VOD OTT Difference

OTT or over-the-top is partly a subset of VOD. If you consider a Venn diagram to understand the difference, then it overlaps with VOD when the streaming is limited to internet-based. But when it comes to live streaming, it is not VOD and is only covered under OTT.

Now, What is VOD?

Video-on-demand or VOD is a video delivery mechanism that delivers video content, such as educational videos, movies, and TV shows, directly to customers for immediate viewing. VOD can stream through Cable, satellite, or Internet. Only the internet part comes under OTT, this means Netflix is a VOD as well as an OTT. Cable-operated VOD examples include Xfinity, Hathway, etc. and Satellite based VOD examples include Dish Network, Directv, Verizon Fios, Comcast, Cox, Time Warner Cable, Charter Spectrum, Broadstripe, etc. Also, pre-recorded videos distributed over private network settings for training, communication, and customer services, also come under the VOD head.

OTT on the other hand transmits data over the internet. It doesn’t require users to subscribe to a traditional cable or satellite pay-TV service but you may need to subscribe to the internet service and also for paid content. OTT also includes live streaming and scheduled media programs getting distributed over the internet.

Remember, If the content is via satellite or cable and you cannot watch it whenever you want, it is neither a VOD nor OTT.

VOD Workflow Fundamentals

A Comprehensive VOD Workflow includes:

Content Acquisition:

• Source video content from creators or licensed sources.
• Ensure content is in a format suitable for processing and distribution.

Storage:

• Use robust storage solutions, considering redundancy and backup for safety.
• For internet-based streaming, cloud solutions like S3 buckets can be considered. For cable and satellite, dedicated data centers or storage facilities are used.

Content Transcoding:

• Convert source video into multiple formats and resolutions to cater to different devices and bandwidths.
• Use dedicated transcoding solutions. For internet-based platforms, services like AWS Elemental MediaConvert can be considered.

Content Delivery:

• Internet Streaming: Utilize Content Delivery Networks (CDN) to ensure fast and reliable content delivery to end-users.
• Cable and Satellite Streaming: Use dedicated broadcast equipment to send signals to set-top boxes or satellite dishes of subscribers.

Playback and User Experience:

• Provide adaptive streaming to ensure optimal video quality based on user bandwidth.
• Offer features like pause, rewind, and fast forward for enhanced user control. Also features like multi-language subtitles, chapters, player color, etc must be used wisely to enhance user experience.
• For cable and satellite streaming, consider using proprietary hardware-based players customized for your brand.

User Access and Management:

• Implement authentication and authorization mechanisms to ensure that only subscribed users can access the content.
• Consider solutions like Amazon Cognito for internet-based platforms. For cable and satellite, proprietary access control systems are used.

Metadata Management:

• Store video metadata in robust databases. For internet-based solutions, databases like AWS DynamoDB can be considered.
• Metadata enhances searchability and user experience.

Security:

• Ensure DRM encrypted transmission of content which encrypts the content and also handles the key exchange securely.
• Implement secure access controls to prevent unauthorized access.
• Cable and satellite-based VOD providers need to integrate DRM with the hardware through proprietary ICs and processing hardware.

OTT Workflow Fundamentals

A Comprehensive OTT Workflow includes:

Content Acquisition:

• Source original content or acquire licenses for third-party content.
• Ensure content adheres to regional regulations and licensing agreements.

Storage:

• Store content in scalable and secure storage solutions.
• Cloud storage solutions, such as S3 buckets, are commonly used due to their scalability and global reach.

Transcoding and Packaging:

• Convert content into multiple formats suitable for various devices.
• Package content for adaptive bitrate streaming to ensure optimal quality based on user bandwidth.
• Consider using technologies such as CMAF for multi-format usage.

Content Protection:

• Implement Digital Rights Management (DRM) solutions to prevent unauthorized access and piracy.
• Different devices might require different DRM solutions.

Content Delivery:

• Use Content Delivery Networks (CDN) to distribute content globally, ensuring low latency and high availability.

User Access and Authentication:

Implement robust user registration and authentication systems.

Analytics and Personalization:

• Video analytics can be used to analyze the user experience as well as to protect your content against unauthorized usage and password sharing.
• Offer personalized content recommendations based on user behavior and preferences.
• Monitor user behavior, content popularity, and streaming quality.
• Use analytics to drive business decisions.

