A platform that allows users to access video content with their time preferences. Without any schedule, you can watch content anywhere from any device. Users will have complete control to pause, fast forward content.
Example: Netflix, Disney+ are a few of the top VOD platforms.

Video on demand (VoD) services is ushering in an era of convenience for the digital consumer. These are newer, sometimes much more affordable, alternatives to cable entertainment. Connectivity allows consumers to shift to VOD platforms, without sacrificing quality content.

Now, all eyes are on Asia as it’s predicted to be the main driver of growth in the VOD industry. Here’s a list of the best VoD platforms used among Asians.

Analysis of VOD Platform Market Trends

The Video-on-Demand (VOD) platform market in Asia is characterized by rapid growth and diversity. Key factors driving this growth include:

1. High Internet Penetration and Mobile Usage – Asia’s large and growing internet user base, coupled with high mobile device penetration, provides a fertile ground for VOD services.
2. Diverse Consumer Preferences – Asian audiences have varied content preferences, leading to a demand for a wide range of genres and languages. This diversity encourages VOD platforms to offer a mix of international, regional, and local content.
3. Rise of Local Players – Unlike Western markets dominated by global giants like Netflix and Amazon Prime, Asia sees strong competition from local players like iQiyi in China, Hotstar in India, and Iflix in Southeast Asia, which offer content tailored to local tastes.
4. Original Content Production – Following the global trend, Asian VOD platforms are increasingly investing in original content to differentiate themselves and attract subscribers.
5. Technological Innovation – Adoption of advanced technologies such as AI for personalized content recommendation and high-quality streaming capabilities (like 4K) is becoming a standard among Asian VOD services.
6. Regulatory Environment – The regulatory landscape in Asia varies significantly across countries, affecting the operation and content strategy of VOD platforms, particularly in terms of censorship and local content quotas.
7. Monetization Models – There’s a mix of monetization strategies in the Asian VOD market, including subscription-based models, ad-supported content, and pay-per-view options, catering to the varied economic capabilities of the audience.
8. Partnerships and Collaborations – Strategic partnerships between VOD platforms and telecom providers, content creators, and other tech firms are common, aimed at expanding content libraries and improving service delivery.
9. Challenges – Key challenges include content piracy, intense competition, and infrastructural limitations in certain regions.

Successful Content Strategies of VOD platforms

1. Local Content Creation – Platforms like Hotstar in India and iQiyi in China focus heavily on local content. For example, Hotstar streams popular Indian cricket leagues and iQiyi produces Chinese dramas, aligning with regional tastes.
2. Original Programming – Netflix and Amazon Prime have set a trend in producing original content. Netflix’s investment in original content reached $17 billion in 2020, leading to hits like “Stranger Things”.
3. Data-Driven Content Development – Platforms use viewer data to inform content creation. Netflix’s recommendation algorithm, for instance, plays a crucial role in retaining viewers by suggesting highly personalized content.
4. Diverse Genre Representation – Successful platforms offer a wide range of genres, from drama to reality shows, catering to diverse preferences.
5. International Expansion with Localized Content – Netflix’s strategy includes localizing content and interface for different regions, and producing local originals like “Sacred Games” in India and “Kingdom” in South Korea.
6. Partnerships for Content Acquisition – Collaborations with local and international studios help platforms like Amazon Prime and Hulu expand their content libraries.

Top Video-on-Demand Platforms from China

1. Youku Tudou

Platforms: Web, iOS, Android, PC, Smart TV

Countries: China

The most populous nation in the world occupies almost half (47%) of Asia’s video on demand (VOD) market. Yet the Chinese don’t turn to global brands such as Netflix and YouTube. They stream on local websites, one of which is Youku Tudou.

Founded in September 2005, Youku Tudou started as China’s version of YouTube. E-commerce giant Alibaba acquired the company later on in 2016. It has seen tremendous growth since then, clocking in 500 million users monthly.

The video on-demand platform allows users to view, search, and share videos through many devices. It has a vast video library—from TV dramas, music videos, interviews, and the like. Like Netflix, it also offers a subscription service for its video content.

Pros – Extensive library of local content; user-friendly interface.
Cons – Limited international content; some issues with streaming quality.
User Review – “Popular for its wide variety of Chinese content, but some users report issues with buffering.”

2. Iqiyi

Platforms: Web, iOS, Android, PC, Smart TV
Countries: China

Iqiyi is also one of China’s top video-on-demand platforms. Baidu, China’s largest search engine company, launched Iqiyi in April 2010. It is currently the largest VOD platform in terms of hours spent, nearly 6 billion hours per month. The video-on-demand website also amasses 500 million active users monthly.

Iqiyi offers a hybrid freemium and subscription model. Their users can watch videos free of charge, although these are not free of ads. Premium subscribers, on the other hand, have access to ad-free video streaming, as well as exclusive releases. The streaming site also established entertainment production companies to create their video content.

Users of the VOD platform also have access to graphic novels, online games, and merchandise from the company’s intellectual property.

Pros – Large selection of Chinese dramas and movies; high-quality original content.
Cons – Subscription required for premium content; ad-heavy in free version.
User Review – “Highly praised for its original series, but ads can be intrusive.”

3. Tencent Video

Platforms: Web, iOS, Android
Countries: China

Tencent Video is also leading China’s video-on-demand pack. Tencent, the makers of messaging services WeChat and QQ, created this subscription service in April 2011. The VOD platform has 62.59 million paid subscribers as of February 2018. It also reached 137 million daily active users in the fourth quarter of 2017.

VOD streaming service attributes its massive success to its commitment to delivering high-quality content. Their self-commissioned programs consist of TV drama series, movies, variety shows, and more; which contributed to users watching more hours on the website. Its comprehensive library also contained exclusive HBO content—the only one in China—so subscribers can get caught up with well-beloved shows like Game of Thrones.

Pros – Exclusive content, including popular Chinese TV shows and movies.
Cons – Some content is region-locked; occasional app glitches.
User Review – “Appreciated for its exclusive content, but some international users face access issues.”

4. LeTV

Platforms: Web, iOS, Android
Countries: China

Way before Netflix delivered the video on-demand experience, LeTV was first. Released in 2004, it is now one of the largest online companies in China, currently valued at US$6.43 billion.

LeTV provides an extensive library with over 100,000 TV episodes and 5,000 film titles. It specializes in film and television drama, both from local and international productions. The video on demand (VOD) platform offers free, ad-supported content, subscription options, and pay-per-view content.

Pros – Offers both Chinese and international content; good streaming quality.
Cons – Subscription model can be confusing; occasional server downtimes.
User Review – “Good mix of content but some complaints about customer service.”

Top Video-on-Demand Platforms from Southeast Asia

5. iflix

Platforms: Web, iOS, Android
Countries: Malaysia, Indonesia, Philippines, Brunei, Thailand, Vietnam, Cambodia, Myanmar, Pakistan, Nepal, Bangladesh, Sri Lanka, Maldives

More Asian VOD platforms, particularly in Southeast Asia, are getting a hold of the emerging middle-class population. Like Iflix: it prides itself on delivering high-quality content in developing markets. This approach gained them 15 million subscribers since it started in 2015.

Iflix has a vast library of local and international entertainment available for streaming and downloading. It uses a localized model not only for content, as they adapt their payment options depending on the country. Philippine users, for example, can pay through prepaid data instead of using a credit card service. It also lets you watch videos on demand for one low monthly fee, along with 30 days of unlimited VIP access.

Pros – Strong selection of local and Hollywood content; affordable pricing.
Cons – Limited availability in regions outside Southeast Asia.
User Review – “Known for its affordability and local content, but has a smaller library compared to global giants.”

6. HOOQ

Platforms: Web, iOS, Android
Countries: India, Indonesia, Philippines, Singapore, Thailand

Entertainment companies Sony Pictures Entertainment and WarnerMedia, and Singaporean telecom Singtel released the video on-demand service in 2016. It is the market leader in highly-populated Indonesia, amassing 20% active app users in the country.

Aside from a proportional yet vast amount of local and foreign releases, what makes HOOQ stand out is its “sachet pricing”. It will be the first to launch daily pricing options for as low as US$0.25. The VOD platform also offers a freemium, ad-free option for its subscribers. Customers can watch the first episode of all TV series for free.

Pros – Good selection of local and international shows and movies; affordable.
Cons – Discontinued service in 2020.
User Review – “Was popular in Southeast Asia for its range and price, but ceased operations.”

7. Viu

Platforms: Web, iOS, Android
Countries: Hong Kong, Malaysia, Singapore, India, Indonesia, Philippines, Thailand

With the recent global interest in Korean culture, one must surf through the K-waves: and Viu offers that. Hong Kong telecom PCCW released the service in October 2015. Since then, it has gained 16 million monthly active users as of April 2018.

The VOD platform is a treasure trove of Kdramas, as well as other original Asian content. Episodes first released on cable TV are uploaded hours after the telecast, complete with accurate subtitles. You can use the video on-demand service for free, although these are ad-supported. Premium subscribers, on the other hand, get extra features such as watching in HD.

Pros – Excellent source for Korean dramas; timely updates.
Cons – Limited content variety outside of Korean shows.
User Review – “Highly recommended for K-drama fans, though some desire more diverse content.”

8. Viki

Platforms: Web, iOS, Android, Smart TV (Android, Apple, Amazon Fire, Roku)
Countries: Worldwide (based in San Francisco, Singapore, Tokyo, and Seoul)

Viki is a video on demand website founded in Singapore in 2007. Rakuten Group of Companies acquired Viki three years after, joining big tech giants such as Viber and Lyft. Following the deal, the service garnered 35 million monthly active users.

The service differentiates itself from making the Asian experience global and communal. Although users can access it from anywhere in the world, its library is primarily Asian. Unlike most streaming services that are more for solitary binging, the VOD platform emphasizes the fan experience. Viki users can create “fan collections”, also building communities by allowing fans to interact with each other through timed comments. Plus, they have a LEARN mode that allows users to pick up the languages of the content they’re watching.

Pros – Wide variety of international content; community-subtitled shows.
Cons – Some content is region-locked; ads in free version.
User Review – “Fans enjoy the community features and content variety but dislike the ads and region restrictions.”

