Nowadays, people watch content in a more flexible and on-demand manner. When they search for “what is VOD“, they are looking for video streaming services that allow them to watch videos at any time without following a traditional TV schedule. VOD stands out because it lets viewers choose what, when, and how they want to watch content.
The Video on Demand (VOD) market is growing rapidly. With more people having internet-connected devices, streaming has become more affordable and convenient. Viewers prefer the flexibility of watching content on their own schedules. Major platforms like Netflix, Disney+, Hulu, and Amazon Prime Video lead the way, but there are also niche platforms for fitness, education, and corporate training. Whether you create videos, run a business, or just enjoy watching, understanding VOD is essential for navigating today’s media landscape.
VOD is not limited to movies and TV shows; it’s also used for educational content, fitness programs, and employee training. This versatility allows people to watch videos whenever they want, even multiple times if needed, making it a powerful tool in various fields.
Here are some important points that show how this trend is becoming more popular:
- Video streaming has seen significant growth over the past few years, indicating a strong and sustained demand for video content.
- Streaming usage has surged, with a notable shift toward connected TV viewing, making it a preferred choice for many households.
- Consumer adoption has accelerated, with many U.S. consumers subscribing to multiple VOD services to meet their diverse entertainment needs.
These points highlight the rapid growth and popularity of Video on Demand (VOD), making it one of the most scalable and profitable digital business models today. In this guide, you’ll learn how VOD platforms work, their revenue models, and how businesses can successfully launch and monetize their own streaming services.
Understanding the Concept of Streaming Platforms
Streaming platforms offer the flexibility to watch content at any time, without adhering to a television schedule. This convenient and user-friendly approach is gaining widespread popularity. People can enjoy their favorite shows and movies at any time, making it an ideal way to consume media.
Unlike traditional broadcast or cable TV, viewers have the freedom to choose what they want to watch at their convenience, without being constrained by specific airtime or channels. This flexibility enhances the overall viewing experience.
With VOD, viewers can browse different media libraries and stream the content of their choice with just a few clicks, making it much more convenient than traditional broadcast TV and providing a far more personalized experience.
Definition And Key Features Of On-Demand Video Platforms
On-demand video platforms are systems that let people watch videos on the internet at any time. Some important features of these platforms include:
- Instant Access: Users can watch videos from the library at any time, as the content is available 24/7.
- Recommendations: Computers analyze viewing habits to suggest similar shows or movies tailored to each viewer
- High Quality Streaming: Videos play smoothly across all devices including phones, computers, and tablets
- Multi Device Compatibility: People can watch videos on their phones, tablets, smart TVs, or computers
- Flexible Monetization: Streaming platforms can charge a monthly fee, offer pay-per-view options, or provide free access with ads
On-demand video platforms like Netflix excel at suggesting content viewers might enjoy. A large portion of viewing activity comes from these personalized recommendations, showing how much audiences value platforms that understand their preferences.
Looking to develop a video on demand platforms? Talk to our VOD experts
How Streaming Platforms Work Step by Step
Launching a streaming service requires understanding the technical workflow that delivers content to viewers.
- User Authentication: Viewers create accounts and sign in to access personalized content libraries and viewing history
- Content Delivery: A global network of servers (CDN) caches video files close to viewers, reducing buffering and enabling smooth playback
- AI Recommendations: Algorithms analyze watch history, ratings, and viewing patterns to surface relevant content each viewer is likely to enjoy
- Monetization: Platforms generate revenue through subscriptions, transactional fees per video, advertising, or hybrid models
This architecture allows streaming platforms to scale for high traffic volumes, maintain reliable uptime, and deliver personalized experiences. These capabilities make streaming suitable for entertainment, education, corporate training, and live events. The combination of robust infrastructure and intelligent discovery keeps viewers engaged and reduces churn.
Types of On-Demand Video Platforms
These platforms generally fall into three categories: Transactional VOD, Subscription VOD, and Ad-Supported VOD. Each model serves different audience needs and follows a distinct revenue approach.
Transactional Video On Demand (TVOD)
Transactional Video On Demand platforms let people pay for each video or episode they want to watch. This model works well for new releases, premium events, and niche content with dedicated audiences. For example, iTunes and Google Play Movies operate as TVOD platforms. Content creators earn revenue each time a viewer purchases or rents a title.
Benefits of Transactional Video On Demand include:
- Content creators can earn higher per-unit revenue from premium or exclusive releases
- Viewers avoid recurring subscriptions and only pay for what they actually watch
- Ideal for selling special events, early-access content, or limited-run exclusives
Subscription Video On Demand (SVOD)
Subscription Video On Demand services like Netflix or Disney+ give viewers unlimited access to a content library for a recurring monthly fee. This model provides predictable revenue for platforms and encourages habitual viewing, which increases subscriber retention over time.