Monetization:

• Implement chosen monetization models, whether subscription-based, advertisement-driven, or pay-per-view which are also called SVOD, TVOD, and AVOD.
• Ensure seamless payment gateways for subscription and pay-per-view models.

OTT Video Technology

In the realm of OTT, software-defined media supply chains have emerged as the linchpin, reshaping the broadcasting landscape. Here’s a deep dive into the technology underpinning OTT:

Software-Centric Infrastructure:

Legacy systems, being hardware-based, are infrastructure-centric and rigid. In contrast, OTT thrives on scalable, adaptable, web-centric platforms, achievable solely through software-based systems.

Packetization and Transport:

• OTT operates on the principle of packetization, segmenting data streams into manageable “chunks” for transport via HTTP.
• To counter challenges like latency and packet loss, OTT employs HTTP over TCP/IP.
• This protocol, with its acknowledgment mechanism, ensures packet delivery, retransmitting lost packets as necessary.

Content Delivery Mechanism:

• Traditional broadcasting pushes content, whereas OTT adopts a pull model. End devices request content, and OTT players retrieve and stitch together media chunks, creating a seamless stream.
• This pull model is facilitated by ubiquitous web browser protocols, with the receiver (or end device) controlling the transmission process.
• After Flash players became obsolete, HTML5 players can now handle smooth and secure delivery of video content with all advanced features.

Adaptability and Monetization:

• OTT platforms can host multiple content versions simultaneously. The player determines the optimal version, dynamically switching based on network performance.
• Monetization models include AVOD, SVOD, TVOD, and FAST. Personalized ad content can be interwoven with program chunks, thanks to the file-based nature of OTT.

Standards and Protocols:

• OTT leverages existing standards like MPEG2-TS for media carriage, various video compression schemes (e.g., MPEG-2, MPEG-4, HEVC), and audio formats (e.g., AAC, MP3).
• Unlike the rigid ISO broadcasting standards, the internet operates on RFC documents, with HTTP being foundational.

VOD Technology

Video-on-demand (VOD) technology has revolutionized the way audiences access content, offering flexibility across various platforms, including the Internet, cable, and satellite. It deploys the following technologies,

Multi-Platform Accessibility:

VOD isn’t exclusive to the internet. While web-based VOD platforms are prevalent, cable and satellite providers also offer extensive VOD libraries, allowing subscribers to select and watch content as they wish.

Content Storage and Retrieval:

Central to VOD is the content storage mechanism. High-capacity servers store vast content libraries, ready for retrieval upon user request. Efficient indexing ensures rapid content access and playback.

Streaming Protocols:

• For internet VOD, protocols like HTTP Live Streaming (HLS) and Dynamic Adaptive Streaming over HTTP (DASH) are employed. These adapt video quality in real-time based on network conditions.
• Cable and satellite VOD utilize different protocols, often proprietary to the service provider, ensuring smooth content delivery over their specific infrastructure.

User Interface and Navigation:

VOD platforms, regardless of delivery method, prioritize user experience. Intuitive interfaces, search functionalities, and content categorization facilitate easy content discovery and selection.

Monetization and Content Models:

• VOD services can be free, subscription-based (SVOD), advertising-supported (AVOD), or transactional (TVOD), where users pay for individual content pieces.
• Integration of targeted advertising is also prevalent, especially in AVOD models, enhancing revenue streams.

VOD OTT DRM

Given the on-demand nature of VODs and OTTs, content protection is paramount. Digital Rights Management (DRM) systems are employed through DRM solution providers like VdoCipher which partners with Apple and Google for using their DRM license.

​​DRM offers a systematic approach to copyrighted protection of media content, ensuring secure distribution, and playback of digital video assets. It goes beyond mere encryption by managing the encryption key and enforcing specific content consumption rules set by content owners. This comprehensive system restricts unauthorized access, ensuring that premium content remains exclusive to paying subscribers.

For an end-to-end DRM solution, two core processes are pivotal: content packaging and content consumption. In content packaging, once media is created, it’s encoded and encrypted using a key from the DRM. This encrypted content is then transferred to storage or a content delivery network (CDN). During content consumption, the user’s device requests the content, which is delivered encrypted from the CDN. The device then initiates a license request from the DRM system, which processes this request and sends back a license containing the decryption key and associated rights. Also, key exchange is protected by hardware-backed black boxes for storing the private key.