9. Catchplay

Platforms: Web, iOS, Android, Smart TV (Apple TV, Chromecast)
Countries: Indonesia, Singapore, Taiwan

Launched in early 2013, Catchplay is an over-the-top (OTT) streaming company based in Taiwan. Its VOD platform reached around one million subscribers, making it one of the most popular digital movie channels in Taiwan.

Users can access Catchplay through transactional and subscription videos on demand. Aside from having an unlimited-use film library that provides detailed browsing information, Catchplay has a rental service for newer movies. It also allows easy-switching of viewing devices without interruption. Users can watch for free, while premium subscribers can pay US$9.50 monthly.

Pros – Strong library of movies; user-friendly interface.
Cons – Limited selection of TV shows; mainly focused on movies.
User Review – “Movie lovers appreciate its collection, but some desire more TV series.”

10. OONA

Platforms: iOS, Android
Countries: Indonesia

OONA is an advertising-centered VOD platform created in 2017, allowing users to watch TV for free. Its recent partnership with communications giant Telkom Indonesia allows 185 million Indonesians to have subscription-less content.

OONA tags itself as the “YouTube of TV”. It’s free, with no subscription nor data needed. Viewers can watch their favorite show when they want, how they want, without commitments. One of its unique selling points is a virtual currency called coins, which can be redeemed for Telcom Indonesian products and other goods.

Pros – Free to use; includes a unique virtual currency system.
Cons – Limited content selection; primarily Indonesian content.
User Review – “Appreciated for being free, but with a limited and niche content library.”

Top Video-on-Demand Platforms from India

11. Hotstar

Platforms: Web, iOS, Android, Smart TV (Apple TV)
Countries: India

A significant chunk of the Asian video on demand market in India, in which streaming users ballooned to 49.8 million in 2018. One of the huge players in the Indian VOD scene is Hotstar. Their humongous success is evident in the first 40 days of its launch, as they have amassed 10 million app downloads.
Hotstar is a VOD platform that offers live video streaming, hence the record-breaking number of users in the app. This allows the users to watch live sports such as cricket, the Premier League, and Formula 1 with ease.

It also provides Bollywood content, alongside American shows and blockbusters. Users have the option to browse a huge amount of ad-supported content for free or choose premium membership plans which are monthly recurring.

Pros – Extensive range of Indian content; includes live sports streaming.
Cons – Streaming quality can vary; geo-restrictions outside India.
User Review – “Highly popular in India, especially for cricket streaming, but users outside India face access issues”

12. Eros Now

Platforms: Web, iOS, Android, Smart TV (Apple TV, Android TV, Roku, Google Chromecast)
Countries: Worldwide (based in India)

Probably one of the oldest in this list, Eros Now is India’s go-to VOD platform ever since August 2004. It prides itself in having the widest range of music and movies in several Indian languages. Currently, they have 100 million registered users and 7.9 million paying subscribers.

While local competitor Hotstar specializes in sports, Eros Now is a gold mine for music videos. Alongside these MVs was the vast content of Bollywood movies (over 10,000!), letting anyone from the world access Indian entertainment. The service has the basic option which allows you to watch unlimited music videos, music, movie trailers, and shorts for free. Premium users, on the other hand, have the access to unlimited movies and TV shows and more video on demand.

Pros – Vast Bollywood content library; includes music videos.
Cons – Occasional streaming issues; user interface can be improved.
User Review – “Bollywood fans love the content selection, though some report technical glitches.”

13. Voot

Platforms: Web, iOS, Android
Countries: India

Voot is the video on demand arm of Indian channel Viacom 18. Coming from one of India’s largest growing media networks, it aims to deliver fresh content. It has 32 million active monthly users, spending an average of 50 minutes per day.

Users can search from Voot’s library containing 45,000 hours, which includes TV shows, films, cartoons, and originals from MTV, Nickelodeon, and more. The best part of this VOD platform? It’s free.

Pros – Wide range of Indian content; includes shows from Viacom 18.
Cons – Ad-supported; some content only available in India.
User Review – “Popular for Indian TV shows and movies, but ads can be a downside.”

Top Video-on-Demand Platforms from South Korea

14. Watcha Play

Platforms: Web
Countries: South Korea

Watcha Play is a subscription VOD platform that rolled out last January 2016. It has been gaining traction in the Korean video on demand market, having 640,000 subscribers so far.

Dubbed as the “Korean Netflix”, Watcha Play’s fee is cheaper than Netflix’s charge, despite giving the same amount of local and foreign content. The movies are collated from Watcha, a “machine-learning-driven personalized content recommendation service”. This allows their users to get the best recommendations on what they’ll watch.

Pros – Curated content; personalized recommendations.
Cons – Focused mainly on Korean content; limited international titles.
User Review – “Praised for its curated Korean content, but those looking for more international variety might be disappointed.”

15. Tving

Platforms: Web, iOS, Android
Countries: South Korea

One of Korea’s video on demand pioneers, Tving continues to provide high-quality streaming services. CJ E&M, a Korean entertainment company, acquired it in 2016. Since then, it has had 7 million subscribers and 8 million app downloaders.

Tving offers not only CJ E&M content, but they’re also expanding to providing clips from other networks. The VOD platform is aiming to give unlimited movie screenings and live professional baseball games in the future. Recently it launched its global counterpart, Global Tving, where people all over the world can watch content in real-time.

Pros – Diverse range of Korean content; offers live TV streaming.
Cons – Primarily focused on Korean audience; limited international reach.
User Review – “Appreciated for its comprehensive Korean content but less known globally.”

16. Pooq

Platforms: Web, iOS, Android, Smart TV (Google TV, Samsung TV, LG Smart TV, Chromecast)
Countries: South Korea

Pooq is a Korean VOD platform established in 2012. It is the joint venture of KBS, MBC, and SBS, three of Korea’s biggest broadcasting companies. As of October 2017, it has 3 million registered users, making it Korea’s #1 OTT online video player.

Pooq delivers real-time streaming from 64 different channels. It also has a library of 6,000 movies and TV series, including content from BBC and Cartoon Network.

Pros – Offers content from major Korean broadcasters; live streaming options.
Cons – Limited to Korean content; may require a Korean IP for access.
User Review – “Valued for local content and live TV, but accessibility is an issue for international users.”

Other Video-on-Demand Platforms

17. dTV

Platforms: Web, iOS, Android, Smart TV
Countries: Japan

Although Japan’s video on demand market is relatively new, forecasts say that it will grow to US$2.4 billion in 2022. dTV is Japan’s market leader, occupying a 20.3% share among other VOD sites. It is a joint venture with entertainment company Avex Broadcasting and Communications, and mobile operator NTT Docomo. Estimates say the ott broadcasting iservice has more than 4.51 million subscribers.

dTv delivers 120,000 titles from different genres, from 13 channels. Subscription and movie rental services are offered, and these are charged by title and format.

Pros – Wide range of Japanese content; affordable subscription.
Cons – Content mostly in Japanese; limited global availability.
User Review – “Popular in Japan for local content, less known outside.”

18. Crunchyroll

Platforms: Web, iOS, Android, Smart TV (Chromecast, Apple TV), Windows 10, and game consoles
Countries: Worldwide (based on the USA)

Crunchyroll is the largest streaming service focused on Japanese animation (anime) and East Asian content. Starting in May 2006, it grew into 35 million community members worldwide.

The VOD platform provides over 900 anime shows and 200 dramas, including fan favorites such as Naruto and Fullmetal Alchemist. Free users can access a small library of content, along with the advertisements. A 14-day free trial is also an option for new users.

Pros – Extensive library of anime; available globally.
Cons – Ads in the free version; some region-locked content.
User Review – “Highly popular among anime fans worldwide, though some complain about the ad-supported model.”

19. Amazon Prime Video

Platforms: Web, iOS, Android, Smart TVs, Windows 10, set-top boxes, and game consoles
Countries: Cambodia, Hong Kong, Japan, Indonesia, India, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam

Of course, the mainstream Western services will eventually find their way into Asia. Amazon Prime Video launched its VOD platform in 11 Asian countries last 2016. It is the streaming platform of the biggest e-commerce website in the world, containing critically-acclaimed shows like Transparent, and Mozart in the Jungle.

Customers can try out free for seven days, as well as sign up for the service at US$2.99 for the first six months. Subscribers are also given a Twitch Prime membership, granting them exclusive content on the said gaming platform.

Pros – Diverse content library; includes Amazon Originals.
Cons – Some content is region-specific; interface could be more user-friendly.
User Review – “Praised for original content and movie selection, but some find the interface less intuitive.”

20. Netflix

Platforms: Web, iOS, Android, Smart TVs, Windows 10, set-top boxes, and game consoles
Countries: Hong Kong, India, Indonesia, Japan, Malaysia, Nepal, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam

Netflix is one of the most popular and the best video on-demand apps. Netflix changed the face of video on demand by providing binge-able original content. Its global expansion in 2016 cemented itself as an entertainment powerhouse.

The quality didn’t change, as Asians can chill to shows such as Stranger Things, Westworld, and Narcos, among many others. Premium users can create different profiles for every person using Netflix, allowing it to give recommended content for each.

Interested to learn more about how Netflix got started? Here’s a blog covering history of Netflix to help you know how the company got founded and challenges it had to go through before becoming one of the streaming giants.

Pros – Large, diverse content library; strong original programming.
Cons – Subscription cost; content varies by region.
User Review – “Widely popular for its range and originals, though some users are concerned about rising costs.”

How To Build Your Own Video On Demand Platform?

The video on demand industry is projected to grow at a rate of 3.6% by 2024. It is a good opportunity for content creators to create content and build their video on demand websites. 

Content: To get started, plan your type of content for the audience. Content can be of any industry like entertainment, sports, education, etc.

Video Monetization: You can explore various monetization platforms. In advertisements, you can show other companies ads on your platform. With a subscription model similar to Netflix you can charge on a monthly basis for content access. In the Pay-Per-View model, charges are applied on watching a specific video like conferences, events, or shows. Choosing the absolute right monetization model based on your audience, type of content and revenue goals is must for creating a successful video monetization platform.

VOD Streaming Requirements: 

• Make sure to have a good internet connection to stream high-quality videos. 
• Select a good hosting solution and CDN that offers quick video access. 
• A Video streaming service should have robust security for authorized content access. Security features like DRM, Watermark, Restricted Domains can safeguard your content. 

