31-day windows. The recent PVOD release of “The Fall Guy” follows this established pattern and was not a reactionary measure to unexpected box office performance.

“The Super Mario Bros. Movie,” 2023’s top-grossing film so far, exemplifies the success of this strategy. Released theatrically in April 2023, it moved to PVOD 41 days later and continued to perform strongly in both arenas.

While other studios have hesitated, preferring longer theatrical runs followed by simultaneous releases on SVOD and VOD, Universal’s strategy has allowed it to capture the largest domestic box-office market share last year. This indicates that PVOD can coexist with traditional revenue streams, enhancing rather than cannibalizing overall earnings.

When factoring in PVOD (premium video-on-demand) revenues, Universal’s total earnings increase to $4.5 billion. Notably, PVOD revenue, which includes contributions from the U.K. where digital release windows are extended, adds around $1 billion to their earnings, accounting for a significant 30% increase in overall revenue.

PVOD has been a strategic boon for Universal, providing a 44% enhancement over its estimated $1.8 billion in theatrical film rentals, with PVOD alone contributing about $800 million. Universal’s assertive PVOD strategy, which includes 53 releases since January 2022, has not only led in box office gains but has also fostered a productive cycle, allowing for the production of more films.

Despite initial resistance from major cinema chains like AMC and Regal, Universal managed to negotiate agreements that have gradually eased the industry’s acceptance of PVOD. This acceptance is bolstered by the observation that PVOD releases can sustain box office revenues, as home marketing efforts often complement theatrical showings. This synergy suggests that the PVOD audience typically does not frequent theaters, providing a complementary rather than competitive revenue stream.

This approach is particularly beneficial for Focus Features, where lower production and marketing costs mean that PVOD revenues are highly impactful. For example, $5 million in PVOD earnings can translate to a net return similar to $8 million in theatrical gross, significantly enhancing the viability of green-lighting these films.

Overall, Universal’s use of PVOD illustrates a strategic shift in film distribution, emphasizing its growing importance in the financial ecosystem of film production and distribution. This shift might not only elevate the status of PVOD in media discussions but also reshape the sequencing of film releases to maximize revenue across multiple platforms.

Challenges faced by Premium Video on Demand Sector

Cinema Owners’ Concerns About Increased Losses

The revenue of Cinema or movie theater owners heavily depend on the number of people visiting. With Premium Video On Demand (PVOD), viewers get the convenience of watching the latest movie releases at home. This poses a concern for theater owners, but why?

• Immediate Availability – If a movie is available at home on its release day, many might skip the theater experience altogether.
• Economic Consideration – Watching at home can be cheaper, especially for families. Instead of buying multiple tickets and spending on concessions, they might just pay once for PVOD.
• Comfort Factor – Home environments can be more comfortable. No need to drive, find parking, or sit in a crowded hall.
• Health and Safety – In a world mindful of health and safety (like post-pandemic scenarios), avoiding crowded places can be a priority for many.

This decline in footfalls impacts theaters’ profit margins and may even lead to closures of some establishments.

Potential Impact on Movie Piracy

Piracy has always been a problem of the media industry . With PVOD in the picture, the dynamics change but not necessarily for the better.

• Easier Access to Content – Once a movie is out on PVOD, pirates can more easily access high-quality versions of the film, leading to faster proliferation of pirated copies.
• Quicker Piracy Turnaround – Instead of waiting for theatrical releases to end or for DVDs to launch, pirates can now get content almost immediately.
• Potential Loss in Revenue – The easier availability of pirated versions might deter individuals from purchasing the PVOD version or visiting theaters.
• Higher Stakes for Filmmakers – With PVOD, filmmakers have a tighter window to recoup investments before pirated versions flood the market.

Impact of PVOD’s on Movie’s Box Office Performance

Recently, the Kerala Film Chamber of Commerce made a decision regarding the duration of OTT and theatrical release. The OTT movies can only be released 42 days after the their theatre release.

The introduction of PVOD has stirred debates on how it impacts a movie’s box office performance.