Prominent players in the DRM space include Widevine (utilized by Google Chrome, Firefox, and Android platforms), and FairPlay developed by Apple for its ecosystems like iOS devices, Apple TV, QuickTime, and Apple Music. These systems ensure compatibility across a myriad of devices, from browsers to smart TVs.

With the adoption of content protection technology like DRM, unification efforts have also increased which is making the system more protected. Earlier, screen capture protection used to be limited to Apple Fairplay DRM but is now available on many of Google’s devices and software.

Advantages of OTT Platform over traditional VOD

OTT platforms deliver content over the internet, making it accessible from any device with an internet connection, anywhere in the world. VOD, especially when tied to cable or satellite, has high infra and distribution costs are also restricted to specific geographic regions or devices. Similarly, to remain updated traditional VOD systems might require significant hardware upgrades. Let us look at the advantages of OTT over traditional VOD through the following criteria.

VdoCipher – Best VOD & OTT Video Solution Provider

We have learned in this article that VOD and OTT need to deploy many technical things to attain a complete workflow for their platform. The technology not only requires implementation but also expertise so that the whole system works in sync and does not become a bug-ridden structure. If we again want to list down, then these are the must-have features a VOD or OTT platform needs to have.

• Upload setup from desktop, Dropbox, Drive, Server, AWS, URL, FTP, and APIs to automate the upload process.
• High uptime cloud storage and processors
• Transcoding
• CDN
• Adaptive bitrates
• Custom video player
• DRM for video protection
• Dynamic watermarking to deter screen capture
• Video Analytics
• Plugins
• SDKs
• APIs
• Device compatibility for Desktop, Android, IOS, and IOS Native apps.
• Not limited to the above but also includes CMAF, Security analytics, easy integration, and much more.

All of the above are features that come with VdoCipher secure video hosting services. With good support and pocket-friendly pricing, it becomes a one and only choice as a video solution partner.

FAQs

What is an OTT Player?

An OTT (Over The Top) Player refers to the software application or embedded module that facilitates the playback of streaming audio, video, and other media content on OTT platforms via a web or app interface.

How do you get a custom player for your VOD & OTT platform?

VdoCipher provides a secure and customizable video player for OTT and VOD platforms. Once you’ve customized the player, you can easily embed it on your website or platform using the embed code for the web and app. The player is responsive and will adapt to various screen sizes, ensuring a seamless viewing experience for your audience. You can also integrate analytics to track viewer behavior and gather insights.

Vishal Sharma

My expertise focuses on DRM encryption, CDN technologies, and streamlining marketing campaigns to drive engagement and growth. At VdoCipher, I’ve significantly enhanced digital experiences and contributed to in-depth technical discussions in the eLearning, Media, and Security sectors, showcasing a commitment to innovation and excellence in the digital landscape.

The post VOD OTT Difference in Workflow Fundamentals and Technology 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.

To launch a VOD platform with the highest security from piracy + seamless experience, Start a free trial at VdoCipher.com.

This short video here explains how to upload, embed, and securely stream videos through VdoCipher.

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.

Such services are getting used by all major OTT platforms like Netflix, Amazon Prime, Hulu, HBO, Hotstar, etc. They either go in for capital-intensive in-house solutions or less expensive outsourced solutions like VdoCipher. For companies like Netflix, in-house solutions give them more control but require large teams and infrastructure with licensing solutions. But for mid-size or early OTTs, a platform provider solution is a necessity.

What does OTT mean in media?

OTT, or over-the-top, refers to delivering movies, series, and TV content via the internet without the need for a traditional pay-TV subscription. This type of content delivery has recently seen a surge in popularity as more and more people ditch their expensive cable packages in favor of cheaper, more flexible online alternatives. People have sought ways to cut the cord and save money on their monthly TV bills. In addition, many OTT services offer exclusive content that can’t be found elsewhere.

OTT (over-the-top) services are delivered outside of traditional cable or satellite providers. This can include streaming services like Netflix, Hulu, and Amazon Prime, as well as specific channels or content providers like HBO Now.

According to Statista, the user penetration in the OTT video segment is expected to reach 53% and the number of users is expected to cross 4215 m users by 2027.

Why OTT?

The cable and satellite industries are no match for the popularity of OTT streaming services. People prefer the flexibility and convenience of streaming and the low cost. OTT is available on multiple devices and can be watched whenever the consumer wants.

OTT services are also the present and future of the entertainment industry. They allow consumers to watch their favorite shows whenever they want and provide new ways of delivering content with interactive features.