Vdocipher offers a content management system to host your video content with advanced features like DRM encryption, Unlimited Video Storage, Video Analytics, Smart HTML5 Player.

VOD Platform

Despite hundreds of VOD streaming platforms at their disposal, most Asians prefer to copy pirated content.You can also check out our top vod streaming services for Video Hosting. If you are looking to launch a VOD platform with the highest video piracy protection, have a 30 day free trial at VdoCipher. 

FAQs

What are the best Indian VOD platforms?

Some of the best Indian VOD platforms include Hotstar, Voot, and Eros Now.

What are the Key Features to Look for in a VOD Platform?

There are several features to consider in VOD such as a well-built Video Content Management System, Customizable, Device Compatibility, Video monetization, and Security.

Why is Video on demand Important?

Video has become the most sought-after way of consuming content. VOD gives the users flexibility and functionality to watch content at their own pace where users can pause, rewind and fast forward the content. For content creators, the platform provides a great opportunity to showcase their talent.

Siddhant Jain

CEO, VdoCipher. Writes about video tech, ed tech and media tech.

www.vdocipher.com/

The post Top 20 Online Video-On-Demand (VOD) Platforms in Asia [2023] appeared first on VdoCipher Blog.

¿Qué es TVOD (vídeo transaccional bajo demanda) ?

En TVOD, el usuario realiza un pago por una elección particular de vídeo o una pequeña combinación de vídeos. Esto puede ser en forma de pagos por una combinación de películas o series. A veces, pagar por una película para verla una sola vez se conoce como «pago por visión». Un ejemplo famoso de una plataforma de VOD con TVOD como modelo principal son los vídeos pagados de YouTube. Hay un costo por cada película. Después de analizar las definiciones, los pros y los contras, presentamos algunas estadísticas y estimaciones clave sobre el SVOD y el TVOD implementados en Netflix, YouTube, Hotstar y algunos de los clientes de VdoCipher. (Infografía a continuación)

La mayoría de los clientes están familiarizados con el TVOD como pago por visión cuando compran acceso a un contenido. Los ejemplos incluyen películas, programas de televisión y eventos deportivos. Las transacciones TVOD pueden ocurrir con un alquiler a corto plazo o una licencia a largo plazo. Sin embargo, en la mayoría de los casos, el consumidor no es el propietario del contenido que compra. Simplemente no caduca a menos que el consumidor viole los términos y condiciones del servicio.

Vudu, Google Play, iTunes y Redbox son ejemplos de proveedores de servicios de TVOD.

¿Qué es SVOD (vídeo bajo demanda por suscripción) ?

Destacados sitios famosos de VOD como Netflix, Hulu, Hotstar, Amazon Prime , Byjus tienen miles de horas de contenido.  Ofrecen contenidos ilimitados a un precio asequible por mes o año. Esta idea de proporcionar una oferta de contenido de vídeo agrupado en un precio único para todos es lo que conocemos como SVOD. La suposición básica para SVOD es que el usuario solo verá una cierta cantidad de contenido (por ejemplo, de 20 a 100 horas por mes).  Si el usuario puede ver de alguna manera todo el contenido que se le ofrece, los costos de ancho de banda para la empresa generarán pérdidas generales.

Ahora enumeremos todas las ventajas y defectos de los dos modelos para que el lector pueda hacer una elección informada. También observamos algunas cifras que utilizan empresas famosas y medianas que operan en estos dos modelos. Esto le ayudará a comprender e implementar mejor las economías para su negocio. Primero, veamos una infografía completa de las estadísticas sobre el SVOD de Netflix.

El SVOD emplea un modelo de monetización basado en suscripción en el que el cliente paga un costo fijo mensual o anual. El SVOD a menudo vincula al usuario a un contrato a corto plazo, como los paquetes de cable estándar, y se le permite cancelar cuando lo dese.

Netflix, Disney+, Hulu, Apple TV+ y HBO Max son algunos ejemplos de proveedores de servicios SVOD.

¿Qué es AVOD?

El vídeo bajo demanda permite a los usuarios seleccionar y ver vídeos según su elección en cualquier pantalla. En un lenguaje sencillo, AVOD o la publicidad de vídeo bajo demanda es la monetización de los servicios de vídeo donde los usuarios pueden ver contenido entremezclados con anuncios sin comprar suscripciones. El concepto principal de este modelo es que los usuarios deben ver anuncios para ver el contenido. Aunque hay muchas más, Hulu y YouTube son las plataformas AVOD más conocidas.

AVOD es frecuente en apps de canales de televisión y plataformas de vídeo generadas por el usuario. Este tipo de servicio proporciona a los espectadores contenido gratuito interrumpido por anuncios. Con el modelo AVOD, la empresa depende del flujo de ingresos para mantener la plataforma y financiar nuevos contenidos.

YouTube, Facebook Watch, Peacock, IMDb TV y Pluto TV son algunos ejemplos de proveedores AVOD.

¿En qué se diferencian SVOD, TVOD y AVOD de otros modelos (SVOD vs. TVOD vs. AVOD)?

Las mejoras tecnológicas hacen que los sistemas de distribución de contenido cambien, por lo que las empresas pueden utilizar diversas tácticas de monetización. Antes de lanzar un producto, es crítico explorar todas las opciones. Esto se debe a que algunos proveedores de VOD existentes tienen una base de usuarios más extensa y comprometida que otros.

SVOD vs. TVOD vs. AVOD

Las mejoras tecnológicas hacen que los sistemas de distribución de contenido cambien, por lo que las empresas pueden utilizar diversas tácticas de monetización. Antes de lanzar un producto, es crítico explorar todas las opciones. Esto se debe a que algunos proveedores de VOD existentes tienen una base de usuarios más extensa y comprometida que otros.

Antes de comparar SVOD, AVOD y TVOD, definamos cada acrónimo por separado.

A medida que se alteran los métodos convencionales para ver e interactuar con el contenido, las empresas de medios deben ser innovadoras en sus estrategias de monetización de plataformas. ¿Cómo decidirse entre SVOD, AVOD o TVOD? En general, se basa en la plataforma y la colección de contenido accesible para los clientes. Aquí hay algunos ejemplos de cuándo emplear cada tipo de enfoque de monetización de servicios VOD.

SVOD es una alternativa atractiva para las empresas de medios, ya que proporciona un flujo de caja constante. A estas empresas les gustan los ingresos recurrentes, y el SVOD era un modelo popular para los que espectadores que cancelan sus suscripciones a servicios de televisión por suscripción disponibles por cable. Sin embargo, en comparación con AVOD y TVOD, el modelo SVOD puede tener problemas con la retención de clientes, ya que los proveedores deben atraer continuamente a los usuarios con contenidos nuevos o descuentos de precios; por ejemplo, muchos ofrecerán un cargo anual con descuento para mantener a los clientes suscritos.

Los clientes, que están más inclinados por una economía digital, desconfían cada vez más de las tarifas recurrentes y los esfuerzos de los medios para restringir el acceso a múltiples usuarios o dispositivos. Para tener éxito con una estrategia SVOD, las empresas deben proporcionar una biblioteca de contenido extensa y constantemente actualizada para mantener a los usuarios interesados. El SVOD también puede ser una alternativa viable para las organizaciones que no pueden o no quieren recaudar ingresos publicitarios para mantener su plataforma.

El AVOD asegura un flujo de ingresos para el contenido que puede no generar dinero directo o recurrente del cliente. El modelo de negocio AVOD a menudo es utilizado por empresas que desarrollan o recopilan una vasta biblioteca de contenido. Sin embargo, el contenido gratuito a veces viene con una trampa. Puede ser difícil para las empresas de medios que emplean el modelo AVOD retener suscriptores, ya sea porque la calidad percibida del contenido es peor que la de los proveedores SVOD o TVOD o porque los usuarios no quieren ser interrumpidos por los anuncios. Además, el modelo AVOD puede proporcionar obstáculos técnicos para garantizar que los anuncios se muestren correctamente y sean interactivos y personalizados para el espectador.

En comparación con SVOD y AVOD, TVOD proporciona las expectativas más transparentes para proveedores y consumidores. Cuando usted ofrece un alquiler o una licencia, conoce los costos operativos y los gastos específicos de cada contenido, lo que le permite establecer precios y rentabilidad más precisos. Del mismo modo, los compradores saben con precisión lo que están comprando. Incluso si ofrece contenido gratuito, no hay garantía de que un cliente utilice una plataforma TVOD más de una vez. Los proveedores TVOD a menudo deben igualar o superar los precios de la competencia para fomentar la lealtad del cliente.

Debido a que un cliente TVOD puede ser ocasional, es difícil para la plataforma acumular datos suficientes para proporcionar sugerencias de contenido que los tienten a regresar. Los proveedores TVOD también deben poder identificar de manera rápida y precisa la ubicación del usuario para procesar el pago y publicar contenido en el idioma correcto.

Los modelos SVOD, AVOD y TVOD tienen ventajas y desventajas; por lo tanto, muchas empresas de medios utilizan diversas técnicas. Las empresas más grandes incluso pueden ofrecer variaciones de servicios VOD específicas de productos. Por ejemplo, YouTube ofrece contenido gratuito generado por el usuario (AVOD), así como contenido premium para alquilar o comprar (TVOD), y servicios de entretenimiento particulares basados en suscripción, incluida  laTV en vivo (SVOD). Del mismo modo, Hulu adopta un enfoque híbrido en su plataforma, ofreciendo cuatro niveles de precios que incluyen una combinación de SVOD y AVOD, así como la opción de combinar con Disney+ y ESPN+. Apple TV+ y Disney+ utilizan métodos mixtos. Amazon Prime Video permite a los usuarios agregar pruebas gratuitas de otros servicios de transmisión, como AMC+, para atraer consumidores.

¿Por qué elegir AVOD?

Aumenta la participación de la audiencia:

Utilice anuncios para atraer la atención de los espectadores y despertar su interés en el contenido. Esto también anima a los consumidores a ver las vistas previas o los pequeños fragmentos antes de comprar contenido premium.

Mejora el alcance de la audiencia:

Los servicios AVOD son versátiles en términos de geografía. Por lo tanto, los especialistas en marketing pueden elegir sus audiencias previstas. Con AVOD, el público objetivo puede ver su anuncio y navegar por su sitio web o comprar mientras espera el contenido basado en suscripción.

