Home » Understanding VOD : The Complete Guide 

Understanding VOD : The Complete Guide 

by D F
Understanding VOD : The Complete Guide 

Video on Demand (VOD) as a concept has evolved since the 1990s as people shifted their mode of entertainment from cable and satellite-connected devices to internet-accessible mobile devices.

Covid pandemic further pushed the audience towards VOD consumption as lockdown and quarantine led the public to search for a mode of entertainment as public theaters were not accessible at that time. Due to this reason people started watching series and movies on platforms like Netflix, Amazon Prime, Hotstar, Hulu etc which brought a huge change in consumer behavior and their preferences.

At the beginning of the year 2020 there were 1.32 billion users of VOD and today it is around 1.9 billion. But what’s the reason behind this growing craze? To find that out, we need to know more about Video on Demand.

What Is Video on Demand (VOD)?

Video on Demand or VOD is a self-explanatory concept. Simply put, it is a video content delivery system where viewers can search and choose what they want to watch. It is even possible to skip some parts or rewind and re-watch if you missed any. These videos are playback-ready and are accessible globally in multiple languages, compatible with all devices and browsers, and playable under any bandwidth condition. There are different types of VODs. Like, some for entertainment, others for business communication, online learning, and other use cases. This is why there are several types of video-on-demand platforms.

Is VOD and streaming the same?

People mostly get confused whether VOD and streaming are the same or different. Streaming is one method of delivering VOD service, which is done over the internet. In streaming you don’t have to download the content and the server streams the program on request. For this you need to have an internet connection such as broadband or 4G and 5G telecommunication internet connection. Netflix is the best example of a video streaming platform.

The other method is downloading the video content and then watching it on your device. Platforms such as Youtube allow you to stream as well as download the video to watch it later.

 3 Most Used Video-On-Demand Models

1.Subscription Video on Demand or SVOD

Technically termed as “Revenue Model”. These platforms provide entertainment content in exchange for a periodical subscription. Users can pay monthly, half-yearly, or yearly basis to avail the whole content library. This was first introduced by Netflix and it is currently the biggest SVOD platform in the world.

2.Advertising Video on Demand or AVOD

The second type of VOD model is AVOD which is technically termed as Content Monetization Model.

Here is how the model works:

Content creators monetize their videos which viewers can access for free with ads inserted by companies wishing to market on the platform. The revenue is generated by the company paying for the views on the ads which are played at the beginning of the video or in the middle or end of  the video.There are different kind of ads used in this model such as:

  • Pre-roll: Where the ad appears before the video starts
  • Mid-roll: where the ad is placed in the middle of  the video
  • Post-roll: where the ad appears after the video ends

The ads can also be segregated into skippable, semi-skippable (can be skipped after a few seconds) or non-skippable.The most popular user of this model is YouTube.

  1. Transactional Video on Demand or TVOD

It is also known as the “Content Purchase model” in which you rent or sell content with Pay Per view pricing model. Unlike the subscription model in this the customer is charged for each video or a video bundle.It can further be broken down into two parts.

  • DTR or Download to Rent: the users cannot store the video rather they have to stream it
  • DTO or Download to Own: the user can download and store the file

Amazon Prime Video has recently entered this category and other players such as iTunes and Google play are also to use this model.

How VOD Is Delivered Today?

Nowadays VoD is delivered through a Content Delivery Network (CDN).CDNs are collections of globally distributed servers that provide fast, reliable content delivery to businesses and online audiences.

Let us understand this in a more detailed way by taking Netflix and its popular show Stranger Things as our example.

Netflix is planning to release the latest season of Stranger Things once it is edited and ready to be uploaded to the Netflix server. So before doing that it follows certain steps-

  • First it must be compressed. They compress the file to the smallest size while maintaining the highest quality possible.
  • Then it is encoded/Transcoded. They also encode it at lower bit rates, i.e. in lower quality, to provide a few options in case the viewer’s internet connection does not support higher resolution, giving consumers the flexibility to take advantage of adaptive bit rate, which allows them to continue watching the series in a bit lower quality without being interrupted. These files are also encoded in various formats that are specific to the device (smartphone,computer, or television) on which the content will be played.
  • All of these files are then uploaded to Netflix’s network, and because “Stranger Things” is one of the most-watched shows on the platform, they expect people to watch it as soon as it is released.
  • Then to prepare for this, they ensure that a copy of each episode’s file is replicated across all of the CDN (Content Delivery Network) servers that they have strategically located around the world. These servers serve as a local hub from where the file will be stored when a nearby consumer requests it.
  • The content is saved on multiple edge servers so that when a large number of people attempt to access it, each person can access the server that is geographically closest to them, resulting in lag-free seamless streaming.

So the content has to pass through multiple touch points to reach us. Netflix alone can’t deliver their service. They also need the help of a strong and fast ISP (Internet Service Provider) to provide their content without any hindrances.

Future of VOD

The most popular mode of information intake and amusement has always been video. VOD has come a long way, from TV and DVR to YouTube and beyond, and for good cause. Now businesses look for alternatives and to meet the gap of customization and content ownership , prominent professional grade VOD option providers have come to the marketplace.

However, in today’s world, corporations are reaping the benefits of VOD functionality as well. VOD has taken hold in organizations, with benefits ranging from better marketing to sales and user engagement  To meet such demand it requires the proper infrastructure and ingenuity. Fortifying the access to the service at a more affordable rate is one more challenge and to overcome these obstacles the VOD  platform providers like Muvi have emerged.

Online VOD as a service is exploding. Many new players are entering this industry and it is estimated that this industry will reach $258 by 2029.

One thing is certain: the technology has numerous advantages for both audiences and VOD providers. One should not wait for the trend to reach its apex; and can be a first-mover in the VOD market and benefit from the first-mover advantage.

Start your own VoD platform

Now VOD has become a household name for many. With a bright future one can dive into this market and see the scope to expand its business in video form. For this you need to have some basic components for creating a VOD platform.

Muvi is yet another of the best VOD platform providers. This online video platform is specifically designed to assist broadcasters in quickly and easily creating VOD streaming platforms.

Muvi lets the users quickly and easily launch their own branded video or audio streaming platform. In addition, the platform includes a comprehensive and fully functional website, mobile, and TV apps.

Detailed Features:

  • Customizable HTML5 video player
  • Insightful viewer analytics
  • Video monetization options
  • DRM and security features
  • Powerful content delivery
  • Comprehensive video CMS
  • Transcoding for high-quality streaming
  • Website and Apps for Mobile and TV
  • Live and on-demand video hosting
  • Built-in SEO and marketing tools

Muvi can be used to stream videos live and save the files for VOD delivery. It guarantees that you get the most out of your content. Muvi’s video infrastructure solution combines live and video-on-demand capabilities to provide flexibility and content longevity to a variety of businesses. Sign up for a free trial of Muvi’s video streaming platform today to know more (no credit card needed)!

You may also like

Leave a Comment