• Shortened Theatrical Windows – Traditionally, movies would stay in theaters for a set period before moving to home video or streaming. PVOD might shorten or overlap this window, leading to debates on revenue cannibalization.
• Dual Revenue Streams – Some argue that PVOD can act as an additional revenue stream without necessarily harming theater collections. It targets a different audience—those who prefer or need to stay at home.
• Changing Metrics of Success – The yardstick of a movie’s success may shift from just box office collections to a combination of theatrical and PVOD revenues. This shift can change how movies are marketed and perceived.

The rise of PVOD presents both opportunities and challenges for the film industry. Balancing the interests of theaters, content creators, and audiences will be crucial as the industry navigates this new terrain.

FAQs

What is Premium Video On Demand (PVOD)?

PVOD refers to newly released movies made available for rental or purchase on digital platforms prior to their typical home entertainment window.

How is PVOD different from regular VOD or streaming?

PVOD releases come out much sooner after a movie’s theatrical debut, often within weeks, while regular VOD or streaming might wait several months. PVOD titles are also priced higher than standard rentals due to their newness.

Why are studios releasing movies on PVOD?

The rise of streaming platforms, changing viewer habits, and external events like global pandemics have disrupted traditional cinema attendance. Studios are exploring PVOD as a way to recoup losses and meet demand.

Will PVOD replace traditional cinemas?

While PVOD offers flexibility, many believe that the cinematic experience can’t be replaced entirely. It’s more likely that the two will coexist, with some movies getting exclusive theatrical runs and others opting for simultaneous or early PVOD release.

Can I watch a PVOD release on any streaming platform?

It depends on the studio’s distribution strategy. Some movies may be exclusive to a particular platform, while others might be available across multiple services.

Are PVOD releases available worldwide?

Availability can vary. Some titles might be available in certain countries before others, depending on distribution agreements and regional release strategies.

Jyoti

Jyoti began her career as a software engineer in HCL with UNHCR as a client. She started evolving her technical and documentation writing skills to become a full-time Content Marketer at VdoCipher.

The post PVOD streaming/Premium Video on Demand platforms explained appeared first on VdoCipher Blog.

But let’s be real, choosing the best video monetization platform in this diverse universe can become challenging sometimes. That’s where we hop in, to help you understand everything there is to know about these platforms and how you can effectively use them.

The rise of video monetization platforms has opened a lot of doors for broadcasters and content creators. Number of digital video viewers worldwide has risen from 2.78 billion in 2019 to 3.48 billion in 2023. There has never been a better time to join and be part of this revolution.

In this blog, we will explore the topic of video monetization platforms in detail. It does not matter if you are new to the game or have some prior knowledge, we have got you covered. We will explore different monetization models like AVOD, SVOD, and TVOD. We will also talk about the latest and best monetization platforms in 2023 for every model which will help you make an informed decision and take your video monetization strategy to the next level.

It is about time you turn your views into revenue and leave your mark in the ever-expanding world of video content. Let’s get started, first thing first,

What Is a Video Monetization Platform?

Video Monetization Platform is a web application that allows content creators, online educators, broadcasters, and media companies to host their video content online and generate revenue from it. These platforms generally offer different ways to monetize the content like through advertisements which is AVOD, subscriptions which is SVOD, transactional which is TVOD (also known as pay-per-view model), or direct sales of merchandise related to video content.

Before we get into the best video monetization platforms for your business. It is important to understand all the monetization models in detail. These model can be divided into 5 major categories as follow,

1. Advertising-based Video on Demand (AVOD)
2. Subscription-based Video on Demand (SVOD)
3. Transactional-based Video on Demand (TVOD), also known as Pay-Per-View Model
4. Premium Video on Demand (PVOD)
5. Membership and Patreon Model

Now the next question is how to choose the right monetization platform for you. This largely depends on the type of content, your audience size, revenue goals, and more. We will discuss this in detail later.

First, let’s talk about all the monetization models in detail,

What Is the AVOD (Advertising-based Video on Demand) Monetization Model?