Ad-Supported Video On Demand (AVOD)
Ad-Supported Video On Demand platforms offer free content funded by advertising. Viewers watch at no cost while brands reach audiences through pre-roll, mid-roll, or display ads. This model lowers the barrier to entry and can scale to massive audiences, making it attractive for platforms building market share or serving price-sensitive viewers.
Hybrid Models
Many successful platforms combine approaches. For instance, a service might offer a subscription tier with ad-free viewing alongside a free ad-supported tier, or let subscribers rent new releases (TVOD) before they enter the subscription library. Hybrid strategies maximize revenue per user while accommodating different willingness-to-pay levels.
Choosing the Right VOD Model for Your Goals
Selecting a monetization model depends on your content type, target audience, and business objectives. Consider these factors:
- Content exclusivity and release windows: Premium new releases often perform better as TVOD initially, then transition to SVOD or AVOD
- Audience demographics: Younger or budget-conscious viewers may prefer AVOD; dedicated fans of niche content may accept TVOD pricing
- Revenue predictability: SVOD provides recurring revenue; TVOD and AVOD fluctuate with viewership and ad markets
- Content library depth: SVOD requires a deep, regularly refreshed catalog to justify ongoing subscriptions
FAQ
What is the difference between VOD and live streaming?
VOD (Video on Demand) lets viewers watch pre-recorded content anytime. Live streaming broadcasts events in real-time as they happen. Many platforms offer both.
Can I switch monetization models later?
Yes. Platforms often evolve their model as their library grows and audience preferences become clearer. Starting with one model and adding others is a common strategy.
Do I need a CDN for a small streaming platform?
A CDN becomes important once you serve viewers across multiple geographic regions or expect concurrent viewers beyond what a single server can handle. For very small or local audiences, a single origin server may suffice initially.
Benefits Of Subscription Video On Demand (SVOD) include:
- Content creators receive regular, consistent payments.
- Viewers are more likely to engage consistently and return for more content.
- The platform can offer tailored video recommendations based on user preferences.
Read more: How do “SVOD” platforms create more income in streaming video content?
Ad-Supported Video on Demand
Ad-Supported Video on Demand (AVOD) platforms provide free video content supported by advertisements. YouTube and Tubi are popular examples of AVOD platforms. These platforms are ideal for reaching a broad audience and increasing visibility for your content.
Benefits of Ad-Supported Video on Demand include:
It allows for simultaneous revenue generation and viewer engagement.
A wide audience can access the content without any upfront costs.
Content creators earn revenue from the advertisements shown during their videos.
On-Demand Streaming Comparison Table
| Platform Type | Definition | Monetization Model | Best For | Pros | Cons |
| TVOD | Pay-per-video or episode | Rental or purchase | Premium content or exclusive releases | High revenue per release, flexible for viewers, easy to launch | Revenue depends on individual purchases, less predictable |
| SVOD | Recurring access to media library | Monthly/annual subscription | Entertainment libraries, educational courses | Predictable revenue, high retention, personalized experience | Requires extensive content, higher setup cost |
| AVOD | Free access monetized with ads | Ads, sponsorships | Broad audience, discovery content | Free access, scalable, monetizable | Ads may annoy viewers, lower revenue per user |
Benefits of On Demand Streaming Platforms
Convenience And Accessibility
On-demand streaming platforms offer unparalleled convenience and accessibility. Users can watch their favorite shows and movies anytime and anywhere, whether they’re commuting, working out, or relaxing at home. This flexibility aligns with the modern lifestyle, where people prefer to consume content on their own terms.
Personalized Viewing Experience
On-demand streaming platforms use advanced algorithms to suggest content based on users’ viewing history and preferences. This personalization enhances the viewing experience, making it more engaging and enjoyable. It also helps businesses retain viewers and build a loyal audience.
Cost Efficiency for Creators and Consumers
On-demand streaming platforms are cost-effective for both creators and consumers. Viewers only pay for the content they want, avoiding unnecessary expenses. For creators, these platforms reduce distribution costs, allowing them to reach a global audience without significant financial investment. For example, Vimeo OTT enables independent filmmakers to distribute their work globally at a lower cost.
- To make a video available on demand, it must be digitized and stored securely on a server.
- The video is then compressed and delivered quickly via the internet or cable to the viewer’s device.
- They get it and put it on their own device.
- After that, they can control how they watch it, like starting or stopping it whenever they want. This makes it more personal for them.
This way of watching videos gives you really good streaming quality. Adaptive bitrate technology adjusts resolution in real time based on each viewer’s connection, so playback stays smooth without manual quality selection. That’s why people like it so much – it makes them feel like they’re really a part of what they’re watching.