Usuarios verificados:

La tecnología de transmisión de vídeo con publicidad (AVOD) proporciona a los especialistas en marketing un enfoque más específico. Ellos pueden medir el retorno de sus campañas utilizando los datos adquiridos de anuncios de los usuarios verificados y entienden mejor dónde colocar sus anuncios para llegar a un número específico de personas.

Monetizar con AVOD

Google busca anunciantes o negocia directamente con empresas que buscan invertir dinero en publicidad. En la mayoría de los casos, el modelo AVOD se combina con el contenido de transmisión pagado o gratuito para producir ganancias adicionales que mejoran su empresa en comparación con la competencia. Por ejemplo, el PPC, o pago por clic, es un método excelente para monetizar un blog.

Excepto para contenido nuevo, películas de renombre y contenido popular de celebridades, el modelo AVOD con publicidad es una excelente alternativa como fuente de ingresos.

AVOD es adecuado para productores u operadores de contenido con una amplia selección de contenido atractivo para los jóvenes, como contenido de televisión, de tendencia y de influencers, como vlogs de celebridades.

AVOD es ventajoso para los agregadores de contenido que obtienen un gran volumen de contenido de varias fuentes y emisoras con contenido nuevo y archivado.

AVOD es excelente para redes de televisión en abierto que pueden generar ingresos óptimos. Algunos tipos de contenido son más adecuados para AVOD, como el contenido extendido y las películas clásicas, ya que hay tiempo suficiente para mostrar anuncios como parte del paquete para que el precio sea razonable.

¿Por qué elegir TVOD?

Una de sus principales ventajas es que TVOD atiende a clientes que simplemente desean pagar por el contenido que ven.

Esto implica que con TVOD, usted puede:

• Proporcionar rápidamente más valor, ya que cada pieza de contenido tendría su precio, lo que permitiría a los consumidores obtener exactamente lo que están pagando;
• Proporcionar contenido más barato para establecer precios más bajos, en lugar de cobrar un costo de membresía más alto y perder clientes potenciales.
• Tener más flexibilidad de precios y hacer que el contenido sea accesible por un período corto o permitir que los clientes lo retengan permanentemente.

Además, realizar eventos de pago único, como conciertos o competencias de videojuegos, es una excelente opción para este tipo de servicio.

VENTAJAS

1. Estimación precisa de los costos operativos de TVOD y riesgos menores:
   Como las estimaciones de los márgenes operativos se realizan con bastante precisión antes del inicio del negocio, usted nunca corre el riesgo de que un solo usuario o grupo de usuarios explote el ancho de banda. Los costos operativos en el negocio de TVOD son los costos de servidor + CDN para transmitir el vídeo de un tamaño particular + el costo para adquirir el cliente único.
2. Modelo de distribución de ingresos sencillo para los creadores de contenido de vídeo:
   A diferencia del SVOD, no hay confusión en lo que el usuario pagó. Por lo tanto, la distribución de la participación en los ingresos para el contenido TVOD suele ser sencilla.
3. Mejores oportunidades de ingresos para el contenido VOD de lanzamiento reciente
   En general, la audiencia tiene afinidad por el contenido de películas y series recién estrenado. Por lo tanto, cobrar una pequeña cantidad por dicho contenido conduce a un pago inmediato por parte de los usuarios y puede alcanzar una escala considerable.
4. El modelo TVOD puede funcionar a menor escala que el modelo SVOD, lo que es una buena opción para lanzar negocios
   Dado que los márgenes operativos son fijos y los ingresos se pueden vincular directamente al propietario del contenido , es una buena opción para comenzar. El modelo SVOD generalmente se activa a una escala considerable.

DESVENTAJAS

1. La retención de usuarios es un problema en el modelo TVOD
   Dado que un usuario tiene la tendencia a pagar por un contenido en particular y luego salir de la plataforma, por lo que no hay ninguna motivación o impulso para que compre contenido nuevo. EL modelo SVOD puede simplemente empujar al usuario a probar un nuevo contenido sin experiencia.
2. La visibilidad del contenido controla los ingresos por contenido: El desafío de la recomendación
   Dado que el usuario pagará por el contenido exacto, lo que se le presente en la página de inicio o como prioridad atraerá su atención. Hay más posibilidades de que pague por ello. Asimismo, es posible que haya un mejor contenido para el usuario en otras páginas, pero ya no le quede presupuesto para comprarlo. Por lo tanto, las recomendaciones personales son una estrategia clave de monetización en las plataformas TVOD.
3. Oportunidades de prueba limitadas, restrictivas para un gran tamaño de contenido. (Por ejemplo, más de 2.000 horas)
   No es bueno esperar que el usuario tenga una idea de todo el contenido que tiene y sepa lo que va a pagar. No puede probarlo todo sin pagar, lo que limita la naturaleza exploratoria de la plataforma.

¿Por qué elegir SVOD?

Numerosos servicios de streaming utilizan actualmente el modelo de monetización SVOD debido a sus múltiples ventajas tanto para el usuario como para sus suscriptores.

Esto se debe a que los servicios de suscripción brindan confianza a los usuarios, particularmente al comparar SVOD y AVOD.

AVOD puede proporcionar ingresos inciertos debido a su dependencia solo de los anuncios. Pero con SVOD, usted sabe exactamente cuánto obtendrá al final del mes y podrá establecer el precio del contenido como mejor le parezca.

Con SVOD, usted puede:

• Tener una fuente de ingresos confiable ya que su audiencia paga una tarifa de membresía mensual.
• Brindar a los clientes una mayor flexibilidad al permitirles decidir cuándo finalizar el servicio.
• Cultivar una base de clientes más exclusiva y dedicada que se sienta como una comunidad; después de todo, están pagando por su contenido.

VENTAJAS

1. La retención de usuarios es alta: La prueba de contenido nuevo es fácil
   Dado que el usuario ha pagado por toda la plataforma en el modelo SVOD, y aunque ya tiene su contenido favorito, también puede descubrir vídeos nuevos. Las campañas de correo, los anuncios y las recomendaciones pueden motivar al usuario a probar contenido nuevo. Sí, esto conducirá a mayores costos, pero también a una mayor retención, más consumo de contenido y, por lo tanto, a un mejor rendimiento de la plataforma en general. Las iteraciones sobre las recomendaciones y el cálculo de costos se realizan para mejorar las estrategias de monetización.
2. El modelo SVOD permite flujos de ingresos recurrentes: Mejor previsibilidad
   SVOD admite modelos de cobro recurrentes. Los usuarios utilizan su tarjeta de crédito para renovar el contrato mensualmente. Esto permite a las plataformas VOD predecir mejor sus próximos ingresos y, por lo tanto, hacer crecer su negocio.
3. Lo mejor para una gran cartera de contenido
   El modelo SVOD funciona mejor si usted tiene una cartera de contenido amplia, proporciona una mejor retención, tiempo por usuario y confianza a los proveedores de contenido de que su contenido llega a una gran audiencia. Más detalles de cómo hacer que funcione aquí.

DESVENTAJAS

1. SVOD solo funciona a escala, incluso en una base de usuarios baja
   El modelo SVOD no vincula inherente o directamente los costos operativos del ancho de banda con los ingresos, sino que generalamente funciona a mayor escala. El costo de la entrega de contenido se reduce a escala.  Los precios altos o la limitación de las horas de contenido pueden hacer que funcione con un número de audiencia menor.
2. Los acuerdos de distribución de ingresos son complicados en el modelo SVOD
   Es difícil determinar qué película o serie llevó al usuario a comprar la suscripción. Aunque las visualizaciones y los datos de participación están en el backend, el modelo general de distribución de ingresos se vuelve complicado. Es una combinación de tarifas de licencia prepagadas para el contenido, participación en los ingresos en función del número de visitas y tasas de retención, etc.
3. Las recomendaciones y la visibilidad para mayor contenido son un desafío
   Dado que las plataformas VOD con el modelo SVOD como canal de ingresos principal tienen 1.000 horas de contenido, qué películas/series presentar o recomendar es un desafío; sin embargo, es una oportunidad para obtener ingresos de los nuevos productores de contenido por anuncios y promociones en la plataforma.

Cómo encontrar el mejor modelo VOD para usar como creador de contenido

El modelo AVOD depende de la publicidad para generar ganancias. Los anunciantes pagan para que sus anuncios o promociones se muestren en un programa o canal específico, mientras que los consumidores pueden ver el contenido de forma gratuita. Estas tres categorías componen el modelo AVOD convencional:

Creadores/Editores de contenido:

Los desarrolladores de contenido producen trabajos de alta calidad que atraen a los espectadores y a los especialistas en marketing a pagar por los anuncios. Cuando el contenido tiene una gran audiencia, los espectadores se convierten en una fuente de ingresos para los publicistas a través de los anuncios. Del mismo modo, los especialistas en marketing se interesan cada vez más en pagar a los publicistas por los anuncios.

Anunciantes:

En el modelo de negocio AVOD, los anunciantes pagan a los publicistas para que promocionen sus productos o servicios para atraer la atención de más espectadores. Los anunciantes confían en los proveedores de contenido para garantizar que lleguen a la audiencia adecuada. Además, los especialistas en marketing pagan por franjas horarias o canales específicos para llegar a su público objetivo y evaluar el retorno de la inversión de su campaña.

Audiencia/Espectadores:

Las audiencias son los principales consumidores en el modelo de negocio AVOD, ya que ellos ven el contenido y los anunciantes pagan por su atención durante los anuncios. La audiencia es el vínculo entre las publicaciones y la publicidad.

Tamaño del mercado AVOD y su crecimiento

Los anunciantes y los proveedores de contenido o publicistas quieren capitalizar la industria AVOD a mayor escala. Se prevé que el mercado se expanda debido a los avances tecnológicos que permitirán que este modelo de negocio evolucione aún más. A continuación, se enumeran las razones por las que el mercado AVOD está creciendo.

• Innovaciones en tecnologías de streaming
• Aumento en el número de usuarios de teléfonos inteligentes
• Aumento de la generación de contenidos digitales.

Se prevé que el modelo de negocio AVOD se expanda aún más debido a su enorme tamaño de mercado y potencial de crecimiento. Durante la próxima década, se proyecta que el mercado AVOD crecerá en un 144 %, llegando a 66 mil millones de dólares en ventas en 138 países.

