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Understanding the business model of TVOD and its advantages
TVOD is the counterpart of subscription video, where consumers pay for the content on a pay-per-view basis. But later consumers gain access to manage the whole VOD platform for a subscribed period.
They used the TVOD model in e-learning platforms like Byju and Udemy and entertainment videos like Netflix, Hotstar, etc.
Normally, on the TVOD platform audience does not want to pay for anything upon signing up for the service. Instead, they will pay an amount based on the video content. Most often this relates to movies and now in recent days, it is applying to series as well as in the case of sports.
TVOD business model
Electronic Sell-Through (EST) – Users gain permanent access to a piece of content by paying once. The nature of this access may vary where Users:
- get access to the video content for a fixed period
- get access to the video for an indefinite period
- can download the video for offline viewing (protected by DRM) and offline viewing can also be restricted to a specific period
Download To Rent (DTR) – Users access a piece of content for a limited time for a smaller fee. For example, after a user rents the video, they have 30 days for viewing it. Once they’ve started watching it, the video will last for 48 hours before their rental period ends.
Marketing Your Transaction Video on Demand business:
TVOD works best for most viewed content where users like to pay for premium packages provided by the video content holder. Hence, social media and email marketing are the best channels to attract those audiences based on their interest.
Education VOD platform (like Byju), in recent times, got most succeeded with this TVOD platform by demonstrating to their potential learners the value added to them. Entertainment VOD platform (like iTunes, and Amazon Prime), on the other hand, becomes most popular by providing highly rated videos on this model, which is not supported by SVOD solutions.
What Are Some Examples Of TVOD Platforms?
Examples of TVOD: iTunes, Amazon’s prime, & Sky Box Office
TVOD services allow customers to rent or purchase digital copies of movies and television shows. Consumers can access this content anytime they want and it will be stored on their devices forever. TVOD offers a variety of different entertainment, from movies to events to TV shows, with individual fees for each item so the customer only pays for what they need. In this way, consumers get access to the content that they want while the provider still gets paid for it.
Also, these most-popular TVOD platforms examples allow it to rule in terms of monetization which allow users to purchase or rent specific pieces of content for a one-time fee. This type of monetization generates revenue but requires high user engagement, as viewers may be less likely to watch certain videos due to the cost.
DRM and TVOD Model:
While selling the content online, the implementation of a Digital Rights Management system becomes mandatory to provide the audience with licensing.
DRMs make compliance with the restrictions by preventing audiences from making illegal copies and sharing and allowing access for a fixed period only. DRM systems manage your user licenses in TVOD platforms, ensuring that only authorized viewers can watch the video content.
TVOD now rules the world with a highly attractive offer that pays the higher growth in business development by targeting the right audience as and when the time changes.
Frequently Asked Question(FAQ)
1. What is TVOD Platform?
TVOD (Transactional Video on Demand) is a model of digital video distribution where viewers pay for access to each individual video or movie. It offers viewers the flexibility and convenience of buying only the content they want when they want it – either in advance or at their own pace.
2. Why Choose TVOD For Your Video Business?
TVOD (transactional Video On Demand) is an ideal way to monetize digital content. With TVOD, viewers pay a one-time fee to watch a single video or series of videos, giving them ultimate control and flexibility over their own content consumption. TVOD also minimizes operational costs for businesses, reduces risk, and allows for more rapid monetization potential from digital video.
3. What are the benefits of TVOD Platforms?
It offers an economical way to purchase movies and other video content. Unlike subscription-based streaming services, TVOD allows consumers to pay only for the videos they choose to watch, giving them greater control over their spending. Additionally, it gives platforms the ability to set different pricing points for different types of content in order to maximize revenue.
4. What is the key difference between SVOD and TVOD?
Transaction Video on Demand is a form of media streaming that requires a one-time payment in order to view the content. It differs from Subscription Video on Demand, which requires a recurring payment to access available content.
5. What are the examples of TVOD Models?
A few popular examples of TVOD services include Google Play, Apple iTunes, YouTube movies, and others.