Key Features of a Streaming Platform
Multi-Device Support
On-demand streaming platforms should work on all kinds of devices, including smartphones, tablets, computers, and smart TVs. This broad compatibility ensures more people can watch. Build responsive layouts that adapt to screen size, test on major operating systems (iOS, Android, tvOS, Roku, Fire TV, web browsers), and support platform-specific features like AirPlay, Chromecast, and picture-in-picture. Consider native apps for better performance and offline download capability on mobile.
AI Powered Recommendations
On-demand streaming platforms use computer programs to suggest content, keeping viewers engaged and watching longer. Recommendation engines typically combine collaborative filtering (users with similar tastes), content-based filtering (metadata like genre, actors, themes), and trending signals. Surface personalized rows on the homepage — “Continue Watching,” “Because You Watched X,” “Trending Now” — and refresh them each session. Track implicit signals (completion rate, rewatches, search queries) alongside explicit ratings to improve relevance over time.
Secure Streaming and DRM Protection
On-demand streaming platforms need to keep videos safe. They use protection to ensure only the right people can watch the videos, helping content creators get paid for their work. Implement multi-DRM (Widevine for Android/Chrome, FairPlay for Apple, PlayReady for Edge/Windows) with license servers that enforce playback policies — rental windows, device limits, HD/4K tier restrictions. Add token-based authentication, AES-128 encryption for HLS/DASH segments, and watermarking (forensic or visible) to trace leaks. Rotate keys regularly and monitor for credential sharing.
Step by Step Guide to Launching Your On-Demand Platform
Market Research and Platform Planning
You need to figure out what kind of platform you want to launch. Is it going to be about fitness, education, or entertainment? Look at what your competitors are doing and see what people want. This will help you understand what makes your platform special. Start by defining your niche audience and their specific viewing habits — binge vs. episodic, short-form vs. long-form, live vs. on-demand. Audit competitor feature sets, pricing tiers, and content libraries. Run surveys or interviews to validate demand and uncover underserved needs. Document your unique value proposition and minimum viable content catalog before building.
Designing the User Interface
User Experience Best Practices
Your platform needs to be easy to use. Help viewers find what they want without hassle by organizing content into categories and offering recommendations tailored to their interests. Use a clear hierarchy: hero banner for new/featured releases, horizontal rails for genre or mood-based collections, and a persistent search with autocomplete and filters (genre, release year, language, duration). Prioritize “Continue Watching” at the top of the homepage. Ensure accessibility — WCAG AA contrast, screen-reader labels, keyboard navigation, audio descriptions, and closed captions on every asset.
Mobile vs Desktop Considerations
If people are using your platform on their phones, it needs to load and work smoothly. The navigation should be easy to use with your fingers. If people are using their computers, you can have layouts that show more content. On mobile, design for thumb reach — bottom navigation bars, large tap targets (minimum 48×48dp), swipe gestures for carousels, and offline download with storage management. On desktop, leverage hover states, multi-column grids, keyboard shortcuts (space to play/pause, arrows to seek), and picture-in-picture for multitasking. Test both orientations on tablets.
Choosing the Right Technology Stack
Backend & Cloud Streaming Options
You need to use technology that can handle a lot of users at once. Services like AWS Media Services or Azure Media Services are reliable options. Evaluate managed video platforms (Mux, Vimeo OTT, Wowza, Brightcove) against self-hosted stacks (FFmpeg + NGINX + CDN) based on engineering bandwidth, time-to-market, and scaling needs. Key components: live-to-VOD transcoding ladder (multiple bitrates/resolutions), per-title encoding for storage efficiency, global CDN with edge caching, and real-time analytics (QoE metrics: startup time, rebuffer ratio, bitrate distribution). Plan for origin shielding and multi-CDN failover.
Payment Gateway Integration
You need to make sure that payments are secure. You can use services like Stripe or PayPal. Let people buy things inside your app. This works for subscription services, one-time purchases, or ads. Integrate a subscription billing engine (Stripe Billing, Recurly, Chargebee) to handle recurring payments, trial periods, proration on plan changes, dunning management for failed charges, and automated receipts. Support localized payment methods (Apple Pay, Google Pay, regional wallets) and tax compliance (VAT, sales tax) via services like TaxJar or Avalara. For in-app purchases on iOS/Android, follow platform store guidelines and revenue-share requirements.
Implementing the Monetization Strategies
Subscription Models
You can offer subscription plans to predict how much money you will make each month. Design tiered plans with clear value differentiation — ad-free viewing, 4K/HDR access, simultaneous streams, offline downloads, early access to new releases. Offer monthly and annual billing (annual at a discount to reduce churn). Implement pause/resume subscription, gift subscriptions, and family sharing with profile management. Track cohort retention, LTV, and churn by acquisition channel to optimize pricing.