Desde la introducción de las criptomonedas, ha habido un aumento en la producción de contenido en línea. La tecnología de streaming se volverá más sofisticada, lo que hará que la transmisión sea más rápida y las películas más nítidas para los usuarios. Esto implica que las personas verán vídeos por más tiempo y con más frecuencia. El número de usuarios de teléfonos inteligentes aumentará a medida que más personas puedan permitirse tener uno. Estas razones darán como resultado un mercado AVOD sustancial que beneficiará a todas las partes interesadas.

Para lanzar una plataforma VOD con la máxima seguridad contra la piratería y una experiencia perfecta, inicie una prueba gratuita en VdoCipher.com

Subodh

Product Marketing Specialist, VdoCipher.

www.vdocipher.com

The post SVOD vs. TVOD vs. AVOD: Comparación de los tres modelos de monetización de vídeos en detalle appeared first on VdoCipher Blog.

What is TVOD (Transactional Video on Demand) ?

As the name suggests for TVOD, the user makes a payment for a particular choice of video or a small combination of videos. This can be in form of making payments for a movie or Series combination. Sometimes paying for a movie to watch in one go is usually known as “pay-per-view“. A famous example of a VOD platform with TVOD as the major model is Youtube paid videos. There is a cost for each movie. After looking into definitions, pros, and cons of these aspects, we also present some key stats and estimates on SVOD & TVOD implemented with Netflix, Youtube, Hotstar, and some of the VdoCipher customers. (Infographics are below)

Most customers are familiar with TVOD as pay-per-view when they buy access to a piece of content. Examples include movies, television programs, and sports events. TVOD transactions can occur as either a short-term rental or a long-term license. However, in most cases, the consumer does not own the content they purchase. It simply does not expire unless the consumer violates the terms and conditions of the service.

Vudu, Google Play, iTunes, and Redbox are examples of TVOD service suppliers.

What is SVOD (Subscription Video on Demand) ?

Prominent famous VOD sites like Netflix, Hulu, Hotstar, Amazon Prime , Byjus etc have Thousands of hours of content.  They provide such unlimited stuff in an affordable price per month or year. This idea of providing an offering of bundled video content in one to all pricing is SVOD. The basic practical assumption for SVOD is that the user will only watch a certain amount of content (say 20 to 100 hours per month).  If the user is able to somehow watch all the content offered to him, the bandwidth costs for the business will lead to overall losses.

Now we enlist all the advantages and flaws in the two models. Thus, the reader can make an informed choice amongst the two. We also then look at some numbers using famous and medium sized companies operating on these two models. It will help you better understand and implement the economies for your business. Before that lets look at a stats full infographic on SVOD with Netflix.

SVOD employs a subscription-based model of monetization in which the customer is paid a fixed monthly or annual cost. SVOD often binds the user to a short-term contract or none like standard cable packages. It allows them the freedom to cancel whenever they like.

Netflix, Disney+, Hulu, Apple TV+, and HBO Max are a few instances of SVOD service providers.

SVOD for Netflix: Key Stats, User Engagement, Monetization

What is AVOD?

Video on demand allows users to select and watch videos as per their choice on any screen. In simple language, AVOD or advertising video on demand is the monetization of video services where users can watch videos intermixed with commercial advertisements without buying subscriptions. The primary concept of this model is that the users must watch ads to view the content. Although there are many more, Hulu and  YouTube are the most well-known AVOD platforms.

AVOD is prevalent on television channel applications and user-generated video platforms. This sort of VOD service provides viewers with free content interrupted by commercials. Using the AVOD business model, the firm relies on this income stream to maintain the platform and fund new content.

YouTube, Facebook Watch, Peacock, IMDb TV, and Pluto TV are a few examples of AVOD providers.

How is SVOD, TVOD and AVOD are Different from other Models(SVOD vs. AVOD vs. TVOD)

Technological improvements cause content distribution systems to change so businesses may use various content monetization tactics. Before launching a product, it is essential to explore all choices. This is because some existing VOD providers have a more extensive, more committed user base than others.

SVOD vs TVOD vs AVOD

Technological improvements cause content distribution systems to change so businesses may use various monetization tactics. Before launching a product, it is essential to explore all choices. This is because some existing VOD providers have a more extensive, more committed user base than others.

Before comparing SVOD, AVOD, and TVOD, let’s define each word separately.

As conventional methods of seeing and engaging with content alter, media businesses must be innovative in their platform monetization strategies. How do they decide between SVOD vs AVOD vs TVOD? Generally, it relies on the platform and the content collection accessible to clients. Here are some instances of when to employ each sort of VOD service monetization approach.

SVOD is an appealing alternative for media firms since it provides a consistent cash stream. Media firms like recurring income, and SVOD was a popular model for cord-cutters in the early days. However, compared to AVOD vs TVOD vs SVOD models might suffer client retention since providers must continually attract users with content or price discounts to renew – for instance, many will offer a lower yearly charge to keep customers subscribing. 

Customers, who are more inclined than ever to exercise choice in a digital economy, are suspicious of recurring fees and efforts by media corporations to restrict access to multiple users or devices. To be successful with an SVOD strategy, media businesses must provide an extensive and constantly updated library of content to keep users engaged. SVOD may also be a viable alternative for organizations that cannot or do not want to collect ad income to maintain their platform regularly.

AVOD ensures a revenue stream for content that may not generate direct or recurrent client money. The AVOD business model is often used by companies that develop or gather a vast content library. However, free content sometimes comes with a catch. It may be difficult for media firms who employ the AVOD model to retain subscribers, either because the perceived quality of the content is poorer than that of SVOD or TVOD providers or because users get annoyed with the ad interruptions. Additionally, AVOD may provide significant technical obstacles to ensuring that advertisements are shown correctly and are interactive and personalized for the viewer.

Compared to SVOD vs AVOD, TVOD provides the most transparent expectations for providers and consumers. When you offer a rental or license, you know the specific operating costs and overhead for each piece of content, allowing for more precise pricing and profitability. Similarly, buyers know precisely what they are purchasing. Even if you give free content, there is no assurance that a client will utilize a TVOD platform more than once. TVOD providers must often match or beat competitors’ pricing to encourage client loyalty. 

Because a TVOD client may be occasional, it is difficult for the platform to accumulate sufficient data to provide content suggestions that would tempt them to return. TVOD providers must also be able to promptly and precisely identify the user’s location to process payment and serve content in the correct language.

SVOD, AVOD, and TVOD have advantages and disadvantages; hence, many media businesses use various techniques. Larger companies may even offer product-specific VOD service variations. For instance, YouTube offers free user-generated content (AVOD), as well as premium content for rent or buy (TVOD), and particular subscription-based entertainment services, including live TV (SVOD) (SVOD). Similarly, Hulu takes a hybrid approach with their platform, offering four price levels that include a mix of SVOD and AVOD, as well as the option to bundle with Disney+ and ESPN+. Apple and Disney+ both use mixed methods for VOD monetization. Amazon Prime Video allows users to add free trials of other streaming services, such as AMC+, as an additional means of attracting consumers.

Why Choose AVOD?

Increase Audience Engagement: 

Use advertisements to attract viewers’ attention and pique their interest in the content. It also encourages consumers to examine previews or short snippets before purchasing premium content.

Enhance Audience Reach:

AVOD services are versatile in terms of geography. Thus marketers may choose their intended audiences. Using AVOD, the targeted audience may see your advertisement and browse your website or shop while waiting for their subscription-based content.

Verified Users:

The ad-supported video streaming technology AVOD provides marketers with a more targeted approach. They may measure the ROI of their campaigns using data acquired from adverts on videos from verified users. In addition, marketers better understand where to put their advertisements to reach the most significant number of people.

Monetize With AVOD

Google will seek out advertisers or negotiate directly with businesses seeking to spend money on advertising. In most cases, AVOD is coupled with paid or free broadcast content to produce additional cash that enhances your company compared to competitors. For instance, PPC, or being paid per click, is an excellent method for monetizing a blog.

Except for fresh content, renowned blockbuster movies, and popular content featuring a celebrity, advertising-supported AVOD is an excellent alternative as a revenue source for anything else.

The AVOD business model is well suited for content producers or operators with a wide selection of youth-appealing content, such as TV content, catch-up content, and influencer content such as celebrity vlogs.

AVOD is advantageous for content aggregators that get a large volume of content from several sources and broadcasters with fresh and archived content.

AVOD is excellent for free-to-air television networks that can generate optimal income. Some types of content are more suited for AVOD, such as extended content and classic movies, since there is sufficient time to display advertisements as part of the package to make the price reasonable.

Why Choose TVOD?

One of its primary advantages is that TVOD caters to customers who simply wish to pay for the content they see.

This implies that with TVOD, you can: 

• Quickly provide more excellent value since each piece of content would have its pricing, enabling consumers to get precisely what they’re paying for;
• Provide cheaper content to set lower pricing, rather than charging a higher membership cost and losing prospective clients.
• Have more price flexibility and make content accessible for a short period or allow clients to retain it permanently.

Additionally, conducting one-time paid events, such as concerts or gaming matches, is an excellent option.

PROS

1. Accurate estimation of operational TVOD costs and lower risks:

   As the estimates for operational margins is being done quite accurately before the start of business; you never run into the risk of a single user or group of user exploiting the bandwidth. Operational costs in TVOD business are the costs of server + CDN to stream the video of a particular size + cost to acquire the single customer.

2. Easy revenue distribution model to video content creators:

   Unlike SVOD there is no confusion in what the user paid for. Thus the revenue share distribution for TVOD content is usually straightforward.

3. Better revenue opportunities for fresh release VOD content

   Generally the audience worldwide has an affinity for newly released movie and serial content. Thus charging a small amount for such piece of content leads to immediate payment from users and can reach a considerable scale.

4. TVOD can work on smaller scale then SVOD, Good option to launch business

   Since operational margins are fixed and revenue can be linked directly to content owner , it is a good option to start. SVOD generally kicks at a considerable scale.

CONS

1.   User retention is a problem in TVOD

   Since user has the tendency to pay for a particular content and then go off the platform, there is no motivation or push for him to buy new content. SVOD can just push to user to try some new unexperienced content.