Benefits of OTT services

Device independent viewing – With OTT, one can watch their favorite video content at any time on different devices. In a traditional TV setup, viewers have to watch the content at a fixed time slot and on a single device. To watch OTT content, you just need an internet connection or WiFi and a connected device.

Cost-effective – OTT platforms have a huge library of TV series, movies, documentaries, and regional content. All this is available at affordable pricing. In the USA, for example, Netflix pricing goes from $6.99/month to $19.99 for premium video content.

High-quality personalized content – Another good thing about OTT platforms is the availability of high-quality video content. From regional to content covering different genres, viewers can exactly find what they are looking for and only pay for that service or content.

Flexibility – OTT gives viewers the freedom to choose what they want to see and when they want to see. Viewers do not have to wait till a certain time to view their favorite piece of content.

Ad-free experience – Most viewers don’t like advertisements especially when they are watching videos. It interrupts the overall viewing experience. Most OTT gives you the flexibility to opt for an ad-free subscription. Even the advertisements are well-targeted based on the viewer’s online behavior.

A platform for creators and artists – OTT platforms have changed the landscape of the media and entertainment industry. Both artists and content creators have the opportunity to present their content among global audiences and gain popularity.
Regional and multilingual content – According to the FICCI report, the share of regional content will account for 54% in 2024. All OTT platforms have recognized the need to acquire regional markets with original content.

What are the challenges & solutions for OTT?

The challenges of OTT videos are many and varied. Perhaps the biggest challenge is simply getting people to watch your content. With so many options available, it can be challenging to stand out from the crowd. Additionally, OTT video providers are also facing challenges related to content and consumer privacy. Multiple OTT video providers have a competitive market for access to content, and there is a rise in the cases of video piracy and unauthorized video access. Finally, OTT platforms are still relatively new, meaning there is a learning curve for content creators and viewers.

Customer Retention

For the business model of any OTT platform, the audience is a key factor to focus on. Before creating content and expecting to get viewers, knowing your audience and generating content on what your viewers may like is very important. With such an increasing number of OTT platforms, retaining your customers and offering what they prefer is quite challenging.

Poor Technological Infrastructure

Technology is what drives a successful online business and holds true for an OTT platform. From APIs, and integrations to security, keeping all the technical aspects up and running considerably reduces the risks associated with any OTT platform provider.

Security and Video Piracy

The media industry has been facing piracy issues for a long time. Video piracy impacts not only the businesses, economy, and brand reputation but also the livelihood of those directly or indirectly associated with the video industry. The most secure measure in place to combat piracy is Video DRM.

Payment Processing Issues

An ideal payment gateway is one which has effortless payment gateway integration and customers smoothly follow the complete checkout process. Managing online payments, catering to international subscribers, managing multiple payment modes and most importantly security are the key areas to work on.

Buffering and Latency

Buffering and latency affect the viewing experience of users. Buffering causes the video to stop and start again while latency delays the duration between when the signal is sent and received. This causes synchronization differences between the audio and video.

Need for more storage

Video files especially 4K videos take up a significant amount of storage and an OTT platform needs to store a big amount of video files for streaming. They need to choose an OTT platform provider that can easily accommodate the growing demand of storage space.

Password Sharing

It’s a common habit of sharing your OTT login credentials with friends and family. It may lead to your account compromise and access to your personal information. From the perspective of an OTT platform, it leads to revenue loss and there is no record of who accessed your account and a single subscription is used by multiple viewers. OTT providers now limit the number of devices accessing the content and restrict unauthorized access.

Secure Content Storage

Content is the soul of an OTT platform. Any unauthorized access or leak of video content leads to monetary losses as well as a reputation. There is no scope for video piracy and illegal downloads. Therefore, OTT platforms must have robust security in place like DRM encryption, IP restrictions, Domain blocking, secure access, and regular monitoring of the security protocols.

Offline Streaming Security

When OTT content is downloaded from the platform and viewed offline, there is almost negligible control over content usage. When that content is freely distributed, no one will pay the subscription fee to watch it on any platform. To cater to this, OTT DRM technology controls unauthorized downloads and limits the time for which a video is available for download.

Screen Recording Protection

There are various ways to screen-record video content using a camera or microphone. The content becomes available for free although the video quality will be a bit distorted. To discourage this, dynamic watermarking is one such feature that makes a visible or invisible mark on the video to help identify the video source.

