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Saturday, May 18, 2024

Benefits of Video on Demand Streaming: How Does it Work?

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The consumption and use of video content in the last few years have exponentially grown. In the contemporary period, people find it more convenient to watch videos for learning and entertainment purposes. This has given a major push to VOD streaming services. Video-on-demand service is growing popular among the audience as it offers them more flexibility in watching the content of their liking at a preferred time.

The global revenue from on-demand streaming services is expected to grow by over $126.5 billion by 2025. The video-on-demand segment is classified into 3 categories, video streaming, video download, and pay-per-view model. It is estimated that the revenue generated from the pay-per-view model will be around 867.6 million by 2025. Live streaming is among the fastest-growing segments that grown by over 93% in 2019.

Understanding VOD streaming & What is VOD streaming

The Video on Demand streaming model takes a unique approach to delivering content directly to the users without any broadcasting constraints. It leverages the internet to deliver the content directly on streaming devices. The users can have access to the content whenever they like and it doesn’t restrict them from accessing content at their preferred time.

One of the major drawbacks of traditional cable/satellite TV was that it had a fixed schedule for airing the programs. This rigidity restricted many viewers from watching the content in their leisure time. Accessing content using a streaming video-on-demand service is as easy as clicking on the link and watching the content.  

what is VOD streaming

Major advantages of video streaming services

VOD streaming services have proved to be a game-changer for the media and entertainment industry. It gives users full flexibility to watch content whenever they like without any timing constraints. This has made it quite popular within a relatively shorter period and it has captured a fair share in the market. Let’s dig deeper into the major advantages of video streaming services in the contemporary world.

Wider audience reach

Using video streaming services, you easily reach a wider audience base on numerous streaming devices. Viewers can easily access the content on multiple devices including smartphones, laptops, tablets, PC, etc. Using VOD platforms, one can even reach a global audience since the global audience can easily access the content using the internet.

Offers viewers with the desired flexibility

Video streaming services offer users full flexibility in how and when they want to watch the content. The audience has full control over their viewing experience. They can pause, play, rewind and forward the stream at their convenience.

Improved user experience

VOD streaming platforms aim to provide the utmost convenience to users by offering them control over all aspects of their experience. It is more convenient for users to view content on handy devices while traveling. They can stream content using multiple devices and can cancel or upgrade their subscription at any time. It also helps to provide personalized recommendations to viewers based on their browsing history on video on demand platform providers.

Easy and affordable installation

It is easier to install video streaming services as compared to traditional cable TV services. In addition to this, it is also very affordable and one can easily cancel their subscription at any time depending on their needs. Unlike cable TV, users can easily manage their subscriptions using their computers.

Detailed analysis

Video streaming services are usually accessed using personal devices. This gives the service provider detailed insights into the user’s preferences and browsing history. One can use these insights to create better content and market their offering in the right manner. It also helps greatly in offering a personalized experience which is the key to winning in the contemporary landscape.

Easy monetization of on-demand content

There are multiple ways to monetize your video content using VOD online streaming platforms. Some of the most commonly used ones include the transactional VOD model, subscription VOD model, advertising VOD model. You can easily choose one depending on the type of content you are offering and your target audience profile.

Ways to Monetize Your VOD Streaming Content

There are multiple monetization methods available for content creators and broadcasters to monetize their content using VOD platforms. Choosing the right monetization method plays a crucial role in the success and popularity of your video-on-demand solution. Some of the mainstream monetization methods are mentioned below.

1. Subscription video-on-demand

The subscription video-on-demand also popularly known as the SVOD model is used by the leading players in the video streaming space. The subscription model charges users a monthly or annual fee, to access their content library and stream content. There are different types of subscriptions to cater to the needs of a diverse audience base.

2. Advertisement video-on-demand

The advertisement VOD model doesn’t charge the users directly for the content they are streaming. The users have free access to the content but they have to watch the advertisements being shown on the platform in mid of their content. Most users prefer to watch free content which poses a challenge for the platform owners. The advertisement VOD model bridges this gap by providing a revenue source to the content creators. Also, read the difference between AVOD vs SVOD.

3. Transactional video-on-demand

The transaction video-on-demand model is also popularly known as the pay-per-view model. VOD platforms using this monetization method charge users for every content they watch. The users are given either a lifetime or a limited period of access depending on the plan. It provides more flexibility to the users since they are only paying for the content they specifically want to watch rather than having access to a library of content.


The video-on-demand streaming services are growing popular among the audience due to their convenience to users. The user has full control over their viewing experience and they can watch the content at any time and place. There are multiple ways to monetize VOD content including SVOD, AVOD, TVOD, etc. Choosing a reliable VOD platform provider plays a key role in the success of your VOD streaming app business.


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