2.  Content visibility controls content revenues: Challenge of recommendation

   Since the user is going to pay for the exact content and watch, whatever is presented to him in homepage or as a priority attracts his attention. There are greater chances that he will pay for it. There might be better compatible content for him in the inside pages, which by the time he discovers has no budget left to spend on it. Thus personal recommendations and presentation are a key aspect of the monetization in TVOD platform.

3. Limited Trial Opportunities, Restrictive for large content size. (E.g 2000+ hours)

   It is bad to expect the user to have an idea of all the content you have and be already decisive about the video to make payment for. He cant try without paying which limits the explorative nature of the platform.

   We will go to SVOD’s pros and cons after this infographic.

   
   TVOD for Youtube Movies, SVOD for Hotstar

Why Choose SVOD?

Numerous streaming services currently use the SVOD monetization model due to its multiple advantages for both the benefits and its subscribers.

This is because subscription services provide users with dependability, particularly when comparing SVOD to AVOD.

AVOD might provide uncertain income due to its reliance on advertisements alone. With SVOD, you know exactly how much you will get at the end of the month, and you may set the pricing of your content as you see fit.

Using SVOD, you can:

• Have a dependable source of revenue since your audience pays a monthly membership fee.
• Give clients greater flexibility by allowing them to decide when to terminate service.
• Cultivate a more exclusive and devoted client base that feels like a community; after all, they are paying for your content.

PROS

1. User Retention is high: New content trial is easy

   Since the user has paid for the whole platform in SVOD, though he has some favorite content there is also a lot of additional content he can try. Mail campaigns, ads, and homepage prompts can motivate the user to try additional content. Yes, it will lead to higher costs, but it also leads to higher retention, more content ingestion and thus better performance of the overall platform. Iterations over recommendations and costing are done for better monetization strategies.

2. SVOD allows recurring revenue streams: Better Predictability

   SVOD supports recurring charging models. Users can put in their credit card which renews the contract on monthly basis. This allows for the VOD platforms to better predict their upcoming revenues and thus grow their business.

3.  Best for large content portfolio

   SVOD works best if you have a large content portfolio, provides better retention, time per user, and trust to content providers that their content reaches the maximum audience. More details on SVOD is here.

   CONS

4. SVOD Only works at scale, Risky at a low user base

   Since SVOD does not inherently directly link operational costs of bandwidth to revenues, it works generally at a larger scale. The cost of delivery reduces at scale.  High pricing or Limitation on content hours can make it work at a lower audience number.

5.  Revenue distribution agreements are tricky in SVOD

   It is difficult to determine which movie or series actually prompted the user to buy the subscription. Though video views and engagement data are at the backend, the overall revenue distribution model becomes tricky. It is a combination of pre-paid license fees for content, revenue share on basis of the number of views, and retention rates, etc.

6.  Recommendations and Visibility for large content is a challenge

   Since VOD platforms with SVOD as a major revenue channel have 1000s of hours of content, which movies/serials to present at the front, to recommend is a challenge. Though at the same time, it is an opportunity to charge money from new content producers for advertisements and promotions on the platform.

Now we present some key stats and estimates on SVOD & TVOD  implemented with some of VdoCipher customers.

How To Find the Best VOD Model To Use as a Content Creator

AVOD business models rely on advertisements to generate money. Advertisers pay to have their ads or promos shown on a specific program or channel, while consumers may watch content for free. These three categories compose the conventional AVOD Business Model:

Content Creators/ Publishers:

Content developers produce high-quality works that entice viewers and marketers to pay for advertisements. When the content gets a large audience, the viewers become a source of money for the publishers via ad revenue. Similarly, marketers have grown increasingly interested in paying publishers for advertisements.

Advertisers:

In the AVOD business model, advertisers pay publishers to promote their goods or services in content to attract more viewers’ attention. Advertisers rely on content providers to ensure that they reach the appropriate audience. In addition, marketers pay for specific time slots or channels to reach their target audience and assess the return on investment of their campaign (ROI).

Audience/ Viewers:

Audiences are the primary consumers in the AVOD business model since they come to see content, and advertisers pay for their attention when they view advertisements. The audience is the link between publications and advertising.

AVOD Market Size and Its Growth

Advertisers and content providers or publishers want to capitalize on the vast scale of the AVOD industry. The market is anticipated to expand due to the technological advances that will let this business model evolve further. Listed below are the reasons why the AVOD market is increasing.

• Innovations in streaming technologies

• Boost the number of smartphone users

• Increase in the generation of internet content.

The business model for AVOD is anticipated to expand even further because of its enormous market size and exponential growth potential. Over the next decade, the AVOD market is projected to grow by 144 percent, hitting $66 billion in sales across 138 countries.

Since the introduction of cryptocurrencies, there has been a surge in online content production. Streaming technology will get more sophisticated, making streaming quicker and films crisper for users. This implies kids will watch videos for longer and more often. The number of smartphone users will rise as more individuals can now afford to own one. These reasons will result in a substantial AVOD market that will benefit all stakeholders.

When selecting the right video monetization platform, content creators need to take an informed decision and select the monetization model that best suits their needs.

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Popular FAQs Around VODs

What are the main differences between TVOD and SVOD models?

TVOD, or Transactional Video On Demand, operates on a pay-per-view basis, where users pay for each video or series they want to watch. This model is ideal for newly released movies or exclusive content. SVOD, or Subscription Video On Demand, on the other hand, offers unlimited access to a library of content for a recurring subscription fee, making it suitable for users who prefer a wide range of content at a fixed price.

Which VOD model is more profitable, TVOD or SVOD?

Profitability can vary based on several factors including content type, target audience, and platform reach. TVOD can generate high immediate revenue from new or exclusive content, while SVOD provides a steady income stream and can be more profitable over time with a loyal subscriber base. The choice depends on the content provider’s strategy and resources.

How do content creators decide which VOD model to use?

Content creators consider the nature of their content, target audience, and market trends. For exclusive or premium content, such as new movie releases or special events, TVOD might be more appropriate. For a broader library aiming to attract a steady subscriber base, SVOD could be a better fit. Creators may also look at hybrid models or change strategies based on performance and user feedback.

Can a platform offer both TVOD and SVOD models?

Yes, a platform can offer a hybrid model that combines TVOD and SVOD, allowing users to choose between paying for specific content or subscribing for access to a broader library. Example, Amazon Prime. This approach can cater to a wider range of user preferences and maximize revenue by attracting both types of viewers.

Siddhant Jain

CEO, VdoCipher. Writes about video tech, ed tech and media tech.

www.vdocipher.com/

The post SVOD vs TVOD vs AVOD: Comparing the Three Video Monetization Model In Detail appeared first on VdoCipher Blog.

TVOD or Transactional video on demand is the video monetization model in which you specifically pay for the video you want to watch. Some major examples of TVOD can be Google Play and iTunes. We’ll explore TVOD in more detail in this article. 

It’s important to find the right monetization model when you start a Video on Demand platform. And it’s not an easy task. To answer that question, we need to understand why VODs have been so successful in gaining new subscribers, and what can be done to improve the process.

What is VOD (Video On Demand)?

VOD (or Video-on-Demand) is simply when you select a video that you want to watch, and it streams online through a player. Video on Demand allows your audience to watch videos whenever they want on their devices. Video content can be accessed even without downloading it or accessing it through external drives. This means that broadcasters don’t have to restrict themselves to rigidly scheduled broadcasts.

What is TVOD (Transactional Video on Demand)?

TVOD stands for Transactional Video on Demand. TVOD businesses make money by selling or renting videos. Users can buy a particular piece of video-on-demand content for a particular price. Purchasing each movie or TV show viewed via the Internet is a form of TVOD. 

The nature of this access can vary –

• Users get access to the video for a fixed period of time on the website/ app
• Users get access to the video indefinitely on the website/ app
• Users may also be able to download the video for offline viewing (protected by DRM so that users can only access it through authorized apps)

TVOD business model can be implemented as:

1. Pay per view for live sports
2. Fixed-period access to education content
3. For electronic sell-through via iTunes, Google Play Movies or Amazon Video

Transactional Video on Demand (TVOD) model can be used for elearning and entertainment videos. TVOD model enables you to make maximum money from videos.

The absence of recurring payment is the key difference between Transaction Video on Demand and Subscription Video on Demand.

Even when purchasing films through Electronic Sell-Through platforms, users do not actually “own” the film. Instead, they license the film from the platform, a license that can be revoked by the rights holders.  In the past, this has caused controversy when iTunes and Amazon video users have found movies disappearing from their libraries.

There are many questions video creators have in mind when starting a video on demand platform. The biggest one of them is:

“What would be the best business model for my video website?”

We have previously discussed the Subscription VOD model in detail. In this blog, I’ll shine a light on its alternative, the Transactional Video on Demand model. In doing so, we answer the following questions related to TVOD:

• How to increase repeat transactions in TVOD, and bring in new customers? What is the best strategy to market a TVOD platform?
• Which is better suited for scale – TVOD or SVOD? Are you restricted to one model forever, or can you change the business model?
• Is the potential for piracy higher in TVOD than for SVOD? How important is a paywall for TVOD?

In 2022, the revenue through Pay-per-view or TVOD platforms is projected to be US$10.42. Electronic Sell-Through platforms such as iTunes and Amazon Video. A large cut of this revenue figure goes to the original content creators. In live sports, Pay-Per-View buys generated $400+ mn revenue for the August 2017 megafight between Floyd Mayweather and Conor McGregor. Surely, TVOD works for entertainment content.

The TVOD model works well for elearning VOD platforms just as well. In 2020, the K12 and competitive exam prep startup Byju’s generated $100 mn revenues. Byju’s, which offers year-long courses along the TVOD model has received total funding of $244 mn. Coursera, valued at $800 million, has emerged as the top elearning VOD platform largely on the basis of their course specializations which until recently followed the TVOD model.

Surely, when done right, TVOD can bring immense riches for video creators.

TVOD is amazingly good for making money

The major business model for video creators are TVOD (Transaction VOD), SVOD (Subscription VOD) and Advertising VOD (AVOD). Of these the TVOD model has the potential to generate the most money from a given video.

Case in point the Fight of the Century boxing bout between Floyd Mayweather and Manny Pacquiao. The mega-fight had 4.6 million users buying Pay Per View rights at $89.95 ($99.95 for HD). The exhibition boxing fight between Mayweather and Conor McGregor had approximately 4.4 million PPV buys at the price of $99.95.