Geo-blocking and VPN Detection

Geo-blocking restricts content availability based on a viewer’s geographical location. OTT platforms use this feature to comply with the licensing agreements, enforce geographical restrictions and apply different pricing as per country or continent. Many users use VPNs to bypass the geo-restrictions and access the content in blocked regions.

As solutions, there are services ranging from video creation to marketing, but the most crucial answer is secure video hosting. This is because of the illegal downloads happening across the globe. It endangers the revenue from subscriptions or fees for premium video content. The secure video hosting provider also needs fast video delivery across the world. This is possible by using large-scale CDN providers like AWS CloudFront. Bulk upload, API, and SDKs are also important for an OTT provider looking to scale.

What are OTT Platform providers or OTT service providers?

An OTT platform provider offers online solutions to securely host on-demand or live content and broadcast them over the internet. An OTT service provider provides a platform or service for delivering over-the-top content. They typically offer a suite of features and benefits that allow content providers to reach their audiences directly, without the need for a traditional pay-TV provider. An OTT service provider offers the framework and video players to embed video content to various websites and channels for mass distribution.

Also, among the major features, a dashboard for video analytics and quick access options like embed and API are a must. The platform provider will also provide CDN infrastructure and multiple bitrates streaming for faster and uninterrupted access to videos.

Key features of OTT Platform Providers or Service Providers

• Increased security: an OTT provider serves people worldwide, so it is essential to have security a top priority. Otherwise, the potential for video piracy and other security issues is enormous. To protect their users, OTT platform providers must implement strong security measures. This includes securely encrypting data in transit, limiting content usage to only authorized devices, using strong authentication methods, and ensuring that their systems are constantly monitored for suspicious activity.
• Scalability: OTT service providers must offer scalable plans, so you can increase your content offering as your business grows.
• Flexible Pricing: In a highly competitive market, OTT platform providers must offer flexible and attractive pricing plans to win and retain customers.
• Customer support: Today, customer satisfaction is the key to success. OTT platform providers must offer superior customer support to stand out from the crowd. The provider must provide 24×7 customer support via chat, mail, and more.
• Easy to use video APIs: Video APIs for OTT platforms provide a way for developers to access and control video content. They also allow OTT providers to manage and monitor video usage. Additionally, video APIs can give OTT platform providers insights into how their users watch video content, which can help them improve the user experience.

VdoCipher as complete OTT Platform Provider Solutions

VdoCipher is best known for its DRM-encrypted secure video hosting solutions. The company offers its secure video streaming services to more than 2000 businesses across 40+ countries. Video streamed via VdpCipher cannot be downloaded illegally or by any internet plugin or software. Using Hollywood Grade DRM Encryption, the one used by Netflix to deliver the content on the web securely, Vdocipher protects your premium content from unauthorized usage and distribution. It takes a lot of time and hard work in making video content, and within minutes, it gets pirated online. With VdoCipher, one can not only protect their videos from video piracy but also boost revenue and deliver the content to the users in an easy-to-go way.

Features:

DRM Encrypted Video Streaming – Using Google Widevine and Apple FairPlay DRM, videos are DRM encrypted during encoding. The video can only be decrypted on the VdoCipher media player. This way your videos are secured from piracy and unauthorized usage and distribution.

Google Widevine DRM offers the highest security in Google Chrome, Android, and Chromecast. Microsoft’s Playready delivers video content protection on Windows platforms. Video creators who wish to stream premium videos on iOS and Safari require Apple’s FairPlay DRM license.

Dynamic Watermarking – Dynamic watermarking allows the insertion of watermarks into digital content like videos in real-time. This watermarking can be used to protect against unauthorized copying and distribution of digital content, such as video, audio, and images. Adding text to video using Dynamic watermarking deters screen capture and protects the video content. You can add viewer-specific moving/static watermarks with email, user id, IP, time stamp, and more.

IP and Geo-based Restrictions – IP geo-restriction is a way of restricting access to online content based on the geographic location of the user’s IP address. This can be used to prevent users from accessing content unavailable in their country or restrict access to certain types of content to only users in specific countries. Through VdoCipher API/Dashboard, you can easily configure any IP and country restrictions on your video content.

Session time restrictions – With our multi-DRM APIs, you can configure the session duration for playback during license generation. This proves very useful for sensitive content.

