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Video on demand (VOD) is one of the most popular fields of online content delivery. So if you’ve heard about it, you may be wondering: What is VOD, what does VOD stand for, and what does VOD streaming mean?

VOD streaming stands for Video On Demand streaming and it is the new world’s way of content delivery. In YouTube’s survey, 1 in 2 Gen Zers and millennials say “they don’t know how they’d get through life” without video

According to Cisco’s Annual Internet Report, the number of internet-connected devices will be more than triple the global population by 2023. Cisco also forecasts that 70% of the world will own mobile devices by then and the demand for 4K / UHD content will be doubled.

After Covid-19 has changed our lives, video has become more popular than ever. As the need for all kinds of video grows, so do the opportunities in the market.

When we talk about VOD streaming or VOD platforms, we immediately think of entertainment-oriented giants such as Netflix, Hulu, Disney+, and Amazon Prime. However, on top of entertainment, we started seeing a horizontal adoption of VOD streaming across many industries. Companies want to stay engaged with their audience through making important company or industry events, interviews with key influencers or executives, or announcements to be available for those who weren’t able to join live. Apart from this, VOD streaming has become an indispensable tool for companies to constantly educate their audience. So, what is VOD? Let’s start learning quickly!

What is VOD streaming (Video On Demand Streaming)?

vod streamingLet’s dive into the question of what is VOD streaming. As we mentioned above, VOD stands for Video On Demand. Video solution that provides the freedom to click and play video content without the restrictions of a broadcast program or requiring a physical copy (like DVDs or Blu-ray Discs) of what you are viewing. 

Today, VOD streaming refers to any video content that’s distributed to viewers via streaming on internet-connected devices. Your favorite TV series on Netflix or Prime or videos you watch on YouTube are included in this category. Also, downloaded files and recorded DVR contents can be counted in this category. 

What is a Video On Demand Platform (VOD Platform)?

what is vod streamingA Video On Demand (VOD) platform is a system that hosts and shares content online via the internet.

Some popular VOD platforms include: 

  • Netflix
  • Disney+ 
  • Hulu
  • Amazon Prime
  • HBO Max

These are consumer-focused platforms that broadcast only their own content, and they are not open to user-generated content. Ant Media Server can help you to set up a VOD platform of your choice.

There are some reasons why audiences love VOD platforms. They can watch videos instantly versus having to wait for an entire file download to complete. VOD servers stream only the information needed at the time of the request. Users can fast forward, rewind, pause, and restart anytime without excessive buffering or reductions in video quality or performance.
In short, video on demand platforms give users the ability to watch the content they want when they want it. That is a key factor in creating an unforgettable user experience.

What is the Difference Between Live Streaming and VOD streaming?

live streaming vs vod streaming solutionsVOD streaming is basically a streaming method for pre-recorded video content. On demand content can be played whenever the viewer chooses. It gives video producers the opportunity to get higher monetary returns out of their productions. It doesn’t mean live streams can’t become VOD. Also, they can record live streams to share recorded videos later as a VOD. Recording content for later use allows maximizing reach and more completely monetizing content by re-streaming via VOD streaming.

You can choose to leverage both live streaming and VOD streaming for your business, but choosing a platform that can use both delivery methods is an advantage. By choosing a platform that allows both types of streaming, you save money, time, and effort.

What is OTT?

OTT stands for Over-The-Top and it is described as a media content delivery method over the internet rather than via traditional cable and satellite services.

It allows viewers to consume content wherever and whenever they want completely independent of the device type.

The term “OTT” often refers to video content but can also apply to audio messaging or VoIP calling solutions.

OTT is an attractive option for organizations looking to add value to their brand. Broadcasters can offer content to their audience by creating a new income model. Brands can create their own original contents that can be protected with exclusive distribution rights.

How Does OTT Work?

One of the inherent problems with serving TV content over the internet is being able to contend with the wide range of network performance. Performance depends on what speed the connection will support (e.g. 4g, 5g, WiFi), the display device (e.g. phone, smart tv, pc, laptop), and then how many network hops there are between the provider and the viewers

At a high-level, OTT systems and technologies are designed to minimize the impact these parameters have, by providing a “best-effort” approach to serving up the content. That is, OTT technology will adjust to the network performance of the entire streamşng flow in real-time so that the video and audio are delivered without buffering. This buffering is extremely frustrating for the viewer and may cause them to abandon the content or platform.

What is the Difference Between OTT and VOD Streaming?

VOD and OTT are quite similar, sometimes even expressed as the same, but not always. This is because OTT defines the distribution model (video content sent over the internet) and VOD as the consumption model (video content that can be played on demand). Moreover, OTT deals with consumer media services while VOD covers all industries and sectors.

Video On Demand Market Statistics 2022

Video on demand businesses are already quite popular. You probably have at least one VOD platform membership too. Looking at the statistics below, it’s clear that VOD will remain popular in the future.

Some VOD statistics:

  • Revenue in the Video-on-Demand segment is projected to reach US$98.69bn in 2022.
  • Revenue is expected to show an annual growth rate (CAGR 2022-2026) of 8.29%, resulting in a projected market volume of US$135.70bn by 2026.
  • The largest segment is Video Streaming (SVoD) with a market volume of US$82.43bn in 2022.
  • In global comparison, most revenue will be generated in the United States (US$40,760.00m in 2022).
  • The average revenue per user (ARPU) in the Video-on-Demand segment is projected to amount to US$50.79 in 2022.
  • In the Video-on-Demand segment, the number of users is expected to amount to 2,298.2m users by 2026.
  • User penetration will be 25.5% in 2022 and is expected to hit 29.2% by 2026.