In the Electronic Sell-Through (EST) market iTunes is the largest TVOD platform. iTunes presents various options for users to catch their favorite film. Users can rent a film for $4.99, or purchase it for unlimited viewing at a higher price ($9.99 or more, which can vary for different titles). SVOD platform Netflix on the other hand charges users around $10 for full catalog access.  TVOD models ability to generate fantastic revenue becomes clear when you consider that iTunes generates the same revenue from a user renting 2 films in a month as Netflix does for monthly access to its entire catalog.

Amazon Video offers a hybrid TVOD-SVOD model. Amazon provides its SVOD service as part of its Prime membership. We’ll discuss the reason why some titles are sold separately along TVOD model later in the blog.

Among education websites, Udemy is a TVOD platform. Built as a marketplace with little content moderation, Udemy offers lifetime access to courses at a fixed price. As of 2020 the platform has and ARR(annual recurring revenue) of about 239$ million

When is Transactional Video on Demand the right model for you

TVOD model works best for highly differentiated and compelling content. This is because customers are willing to pay a premium for videos that offer unique value.

VOD’s business model is ideal when you have a small potential audience that is willing to pay a higher price for your videos. Indeed, offering highly differentiated content is a prerequisite for a successful TVOD platform. Prospective users should know the value that your video content will offer them. Your marketing should be focused on how your platform uniquely enables learners to achieve their objectives.

Consider the animation film Despicable Me. The $600mn+ grossing superhit film was released in 2010. The film spawned two sequels, ‘Despicable Me 2’ and ‘Despicable Me 3’, and a prequel named after the stars of the series, the ‘Minions’.

Despicable Me 2 and Minions are available on Netflix’s SVOD platform. Despicable Me 3, released in 2017, would likely makes it way to SVOD by 2018 as well. So why then is Despicable Me only available on TVOD?

A 7-year-old film occasionally broadcast on cable TV, Despicable Me has only a small potential audience that has not seen the film. The film has achieved a cult status in popular culture. There is likely to be a significant subset of fans who would like to own the film for repeat viewings. Universal Studios, the distributors of the film would have calculated that revenue from the title earned through the EST option would be higher than the licensing revenue from SVOD platforms.

The transactional VOD business model is ideal when you have a small potential audience that are willing to pay a higher price for your videos.

Indeed, offering highly differentiated content is a prerequisite for a successful TVOD platform. Prospective users should know the value that your video content will offer them. The marketing for your eLearning TVOD platform should be focused on how your platform uniquely enables learners to achieve their objectives.

Elearning TVOD

Education VOD platforms can succeed with TVOD model when they can demonstrate to potential learners the value addition to them. This value addition could be scoring higher in a competitive examination or learning new skills for a new job/ promotion.

TVOD is widely popular for skill-upgradation courses. Analytics Guru Jeff Saur for instance sells lifetime access to his Beginner to Advance Google Analytics course for $497. With his analytics course Jeff promises that learners can complete Google Analytics certification within a month of starting. A clear achievable target that your viewers can achieve should be the focus of your elearning TVOD platform.

For elearning TVOD platforms, there is necessarily a timeline in which online content is accessed. You should create a structure that learners can follow to achieve their objectives.You should also incorporate additional elements beyond just the videos.Quizzes and Assignments are important so that learners are able to test themselves and ensure that they are absorbing their knowledge. On the SVOD platforms such as Great Courses and Lynda are essentially a buffet of video content with no evaluation element.

Entertainment TVOD

You can build an entertainment transactional video on demand platform by offering highly rated films not offered on SVOD platforms.

Hollywood Studios are also assessing a variant of TVOD, called the Premium Video on Demand. In this model, newly released films would be offered on Video on Demand within weeks of theatre release, at a higher price than when they are eventually released on Blu-Ray.

Whereas Google Play Movies and Apple iTunes are content aggregators, film distributors are also entering the VOD market through their own Transactional VOD platform. The UltraViolet Rights Management system enables users to purchase films from different platforms. This enables users to centrally store proof-of-purchase. In a highly fragmented VOD market, a centralized database for users to save the licenses of films they have purchased is very useful.

Implementing a Transaction Video on Demand model

Electronic Sell-Through – Download to Own vs Download to Rent

iTunes  and Goole play has both renting and buying options. There are restrictions involved in renting a film – you have 30 days in which you can start watching a film, and once started, you have 48 hours to finish watching the film. You can watch the film as often as you like, until it expires after 48 hours of starting. You cannot stream it simultaneously on different devices, or download it on more than one device at a time.

In the purchase option, users have license to download and stream the film on any owned device. Purchase options for films cost on average $9.99, with some variations depending on the title.

In TVOD your users license your content

Major TVOD platforms such as iTunes and Amazon Prime Video have faced controversy when they had to pull films from the libraries of users who had purchased the titles. Licenses for films can change hands between distributors, at which point the rights holder may pull it from the TVOD platform.

Users buying digital content – whether books, music or films, only buy a restricted license to that content. On the other hand when users purchase hard copies of books or Blu-Ray discs they own that content (subject to copyright restrictions).

When selling online content, a Digital Rights Management system is necessary to implement user licenses. DRMs enforce restrictions such as preventing users from making illegal copies and sharing and allowing access for a fixed period of time only.

Implementing TVOD for eLearning videos

For eLearning videos you should offer fixed-period access access to students. For example, if you provide videos for IAS exams, the fixed period cycle for users could be 11 months over which learners prepare for the exam. You may alternatively offer lifetime access as well, in which case you would need to regularly update your content in line with changes in the field.

Distinctions between TVOD and SVOD model

1. Customer Perception of Value tends to be Higher for SVOD platforms

For SVOD platforms, users pay a low amount per month in return for unlimited access for a month. This seems a good deal on the surface, and users are likely to continue the recurring payments. In TVOD model on the other hand there is a usually high one-time fee for access to content.

Consider an online course that you would complete in 6 months. The online platform may charge you $10 per month subscription, or it may charge a one-time fee of $50. Assume that in either cases it would take you 6 months to complete the course. Users are more likely to opt for the subscription because of the lower upfront fees. However the net fees is actually higher for SVOD than for TVOD. This paradox is the reason why educational VOD platforms such as Udacity and Coursera, which have been looking to scale up, have transitioned towards the SVOD model.

2. Customer Retention is a major challenge in TVOD

In SVOD business model you retain your customers over a period of time. Users get habituated to paying a fixed monthly fee in the SVOD model.

In the case of TVOD, users deliberate before every transaction. Customer retention is a major challenge in TVOD. TVOD platforms require a greater marketing effort, both to retain existing customers and to get newer ones.

3. TVOD is best suited for new VOD platforms

In TVOD the revenue generated per user is high, which makes up for the lack of scale when starting out. Coursera adopted the TVOD model in its growth stage.

Coursera evolve into a Subscription Video on Demand platform in 2016, as it chased better scale. Subscription VOD platforms are suited for large number of users. The lower ticket size in SVOD is compensated by the larger number of users.

Video content owners opt for TVOD largely when the expected audience size is low, but the audience are willing to pay a premium for the content.

4. Royalty calculations are straightforward for TVOD platforms

Most elearning SVOD platforms pay video course creators a a portion of their revenue proportionate to the number of viewers to their videos. This involves complex calculations, and the platform has to take into account different metrics such as number of learners who enroll into a course, number of learners who complete a course, and net number of viewers. Royalties paid to course creators tend to be quite low in comparison to the overall revenue of the SVOD platform.

Royalties are much higher in the TVOD model. The video creator gets a larger percentage of transaction revenue. In the case of Udemy, video creators and Udemy each receive 50% of every course purchased organically on the platform.

Marketing Your Transaction Video on Demand business

In SVOD payments are recurring, and offer a stable revenue base. However, that is not the case for TVOD platforms. You cannot take repeat transactions for your TVOD platform for granted. An elearning VOD platform has done its job when users complete the course. Students will be unlikely to pay a second time to complete the same course. For EST platforms, returning users do the same cost/benefit analysis at the point of each purchase.

As a result, TVOD platforms suffer from lower user retention and fewer repeat transactions. This translates to low revenue stability.

You should use the right marketing channels for continuous growth. Social Media and Email marketing are the best channels to attract new users to your TVOD platform. Social Media enables you to target audience on the basis of their interests. It also utilizes network effects, so you can easily multiply your reach across your potential audience.

When you market an online video course you should highlight the measurable improvements that the course offers. This could include higher test scores or better chances of climbing up the career ladder. You can also include testimonials from successful learners to highlight the value of your course.

Effective Paywall is more important for Transaction Video on Demand

One-time costs are high for TVOD content. This makes potential users seek means to access the video content for free, thereby increasing likelihood of content piracy. It is much more likely that users will download video content, and share it with friends, either to help them save costs for the one-time access fee, or to split the one-time fees.

In subscription VOD there is an ongoing relationship between the user and the platform. Users are likely to continue on the platform out of loyalty. Indeed the rise of SVOD platforms has significantly contributed to decline of piracy of films.

Apple applies a DRM to movies downloaded via iTunes, preventing users from sharing the video content.

VdoCipher offers a DRM solution to implement a paywall for your TVOD content. VdoCipher’s secure video hosting protects your video content from downloader plugins. You can use VdoCipher in combination with a membership plugin to allow access only to authorized users on your WordPress website.

Check out our full list of features to see how you can use VdoCipher for business.

What is an example of TVOD (Transactional Video on Demand)?

The TVOD model works well for elearning VOD platforms just as well. In the first half of 2021, the K12 and competitive exam prep startup Byju generated $16.5 billion after raising more than $1.5 billion during the first half of 2021. Byju’s, which offers year-long courses along the TVOD model has received a total funding of $244 mn. Coursera, valued at $800 million, has emerged as the top eLearning VOD platform largely on the basis of its course specializations which until recently followed the TVOD model.

TVOD examples – Among education websites, Udemy is a TVOD platform. Built as a marketplace with little content moderation, Udemy offers lifetime access to courses at a fixed price. As of May 2021, the platform had over 40 million students, and the highest-earning instructor had exceeded $2.8 mn in total earnings.