Rental constraint for offline files – It is possible to allow viewers to download an encrypted video version to their Android, iOS, or Chrome devices. The video can be made to expire after a specific time by specifying a rental duration. The access token also needs to be specified to allow license persistence. Our Android SDK enables managing downloads to and playback of offline videos.

Smart HTML5 Video Player – VdoCipher Smart HTML5 Video Player offers Adaptive Multi-bitrate Playback, Multi-language support, playback speed change, dynamic player controls, and much more like.

• HD Streaming even at low bitrates
• Pre-available player themes
• Easy embed options using iFrame, plugins, and API
• Video Analytics
• Secure Downloads on Android
• Custom Overlay and Tracking with JavaScript API

FAQs

What are the benefits of OTT video?

Consumers love the flexibility and convenience of OTT videos. They can watch their favorite shows at any time and from any device. OTT video also provides new ways of delivering content that fall outside traditional broadcast models.

How does OTT video differ from broadcast and cable television?

Traditional broadcast television is watched live and is provided through a closed system. Consumers must subscribe to a cable or satellite provider with limited content. OTT video is delivered over the Internet and is consumed through an open system. OTT services are typically much cheaper than traditional cable or satellite TV packages. They offer a much more comprehensive range of content, including many niches and international titles that are not typically available through conventional broadcasters. OTT also gives users more flexibility in how they watch content, as they can watch shows and movies on demand or even download them offline.

What are the potential downsides of OTT services?

With some great options out there, it’s essential to be aware of the potential downsides of OTT services. First, since these services are delivered over the internet, they can be susceptible to outages or slowdowns. Second, not all OTT services are created equal – some are of better quality than others. Finally, most OTT services require a paid subscription, which can add up over time. Overall, OTT services are a great way to watch TV without paying a fortune.

Vishal Sharma

My expertise focuses on DRM encryption, CDN technologies, and streamlining marketing campaigns to drive engagement and growth. At VdoCipher, I’ve significantly enhanced digital experiences and contributed to in-depth technical discussions in the eLearning, Media, and Security sectors, showcasing a commitment to innovation and excellence in the digital landscape.

The post OTT Platform Provider for Video Solutions and Service appeared first on VdoCipher Blog.

According to Statista, by 2027, the revenue in the VOD segment is expected to have an annual growth rate (CAGR 2022-2027) of 10.72%, resulting in a projected market volume of US$157.90bn.

What is VOD or Video on Demand platform?

It’s not that VOD is a new era term; it has been around for many years, but it has only become widely available in recent years. This is attributed to the advancements in broadband technology. In the early days of VOD, users had to wait for the entire video to download before they could watch it. Depending on the file size and the user’s connection speed, this could take minutes or even hours. Now, with broadband speeds much faster than they used to be earlier, users can start watching a video immediately after selecting it. This has become possible through adaptive streaming, which allows the video to be played back at a quality matched to the user’s internet connection speed.

Due to advancements in network speed, bandwidth availability and video compression standards and accelerating user demand, video streaming over the Internet (Video On Demand) has quickly risen to become a mainstream reality application over the past two decades. The markets where once “traditional” (free-to-air, cable, satellite) television was dominating, i.e. linear audiovisual media services, nowadays see strong growth of various video-on-demand (VoD) services, i.e. nonlinear audiovisual media services, including both Paid-for VoD like Netflix/Amazon Prime and Advertised-financed VoD like YouTube.

Note: Linear audiovisual media services are Television broadcasts delivered by a media service provider at a scheduled time and watched simultaneously by viewers. On the other side, nonlinear audiovisual media services include users’ selected catalogue offered by the media service providers to watch at their convenience.

Types of VOD Streaming Services

There are three types of VOD Streaming Services, namely, by subscription system, also known as subscription video-on-demand (SVOD); by the per-watch system, or transactional video-on-demand (TVOD), and advertisement-based system, or commonly mentioned as ad-based video-on-demand (AVOD).

Subscription On Demand (SVOD) – For a recurring daily, weekly, or monthly rate., subscribers may have unlimited streaming to a licensed catalogue of content for the duration of their active subscription term. The subscription period may be as short as one month or as long as one year. SVOD is somewhat similar to traditional television packages. The users are free to consume any content they wish at the same monthly price. They also do not have any obligation to prolong the subscription. Netflix and Amazon Prime are some SVOD platforms.

