A Brief Insight Into VOD Streaming Services And Monetization Models

Posted By : Priyansha Singh | 18-Aug-2021


A Brief Insight Into VOD Streaming Services And Monetization Models


VOD or Video on Demand is the future of TV broadcasting. Recent research suggests that video on-demand streaming has surged almost 155%, with an approximate viewing time span of 17.1 minutes per session. 

While the overall demand for VOD streaming services are on the rise, there are still a lot of unanswered questions around video streaming and online video delivery solutions such as:

  • What is Video on Demand?
  • How to get started with video streaming app development?
  • How can content creators and business owners benefit from VOD streaming solutions?

In this article, we will discuss everything about Video on demand and different types of monetization models associated with it. 

VOD Streaming Services
What is VOD?

VOD is the abbreviation for ‘Video on Demand’. It is a way through which users consume videos and digital content via rentals, subscriptions, or purchases. While traditional TV made people view content on a pre-set schedule, VOD streaming allows users to access videos on their own devices, platform, or time.

As the number of internet-connected devices is expected to grow and amplify three times the global population by 2023, the demand for digital content will also double. This is the primary reason why VOD is growing massively in terms of popularity.

Nevertheless, Over-The-Top or OTT video streaming solutions, which is the evolved version of digital streaming, allows media and content to be distributed and monetized easily. OTT enables you to directly stream online and on any device. With that VOD streaming has been a lot more accessible and convenient for viewers across the globe. Moreover, the possibilities of monetization and content distribution through VOD streaming are endless. 

Types of VOD Monetization Models

On-demand video streaming services come in many types and forms. 

You can use each model to create free videos with ads, a video subscription channel, or on-demand videos for premium and special events. Below are the types of VOD streaming solutions:

  • Subscription Video on Demand (SVOD)
  • Advertising-based Video on Demand (AVOD)
  • Transactional Video on Demand (TVOD)

Let’s take a closer look at the various VOD types.

Also Read: Decoding RTMP Ingest And Its Role In Live Video Streaming Services

SVOD is the premium layer of video on-demand services. This is where streaming platforms such as Disney+ and Netflix rest. Subscription-based video on demand is possibly the best example of a VOD platform that can be leveraged to create recurring revenue streams.

As viewers buy subscriptions to view and access content (either annually or monthly), it is vital for businesses to devise a steady revenue channel while subsequently producing content for their targeted audience.

SVOD enables subscribers to:

  • Access ongoing media content or classes that can be streamed over a period of time
  • Opt-out or join without the hassles of long-term contracts that satellite services or traditional cable require
  • Select digital media content from a vast pool of libraries that can rightfully be streamed over and over again. 


Advertising Video on Demand is different from the other forms of VOD since it is either free or provides viewers with cost-effective ways to consume content.

For instance, let’s analyze this scenario and see how it works. Businesses create digital content that users can stream and view whenever they want. However, the videos also feature ads to garner revenue from advertisers. AVOD model is an exceptional way to step into VOD because it:

  • Offers less barrier for entry for users who intend to watch your content since it is free
  • Can be viewed without using traditional cable or satellite subscriptions
  • Is relatively simple to scale as your audience and user-base grows

The most widely used platform that rests on AVOD model for revenue generation is YouTube. However, we have analyzed that this approach is best suited for content creators with a very large customer base. If you are entry-level and just getting started, we recommend going for the SVOD monetization approach.

Moreover, with the rise of paid sponsorships, multi-tiered subscriptions, and influencer marketing, AVOD can be used to make a lot of money.


Transactional Video on Demand is preferred by digital media creators who want to rent out or sell premium videos and who do not favor getting locked into a subscription package. 

Digital media and content creators can promote particular “one-off” events or releases that subscribers can purchase on top of their current subscriptions. TVOD streaming and products work where SVOD does not as it:

  • Enables you to release timely and exclusive content for extra revenue
  • Offers you the ability and freedom to list single series, videos, or feature films

As it allows viewers to purchase or rent digital content and videos, it is also a great way for content creators to amplify their audience base without having to sell any annual or monthly subscriptions. 

TVOD also has another category- live pay-per-view. They are usually events such as UFC fights or large conferences, wherein viewers pay a one-off charge in order to stream any live event.

What do you think of the three VOD streaming services and monetization models? If you are looking for live video streaming services or VOD app development solutions, feel free to drop us a line. Our experts will get back to you within 24 hours.


About Author

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Priyansha Singh

Priyansha is a talented Content Writer with a strong command of her craft. She has honed her skills in SEO content writing, technical writing, and research, making her a versatile writer. She excels in creating high-quality content that is optimized for search engines, ensuring maximum visibility. She is also adept at producing clear and concise technical documentation tailored to various audiences. Her extensive experience across different industries has given her a deep understanding of technical concepts, allowing her to convey complex information in a reader-friendly manner. Her meticulous attention to detail ensures that her content is accurate and free of errors. She has successfully contributed to a wide range of projects, including NitroEX, Precise Lighting, Alneli, Extra Property, Flink, Blue Ribbon Technologies, CJCPA, Script TV, Poly 186, and Do It All Steel. Priyansha's collaborative nature shines through as she works seamlessly with digital marketers and designers, creating engaging and informative content that meets project goals and deadlines.

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