In the Transactional Video on Demand model viewers purchase lifetime (or occasionaly temporary) access to a TV show or Film. Per-title prices for titles sold via the TVOD model are often comparable to the monthly subscription prices for SVOD services.

In the TVOD model the viewer purchases a license for the content - this license may apply for a fixed period of time, or for all eternity (or at least until the streaming service from which they have purchased is in existence). The TVOD model delivers higher revenue per viewer, and is a more attractive option for differentiated content that has a niche or guaranteed audience.

TVOD model is often packaged as Electronic Sell-through by services such as iTunes which allow licensed content download, or Pay-Per-view for live streaming popular sports content (such as high-profile boxing showdowns such Mayweather-McGregor).

For distributors seeking to monetize entertainment content, Transactional Video On Demand can be part of a windowing strategy. In the period after the release window of a film, when the film is still in popular consciousness, the distributors can choose to sell it through TVOD. This model would be similar to the release of DVD after the film release window. With revenues from DVD falling fast, movie studios are increasingly attempting to maximize revenue from TVOD business model.