Transactional video on demand (TVOD) – TVOD is just the reverse of SVOD, also known as the Pay-Per-View (PPV) model and offers two options in its pay-per-view scheme. Firstly, the audience can purchase the package to have permanent access to the content, known as Electronic Sell Through (EST). Secondly, the users can pay the fee and download the content for a limited time; download to Rent (DTR).

Advertising-based Video On Demand(AVOD) – AVOD is nearly free, but the users need to consume the advertisements as the cost of production fees and hosting. Businesses pay to have their ad played before a video is watched. This is a way for companies to generate revenue from advertising by reaching a large audience with their message and potentially generating leads or sales from viewers interested in what they have to offer. Examples are YouTube and Hulu.

In 2021, the Video Streaming (SVoD) segment in the Video-on-Demand market worldwide generated the highest number of users at a value of approximately 1.1 billion users. According to the Statista Digital Market Outlook estimates, the Video Downloads (EST) segment generated the least number of users at 705.9 million.

The need for security as VOD Streaming Services

Video streaming is currently ruling traditional multimedia through services like Netflix, Amazon Prime and Hulu, providing millions of users worldwide with paid subscriptions to watch VOD content. Also, we have seen a rise in the number of services illegally sharing premium video content on the web for free. This has given ground for the market of illegal downloads and content distribution regardless of ethical or legal involvements.

When people choose to watch pirated shows and movies rather than a VOD platform, the platform ultimately loses revenue, affecting the content creators and their production processes. According to Statista, the global online T.V. and movie industry expects to witness a 51.6 billion U.S. dollars loss due to video piracy in 2022. The same market sector suffered a revenue loss of nearly 37 billion U.S. dollars in 2018.

Video Piracy even leads to security threats. Pirated content may contain malware, trojans, and viruses. Here, piracy harms content creators and owners and risks the consumers benefitting from it. The various reasons contributing to video piracy are credentials sharing, using tools for content downloading, simulcasting, trial fraud and more.

Securing VOD platforms against piracy in the near future seems challenging owing to the widespread reach of pirated content and difficulty detecting video pirates. Despite this, using certain measures and adopting new technologies and strategies can discourage, prevent and minimize piracy.

Use of DRM encryption service for VOD platforms

Digital Rights Management (DRM) is used by content creators and distributors to restrict the way in which their content is used, transferred, and stored by users. DRM workflow begins with content encryption. When a user clicks play, the video player sends a key access request to the license server. The server determines whether the video player and device are authorized before giving a response containing a decryption key. After completing the authentication process, the player decrypts the video and starts video playback. This all happens instantaneously.

The main DRM technology systems used are Google Widevine and Apple Fairplay to support the most popular browsers.

Apple FairPlay – Apple’s FairPlay DRM system protects music and other content purchased from the iTunes Store. FairPlay combines digital rights management (DRM) and encryption to prevent unauthorized copying and playback of iTunes Store content. FairPlay is built into the iTunes software and is used by the iTunes Store to encode music, videos, and other content.

When you purchase music, movies, or other content from the iTunes Store, the content is encoded using FairPlay. This encoded content is played on authorized devices like your iPad, Apple Watch, Apple T.V. and personal computers. To play FairPlay-protected content on your iPod, you must first authorize your iPod with your iTunes Store account. Once your iPod is authorized, you can sync your FairPlay-protected content to it.

Google Widevine DRM – Google’s Widevine DRM is a leading platform for delivering protected premium video content at best possible quality to the most number of devices and browsers. It has two versions to secure video media: Widevine Modular and Classic.

• Widevine Classic – The earlier version of Widevine to support old Android versions (up to Android 5.1), supporting .wmv format.
• Widevine Modular – The latest current version of Widevine with support for MPEG-DASH, CMAF, HLS, and ABR video formats, including Common Encryption (CENC).

Other Security features apart from DRM used by VOD

Dynamic Watermarking – Similar to watermarking, viewer-based dynamic watermarks contain user information like user_id and I.P. When visible, it has been found to be a deterrent factor in video piracy. Such watermarks also act as a unique identifier for accessing users. They are also helpful in preventing screen capture or screen camera recording. Examples include visible string with text and numbers that keeps floating over the screen during Live sports telecast. VdoCipher provides a viewer-based dynamic visible form of a watermark.

Domain Restriction/Authentication – Many a time, VODs don’t want their videos to be played on other specific domain names. For the same, they need to restrict any incoming request to your videos from that domain. VOD Streaming Services providers usually do provide mechanisms to restrict single or multiple domains.