AVOD or Advertising-based Video on Demand model is the most common of all. It has a straightforward proposition, that is users can access unlimited content as long as they sit and watch advertisements in between. This model is quite a game changer in the video content industry. 

AVOD is a simple yet effective model that helps the platform offer an extensive range of content without the barrier of subscription fees. The most popular example is YouTube where in the free plan you see skippable and sometimes non-skippable ads in between. YouTube shares its revenue from advertisements with the content creators, which motivates them to keep creating and posting content. Other popular AVOD models include video monetization platforms like Hulu, Tubi, and Rumble.

Also note that AVOD is just limited to large platforms. It is also popular among small user-generated video platforms as well. On top of that, AVOD platforms have a competitive edge over other models in reaching a wider audience, users who are reluctant to pay for subscription services. It is a viable alternative to the subscription-based model that we will discuss next.

What Is the SVOD (Subscription-based Video on Demand) Monetization Model?

Unlike AVOD, where the revenue comes from advertisements. SVOD relies completely on users paying a monthly or yearly subscription fee to watch video content. It has a buffet-like approach where you pay one time for exploring and consuming content.

Popular video monetization platforms that utilize this model are Netflix, Hulu, Disney+ (formerly Hotstar), Amazon Prime, and e-learning platforms like Toppr, Vedantu, and many more. With the SVOD model, users can consume a diverse range of shows, lectures, movies, and more without the interruption of ads. This model is more successful with online education videos as no one wants to see ads while learning, as it causes a distraction.

While the above-discussed platforms have thousands of hours of content, it is assumed that an average user will only consume a fraction of this time. If every user gets on consuming maximum bandwidth (data usage while streaming) by watching an extraordinary amount of videos, it could lead to operational losses.

What Is the TVOD (Transactional-based Video on Demand) Model?

TVOD is like the new kid in the block that is becoming increasingly popular in the streaming-based era. As the name suggests, you do a transaction to rent or buy specific content you desire. This model is also known as the Pay-Per-View model, which means pay for what you watch. This model offers something different and is for people who don’t want to be tied up to a subscription to watch video content.

So what’s the big deal with this model? Imagine you are in a shopping mall and you see the price tag for different clothes. You like something, pay for it, and bam – it is yours! With the subscription model, you often end up paying for a bunch of stuff you will never watch. For the creators, this is a pretty sweet deal too, as they are getting more aware of what’s hot and what’s not, which helps them manage costs and risks. So there is no shooting in the dark!

And then there is another disadvantage with subscriptions: you often get overwhelmed with the content, just like in Buffet. So TVOD model is perfect for decisive viewers who know what they want but if you’re someone who likes to browse and try before watching, you might find this model limiting.

Some popular examples of TVOD video monetization platforms are Amazon Prime, YouTube, Apple iTunes, Google Play Movies and TV, Vudu, Bookmyshow, and more.

What Is the PVOD (Premium Video on Demand) Monetization Model?

Premium-based Video on Demand is the newest of all. This is sort of a variation of a TVOD, the catch is you can access the content way before the release, hence the name premium. Imagine you’re a big Marvel fan, and a new movie is about to be released. With PVOD you can watch the movie at the same moment, before the release with a few extra bucks. That’s PVOD for you. You get premium access at a premium cost.

This model is a game-changer for streaming services. Why? Because now they are not just sitting idle and waiting for subscribers anymore. They are actively working on getting early bird specials. Luring customers with the new and shiny content and keeping them around with the rest of the content. 

PVOD gives users the feeling of that extra without them having to wait too long to watch premium video content. Movies like “Free Guy”, “Boss Baby 2”, and “The Flash” are examples of films that used the PVOD model.

What Is the Membership and Patreon Monetization Model?

The Membership model represents an innovative approach to content monetization particularly in the world of digital media and online video creation. It is sort of an evolution of the SVOD model, where you pay to watch some exclusive content behind a paywall for some fee. However, unlike subscribers, patrons feel a part of something special, a sense of community and belonging.