What are the advantages of a Video on Demand business?

Video on Demand is a booming sector in 2022. Revenue in the Video-on-Demand segment is projected to reach US$98.69bn at the end of 2022. Some giants like Netflix and Disney+ dominate the sector.

For viewers, Video on Demand is a convenient way to watch shows and movies. No need to check what time shows come on or record for later. You can easily pick your favorite program and watch as much or as little as you like.

Yes, it is really good for the viewers. For businesses, VOD streaming also means consistent revenue and monetization method.  Between ad-supported networks (AVOD) subscription-based networks (SVOD) and everything in between, you can generate lots of revenue from audiences of all sizes. Keep reading to learn how to monetize your VOD platform.

What does the future of Video on Demand look like?

ant media server vod streamingAs the tastes and needs of consumers change over time, one thing that does not change is the growing demand for value and ease of use. This is the reason why OTT and Video On Demand will remain popular for a long time.

In the coming years, we expect streaming businesses to expand and diversify. Right now the world is focused on streaming giants like Netflix and Disney+, but that could be changed soon by entrepreneurs like you.

Thousands of smaller video businesses and startups are taking shape. With technological advances and agile mindsets, we may see many of these businesses replacing the giants we now use.

Monetization Models for VOD Streaming

Presenting a movie, documentary, or any other recorded video to the audience can be very profitable. You can convert your content to cash using VOD monetization models. Let’s take a look at the 3 most popular VOD monetization models.

SVOD – Subscription Video on Demand

SVOD stands for subscription video on demand. VOD streaming platforms offer services for a membership fee.

This model became very popular, especially during these times when we are locked in our homes due to Covid-19. Viewers’ favorite features are the freedom to watch the content they want, whenever they want, without ads.

One of the best implementations of this model is Netflix. With Netflix, viewers have the right to consume unlimited content for a certain fee. 

AVOD – Ad-Based Video on Demand

AVOD stands for ad-based video on demand. This model is very similar to the tradition of TV understanding. VOD streaming platform generates revenue with ads.

Ad-based VOD is the most popular model implemented in the Asia-Pacific region. We said it is very similar to traditional TV understanding, but in this model, it is possible to present target-oriented advertising. The platform, which knows the audience closely, creates a more effective campaign by offering the most suitable ads for them

We already have said that VOD streaming platforms are on the rise in the world. Many different VOD platforms offer different content. Viewers who want to consume all of these contents have to be a member of all platforms separately. VOD streaming platforms such as Netflix and Amazon Prime, which want to turn this situation into an opportunity, have started working to offer an ad-based model to the audience in addition to the membership model. 

TVOD – Transaction Video on Demand 

TVOD stands for transactional video on demand. It is described as pay-per-view. VOD streaming content that viewers stream and access specific content not available elsewhere and to everyone. It is also known as PVOD – premium video on demand.

How to choose the right video on demand service

Creating Video on Demand apps and starting a VOD business can be complicated without a good partner. There are quite a few things to consider and deal with. And many consumer-focused services fail to meet these needs. The following features are essential.

White labeling option: You need to use your own brand logos, colors, and images to make the brand stand out.

API and SDK access: You should easily integrate existing workflows or build your own OTT platform and mobile apps from scratch.

Multi-user access: You should create specific access controls and user permissions within your audiences and for each group. Use built-in protections to ensure only the allowed audience can view (or share) your content.

Live stream recording: It’s a great way to make live streams even more useful. You should be able to capture live streams as they play and automatically save them to your VOD library.

Scalable content delivery: It is very important for those who want to reach very, very large audiences. You need to scale your viewers easily and offer multiple viewing options for a wide variety of devices.

After considering them, you can find some service options. But also from a business perspective, there’s a lot more to consider.  In fact, you’ve already taken the first step by visiting Ant Media.

Ant Media’s Video On Demand streaming solutions provide reliable, flexible, and scalable solutions for any usage scenario and any industry ranging from media to healthcare, education to entertainment. With Ant Media Server, you can start setting up your own VOD platform for free right away.

Get started for free with Ant Media Server Pay As You Go plan.

Live Streaming and Video on Demand streaming

The best thing about live streaming and video on demand streaming is that they don’t have to be used separately. The most successful model for publishers is the mixed model, which uses both types of streaming. You can create live streams to interact and adapt to audiences and use VOD to reuse recorded content. All this saves costs and improves service at the same time.

Adding live stream content to your video on demand platform allows viewers to consume content 24 hours a day. Your VOD streaming platform allows them to consume available media whenever and wherever they want. Your target audience gets unforgettable experiences with the convenience and variety they demand.

Categories: Tutorial

Hamit Demir

As a B2B tech marketer, Hamit Demir works as a solution expert at Ant Media. He has experience in SEO, Demand Generation, Paid Search & Paid Social, and Content Marketing. He spends his free time learning new things. He loves to talk about streaming and especially WebRTC.

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