Offline Encrypted Downloads – There are needs when VODs need to provide a way to download videos. This often happens on mobile devices like Android having a low bandwidth supply. Thus to provide a continuous and bandwidth-saving experience to the user, offline downloads are a viable option. However, this also brings the risk of illegal and unauthorized distribution of the video content. To prevent this, Vdocipher uses Encryption and time-expiration techniques. You can specify the time duration of validity for which the offline download license would be available for playback. Beyond the duration, the license would expire, and the downloaded file would be no longer accessible.

Geo Restriction – Geo restriction is another kind of restriction for video security. These restrictions are used to restrict playback on a particular set of I.P.s or Geo locations. Geo restriction ensures that all requests coming from a defined set are blocked.

How can VOD prevent Screen Recording?

If you are a VOD platform user, you may have encountered a situation when you try taking a screenshot or screen recording, and all you get is a black screen. You may still be able to see captions but not the content. Here, the screen capture prevention mechanism depends on the DRM security level for various devices and machines.

Platforms like Hulu and Netflix employ multiple DRM systems because users access video content through the app and many different browsers and operating systems. VOD platforms use DRM to prevent content piracy. Without these restrictions, there are chances of some users creating copies of copyrighted content for unauthorized redistribution, selling or pirating through other platforms.

VdoCipher secure video DRM encryption is similar to that of Netflix and protects your premium content from online piracy. For screen capture, the web browser communicates with the video players with EME invoking DRM. When a screenshot command is passed, it’s overridden through DRM secure playback. It results in black recordings or screenshots. The capabilities of EME using HTML5 player invokes the underlying DRM encryption for secure video streaming.

How can a VOD platform implement Video DRM with ease?

Different video content is distributed over the OTT platforms, such as movies, T.V. series, anime, original content, etc. Distributing different audiovisual contents over VOD and other platforms is subject to copyright and related rights. The majority of OTT content is not at all encrypted. DRM enables content owners and creators to manage usage rights over their content. The usage rights are a set of privileges the consumers can practice on digital content. Examples include a copy permit, pay-per-view, a one-month rental, etc. Like VOD, e-learning platforms require their content to be distributed only among the authorized consumer. This is easily possible with a DRM encryption layer provided by DRM platforms like VdoCipher for secure video hosting.

VdoCipher offers Hollywood Grade DRM Encrypted video streaming and a secure hosting platform to protect premium video content for OTT and VOD platforms, Elearning platforms and more. VdoCipher also provides a whole set of features like,

• Illegal Download Prevention and Screen Capture Blocking through multi-DRM support.
• IP and Geo-based whitelisting and blacklisting with Widevine DRM
• AWS Infrastructure for scalability and the best uptime
• CDN for fast and across the globe delivery
• Backend Licensing & Authentication
• Multiple Quality Bitrates
• Analytics & Usage Reports
• CMS Plugins for WordPress etc
• API and SDKs

FAQs

Who launched the first Video on Demand service?

Kingston Communications, in 1998, became the first UK company to launch a fully commercial VOD Streaming Services and integrate broadcast TV and Internet access via a single set-top box using IP delivery over ADSL.

What is ADSL (Asymmetric Digital Subscriber Line)?

It is a digital subscriber line technology for fast data transmission on existing copper wire telephone lines to homes and businesses at a high bandwidth. Unlike regular dial-up copper telephone line service, ADSL provides continuously available, always-on broadband connections. ADSL is asymmetric as it uses most channels to transmit downstream to the user and only a tiny part for uploading information from the user.

What are the benefits of using VOD Streaming Services?

VOD Streaming Services offer a convenient way to watch videos on demand. They also provide a variety of content that can be accessed from a variety of devices.

What are the benefits of SVOD?

SVOD services offer a convenient way to watch your favourite shows and movies without buying or renting individual titles. They also often include a wide variety of content, from classic films and T.V. shows to new releases and original programming.

Vishal Sharma

My expertise focuses on DRM encryption, CDN technologies, and streamlining marketing campaigns to drive engagement and growth. At VdoCipher, I’ve significantly enhanced digital experiences and contributed to in-depth technical discussions in the eLearning, Media, and Security sectors, showcasing a commitment to innovation and excellence in the digital landscape.

The post VOD Streaming Services Provider with secure Video on Demand Solutions appeared first on VdoCipher Blog.