Patreon platform was launched in 2013 and is a membership platform where creators get to monetize their content using fans aka patrons’ support.  A diverse range of content creators such as musicians, podcasters, artists, and video creators receive the fee directly from their supporters who then become patrons. 

Both the membership and patreon models have some similarities in terms of providing exclusive content to premium members. The difference is in the approach and focus, like the membership model is more about creating a community and belonging while the patreon model is about direct support and engagement between creators and fans.

What is a Hybrid Video on Demand Monetization Model?

Apart from these, hybrid VOD models are also popular now which use a combination of two or three of these models. For example, YouTube (AVOD & SVOD) and Amazon Prime (TVOD & SVOD). Hybrid models can be further classified into – 

1. Freemium with Premium Content – that offers free content along with premium content on extra purchases. Example, YouTube, Peacock.

2. Transactional and Subscription Combo – this is just like gym membership, where you pay extra for personal trainers and all other services are free. Example, Amazon Prime Video, and Apple TV+.

3. Ad-based alongside Subscription – the one that shows ads in between but if you want to have an uninterrupted watch session, you can opt for subscription. Example, YouTube, CBS (now Paramount+), and Hulu.

4. Limited-time free access – the one where they offer a movie or show for free for a limited time or for limited content (like just the first episode) and once you get hooked, you got to pay to watch more. Example, HBO Max and Disney+.

This was all about VOD models. Our next segment is how to choose the right video monetization model for your video monetization platform.

How to Choose a Video Monetization Model?

Now it’s time to slice and dice these models to match different industries. We talked earlier about how to go around choosing the top video monetization model for you. This largely depends on,

Target Audience Preferences

What does your audience like? What kind of content are they into? How do they like to consume the content? Are they comfortable with paying or prefer free access with ads?

Nature of Content and Quality

Is your content exclusive or for a global audience? Does your content get released regularly or is more seasonal? Like regular content works well with SVOD while sporadic content can be TVOD.

Revenue Goals

Are you looking for upfront revenue (TVOD) or aiming for steady recurring pay (SVOD)? Do you want to maximize profits quickly or slowly build a community before you sell?

Market Competition

What monetization models your competitor uses? Do you want to use the same or stand out with a different approach? Like if your target market is already saturated with subscription services, you can offer a freemium or ad-based model.

Technology and Infrastructure

Can you manage high-quality streaming (idle for SVODs)? Lower quality streams benefit from ad-based. Does your platform have the capability to offer a seamless experience for subscription or transactional models?

Brand Identity and Value Proposition

Your VOD model should align with your brand identity and value prop. For example, if exclusivity is part of your brand, a premium model makes more sense.

Scalability and Flexibility

Since the digital landscape changes very quickly, your model should be able to adapt and scale as and when needed.

Always remember with VODs there is no size fits all approach. Just like cooking, where you adjust the quantity and ingredients based on arriving guests. The same goes with the VOD models. It has to be tailored to your audience, nature of content, and business or revenue goals.

Which Video Monetization Model Best Suits Your Industry?

Now let’s come back to slicing and dicing these VOD monetization models to match different industries that we talked about earlier.

Music Industry

Freemium with Premium content, is one of the hybrid VOD models that we discussed earlier. For example, YouTube Music and Spotify. You can browse through a wide range of music libraries for free with ads in between and if you prefer no-ads interruptions or other advanced features like creating a playlist or offline listening, you can buy a premium subscription.

One can also opt for TVOD monetisation in this case like iTunes and Bandcamp. Here music artists can directly sell their content to their fans. Great for musicians who have a loyal fan base.

Movie Industry

The SVOD monetization model is the most popular choice in the movie industry. Platforms like Disney and Netflix use this model to attract movie buffs by offering them a large library of movies for a monthly subscription fee.

In this case too, one can opt for the TVOD model, ideal for the latest releases or special screenings. Platforms like Amazon Prime, Google Play Movies, and YouTube let users rent or buy movies at a one-time fee.

TV Shows and Series

Besides the SVOD model, same as we discussed for the movie industry. Hybrid Ad-based with a Subscription-based VOD model also works great here. Popular platform Hulu uses this model where they offer ad-based subscriptions for a cheaper fee for casual viewers and premium ad-free access for binge watchers.