Advantages of TVOD (Transactional Video on Demand)

• You can set up a TVoD model to control the duration of time your viewers spend consuming your content. For example, if you have some exclusive content in your video library, you can set up a time restriction for “x” hours per day or even months, as per your preference
• TVOD offers the best revenue opportunities for monetizing fresh video releases. Hotstar is leveraging the recent Bollywood & Hollywood movies like The King’s Man, A Thursday, and 83. Generally, the audience prefers to watch a new movie or TV show first and will pay more for that content than for any other new release.
• In the TVOD model, you can sell videos that are either single part or multipart. You can leverage your pricing strategy by defining different price points for different types of content.
• Royalties are much higher in the TVOD model. The video creator gets a larger percentage of transaction revenue. In the case of Udemy, video creators and Udemy each receive 50% of every course purchased organically on the platform.
• As the estimates for operational margins is being done quite accurately before the start of business; you never run into the risk of a single user or group of user exploiting the bandwidth. Operational costs in the TVOD business are the costs of server + CDN to stream the video of a particular size + the cost to acquire a single customer.

Disadvantages of TVOD (Transactional Video on Demand)

• The major challenge of selling videos online is to retain customers.TVOD platforms require a larger marketing effort, both to retain current customers and to get new ones.
• Limited Trial Opportunities, Restrictive for large content size (E.g 2000+ hours)

It is bad to expect the user to have an idea of all the content you have and being already decisive about the video to make payment for. He cant try without paying and limits the explorative nature of the platform.

How do I find the right model for my business?

1. Competitor and Audience Analysis

In order to determine whether your idea will work, you need to know what your competition does (products, price), how they promote it, the marketing channels they use, and why customers choose them.

2. Set Up the Goals

To realize your vision, you’ll need to be able to support it with the right planning and resources.

Considerations such as these will help you decide whether or not you should take your TVOD idea further. By choosing a TVOD model, you’re picking a product that has broad enough appeal, and will sell well each month. With SVOD, however, you could create more content that people can enjoy each month, justifying the monthly subscription fee.

3. Selecting Monetization Model

You’ll want to pay close attention to how much content you offer, and how you deliver that content. Consider what type of content you are going to create.  In the case of SVOD, more consistent revenue over time than TVOD. TVOD offers higher average sales values but they are not recurring. 

4. Craft your Offer

While creating your offer consider the below questions

• Would you offer live streaming as an upsell, part of an SVOD subscription, or a free offering?
• What is the main product you will sell (subscription or one-time purchase)?

Conclusion

A video is great to help you scale your business. It’s essential to consider your audience and business goals and plan your monetization strategy for maximum growth. Video hosting platforms like Vdocipher offer video management solutions with robust security technologies like DRM which protects video content from piracy. You can sign for a free trial of 30 days here. 

FAQs:

1. What is TVOD?

TVOD is a VOD service that allows users to pay a one-time fee for a video content access. You get access to the video for a fixed period of time, indefinitely and users will be able to download the video for offline viewing.

2. What are the advantages of TVOD?

A TVOD streaming platform has several great advantages. One of those is you can offer Pay-Per-View (PPV) bundles to your end users. They can just pay for the video collections they want to view. It also allows you to set different price points for different content based on your pricing strategy.

3. What is the key difference between SVOD and TVOD?

The absence of a recurring payment in TVOD is the key difference between Transaction Video on Demand and Subscription Video on Demand.

4. What are the examples of TVOD Models?

Some of the examples of TVOD include Google Play, Apple iTunes, YouTube movies

Siddhant Jain

CEO, VdoCipher. Writes about video tech, ed tech and media tech.

www.vdocipher.com/

The post TVOD – Build a Transactional Video on Demand Platform appeared first on VdoCipher Blog.

Today, OTT is the unusual alternative which is rising and bringing television entertainment to screens in people’s pockets. In this age of technological development, the consumers have become more conscious about the price they pay for services. OTT brings film and TV content via the Internet, without requiring people to subscribe to TV cable services. OTT platforms in India are taking over the Indian entertainment market massively in this very decade.

According to the latest FICCI-KPMG report (2017), “urban consumers have been early adopters of video, especially in the age group of 15-34, which constitutes 70-75% of the total internet base.”

Therefore, working professionals, students, or someone who doesn’t own a television set, find it more comfortable to consume most of the TV shows and movies online. For example – Today, even parents staying at home enjoy convenient viewing through Amazon Firestick.

The scope for OTT in India:

As per the reports by The Indian Express, “India will have 371 million internet users by June. There are about 66 million unique connected video viewers in the country, and about 1.3 million OTT paid video subscribers.”

The most evident example of OTT in India is Hotstar. Hotstar, a subsidiary of Star India Pvt. Ltd has included 8 languages and content from 15+ TV channels. Hotstar brings some of the longest running, and highest rated TV content in India.

Netflix is another example. Netflix launched its streaming subscription video-on-demand (SVOD) service in 2007. Currently, more than 1/3rd of the total American households subscribes to Netflix. In India, the millennial generation prefers to sit at home and watch Netflix instead of going to the Cineplex. Therefore, the hike in the use of the internet and smart devices will undoubtedly grow at exponential rates.
Voot, Amazon Prime Video are some other examples. This clearly explains the depth of OTTs effect. The content owners and aggregators are using non-TV platforms to improve reach and generate revenues through subscription and advertisement.

But what makes one want to watch television online? This presents a fantastic opportunity for service providers to generate new revenue from video-on-demand, catch-up TV, and interactive applications.

Here are some ways in which OTT platforms are revolutionizing the television watching experience:

• Play. Pause. Rewind. Forward:
  Compared to Television, OTT services offer a large part of the control of watching to the viewer. The viewer can decide how much they want to consume.
  The video feed is streamed online and thus, the viewer is no longer within the confines of time slots.
  With OTT platforms viewers no longer need to worry about missing out on the continuation of their favorite shows.
• The convenience of devices:
  OTT literally means Over The Top – anytime and anywhere. These services are available across different devices (smartphones, laptops, and televisions). According to EY, there were 160 million digital video viewers in 2016 alone. This base is expanding daily. Whether it’s the desire to watch a movie alone on a lazy day or spend a family evening with on the large screen, OTT platforms take care of it all.

  As per Media Partner Asia, there are more than 66 million active OTT users across India today, and the number of video subscribers is projected to grow to 105 million by 2020.

• Cost-Effectiveness:
  Pay for six movie channels seems a waste when they are available for the price of one. OTT platforms have changed the concept of making custom packs and choosing channels. OTT platforms prove all content for the same price as their subscription plans. With data packs and internet services getting more cost-effective, the future for Video-on-Demand (VOD) platforms online looks bright.

  According to a Cisco report, India will have 829 million internet users by 2021, twice as much as compared to 2016 when there were already 373 million users.
  

• Globally curated Content in One Place:
  Compared to DTH cable services, OTT platforms offer a large variety of regional and international content. Many shows air at the same time as they would in their host country.
  OTT customers are often mobile viewers and consume content from a variety of places. From waiting in line at the store to even while on vacation. A unique aspect of the Indian OTT market is the large population base living outside India. Global Content curated at one platform saves the need to pay for costly foreign hosts.
• Language is no longer a barrier:
  A huge opportunity exists due to a large number of languages spoken in India. Having content available in many languages beyond the most popular ones differentiates one type of OTT platform from the other. This is why Netflix is slowly increasing more Indian content.
• Catching up on Sports made easier:
  From football and cricket to Formula, almost all major sporting events are now available on OTT platforms.

  According to a report by Scroll.in, online IPL viewership crossed the 100 million mark in 2016.

  One no longer has to wait for the highlights to catch up on those football penalties and hockey goals. People can watch sports anywhere now on their smartphones. In the metro, on the bus, on a vacation and even at home. They are no longer bound to the time slots.

• Original Content:
  OTT platforms also provide a platform for small budget projects and web series.
  Even famous Indian movie directors like – Zoya Akhtar, Anurag Kashyap, Dibakar Banerjee are opting for OTT platforms to release their movies. Lust Stories and Sacred Games are Original Indian contributions released exclusively on Netflix.
  Web series provide content for people who simply cannot connect with the daily saas-bahu soaps on television. Apart from shows, OTTs also are also great platforms for stand-up comedians and travel-lifestyle concepts. Comicstaan, a reality tv show by stand-up comedians like – Tanmay Bhatt, Biswa Kalyan Rath., etc is being aired on Amazon Prime Video.
• Feedback and Chatrooms:
  OTTs revolutionized the way the viewer/consumer interact with their favorite shows. Content makers and script writers do not depend on TRPs alone. They can actually improve on their content by analyzing viewer engagement. Likes, dislikes, viewership, and comments offer qualitative feedback. Some OTTs also offer chat rooms where viewers can interact, boosting engagement with the show or movie.
• Quality of Experience:
  Viewers expect broadcast quality from online video. They want the OTT service to operate just like television does in India – sit down, turn it on, and it ‘just works’. Also, OTT provides personal space for viewing without the interruption of family members or movie hall audience.

  For instance, nearly 50 percent of respondents from a recent State of Online Video research report said they will stop watching the second time video buffers.
  

  As a result, many companies employing a single, integrated UI that supports their specific business requirements make it much easier for viewers to consume, discover, and share content in India.

  

Obstacles to the OTT and VOD platforms in India:

One of the key network challenges that users in India face is slow speed. The current infrastructure simply doesn’t provide good connectivity. Recent studies show that just a five-second delay in the start of a video turns off most users, many of who won’t come back for another look. Another obstacle is payment mechanisms. The payment methodology in India is still not digital-friendly, which is holding back OTT subscriptions. The ability to have seamless, frictionless digital payment systems is key for growth over the long term.

Most OTT and VOD platforms offer their entire catalog – including premium content – for a free trial, without even taking the users’ card details! In an ecosystem where there’s always one person who decides what everyone will watch on TV, having the ability to control and access what each person watches, is a welcome change.

Despite so many OTT streaming options at their disposal, most Indians prefer to use pirated content. If you are looking to launch an OTT platform with highest piracy protection, have a 30 day free trial at VdoCipher. 

Siddhant Jain

CEO, VdoCipher. Writes about video tech, ed tech and media tech.

www.vdocipher.com/

The post How OTT is Revolutionizing TV Experience in India appeared first on VdoCipher Blog.