Educational or Elearning Industry

Platforms like Coursera, MasterClass, and Reforge use a subscription-based monetization model because it works well in this industry, providing a wealth of educational content for a recurring fee, ideal for continuous learners.

Freemium with Premium Hybrid models also does well in this industry. Think of platforms like Duolingo and Khan Academy, which offer free educational content with an option to upgrade for more features and no ads experience.

Niche Content (like Fitness or Cooking)

The membership subscription model works in niche content. Platforms like Freeletics, and Centr in Fitness offer membership programs with monthly or yearly subscription fees.

If you want to attract a wider audience, you can also go with the ad-supported content program without a paywall. Just like on YouTube, a lot of fitness and cooking content creators rely on ad revenue while offering free access to their content.

Every industry has its unique nature and needs, so carefully picking the right VOD monetization model is the key here.

That’s all about it video monetization models. By now you must have a clear understanding of VOD streaming and monetization models around it. A VOD platform hosts video content online and shares it with the help of CNDs (Content Delivery networks). Another important aspect of VOD streaming is securing web hosting. A lot of platforms offer a seamless playback experience backed by DRM encryption.

DRM techniques help secure the content by making it difficult for hackers to hack into your platform and sell your content elsewhere at cheaper prices. If your content is not protected, it can lose its value and ultimately the revenue. You must have noticed if you try to take a screenshot or capture a video on Netflix with any recording tool, it doesn’t allow you. That is because it is backed by DRM. 

Enter VdoCipher!

VdoCipher is the most popular secure web hosting solution used by many B2B e-learning businesses to secure their online content. It uses a multi DRM solution which allows creators to secure their content across multiple devices and operating systems. An added bonus is you also get advanced user-based analytics which can further help you optimize your content strategy based on watch time and at the same time look out for suspicious activities.

In conclusion, the landscape of video-on-demand monetization is vast and varies from industry to industry, including type of content, revenue goals, and business vision. Whether you are a musician, online educator, filmmaker, or simply a content creator in a specific niche, there is a tailored video monetization model fit for you. The key is to understand your needs and then make a decision. Simply by making informed decisions and leveraging proper monetization strategy, you can maximize your revenue and can also improve your audience’s watching experience. It’s about time you take your video content seriously and convert those views into a stable revenue stream. Good luck!

A Quick Recap And FAQs Around Video Monetization Platforms

1. What is a Video Monetization Platform?

A Video Monetization Platform is a web application that allows content creators, educators, broadcasters, and media companies to host video content online and generate revenue from it through various monetization models such as advertising, subscriptions, transactions, or merchandise sales.

2. What are the Different Monetization Models for Video Content?

There are five major video monetization models,

• Advertising-based Video on Demand (AVOD)
• Subscription-based Video on Demand (SVOD)
• Transactional-based Video on Demand (TVOD), also known as Pay-Per-View
• Premium Video on Demand (PVOD)
• Membership and Patreon Model

3. How Do I Choose the Best Video Monetization Platform for My Content?

The choice of the right model depends on factors like your target audience preferences, the nature and quality of your content, revenue goals, market competition, technology and infrastructure, brand identity, and scalability. You should tailor the model to align with your specific needs.

4. Which Video Monetization Model Suits Different Industries?

Different industries have different preferences,

• Music Industry: Freemium with Premium content and TVOD
• Movie Industry: SVOD and TVOD
• TV Shows and Series: SVOD and Ad-based with Subscription-based VOD
• Educational or E-learning Industry: SVOD and Freemium with Premium
• Niche Content (e.g., Fitness or Cooking): Membership subscription and Ad-supported content

Akash Kandari

Hi, I am Akash, an engineer turned marketer. I talk about SaaS products, video tech, and product marketing. When not working I enjoy my time watching anime, learning something new and hanging out with friends & family.

The post A Comprehensive Guide to Video Monetization Platforms and Models for Digital Revenue appeared first on VdoCipher Blog.