Transactional and Ad-Supported Models
You can also let people buy things one time or watch content with ads. This helps you reach people and make money in different ways. Transactional VOD (TVOD) works for premium premieres, live events, or niche content — offer rental (48-hour window) and purchase (perpetual library access). For ad-supported (AVOD/FAST), integrate a server-side ad insertion (SSAI) solution (Google DAI, AWS MediaTailor) to stitch ads seamlessly into the manifest, avoiding client-side blockers. Define ad pods (pre-roll, mid-roll, post-roll), frequency caps, and targeting parameters (geo, device, content genre). Consider a hybrid freemium model: free tier with ads, paid tier ad-free.
Frequently Asked Questions
How long does it take to launch a streaming platform? A minimum viable product with core playback, payments, and a basic catalog can launch in a few months using a managed video platform. Custom builds with native apps, advanced recommendations, and complex DRM typically take longer.
Do I need native apps for every device? Not initially. A responsive web app with progressive web app (PWA) capabilities covers most platforms. Prioritize native apps for TV platforms (Roku, Fire TV, Apple TV, Android TV) where web performance is limited and discoverability depends on app store presence.
What content rights do I need? Secure licensing agreements that specify territory, window, exclusivity, and permitted monetization models (SVOD, TVOD, AVOD). Clear music, talent, and underlying IP rights separately. Work with an entertainment attorney to draft or review contracts.
How do I reduce buffering for viewers? Use per-title encoding to optimize bitrate ladders, deploy a multi-CDN strategy with real-time switching, enable client-side ABR logic with conservative buffer policies, and monitor QoE dashboards to catch regional degradation early.
How to Start a VOD Platform
Starting your VOD platform can seem like a big task, but it is entirely achievable with a clear roadmap and the right tools. Whether you are a fitness instructor, an educator, or an entrepreneur building an entertainment business, this guide walks you through creating a streaming service that viewers worldwide can access.
1. Pick a Topic and Define Your Audience
Start by identifying exactly who you serve and what problem your content solves. Are you targeting busy professionals who need 20-minute home workouts? Parents looking for curriculum-aligned educational videos? Hobbyists wanting step-by-step craft tutorials? A well-defined niche lets you create focused content, speak directly to viewer pain points, and stand out in a crowded market.
Research your audience before filming: join relevant forums, read comments on competitor channels, and note recurring questions. This insight shapes your content calendar and ensures you produce videos people actually search for.
2. Select a VOD Platform Provider
You do not need to build streaming infrastructure from scratch. Several established providers handle hosting, delivery, monetization, and apps so you can focus on content. Leading options include:
- Webnexs — Offers a complete solution for building scalable OTT platforms with features like content management, monetization, and multi-device support.
- Flicknexs — Focuses on video hosting, live streaming, and flexible monetization options, making it suitable for businesses launching their own streaming services.
- Vimeo OTT — Provides an intuitive interface and reliable delivery at scale, a popular choice for creators who want simplicity without sacrificing reach.
- Muvi — An all-in-one platform that helps you host, stream, and monetize content across web, mobile, and TV apps.
- Uscreen — Designed for creators and businesses building subscription-based video platforms with built-in marketing tools.
When evaluating providers, prioritize: multi-device playback (web, iOS, Android, Roku, Fire TV, Apple TV), content security (DRM, geo-blocking, signed URLs), analytics dashboards that show watch time and drop-off points, and the ability to migrate your library later if needed.
3. Organize Your Video Library for Discovery
Your content library is the product. Structure it so viewers find what they need in seconds. Use consistent naming conventions, group videos into logical categories and series, and add searchable metadata to every asset: clear titles, keyword-rich descriptions, relevant tags, and closed captions or subtitles.
Encode each video in multiple bitrates (adaptive bitrate streaming) so playback adjusts automatically to the viewer’s connection. Test across devices before launch — buffering or failed plays kill retention faster than any other issue.
4. Choose a Monetization Model (or Combine Several)
Decide how you will generate revenue. The three core models are:
- Subscription (SVOD) — Recurring monthly or annual fee for unlimited access. Best for deep libraries with ongoing value.
- Transactional (TVOD) — Pay-per-view or rental for individual titles. Works for premium one-off content like workshops or live event replays.
- Ad-supported (AVOD) — Free viewing with pre-roll, mid-roll, or display ads. Requires high volume to be profitable but lowers the barrier to entry.
Many successful platforms blend models — for example, a subscription tier that unlocks the full library plus a TVOD option for new releases. Start with the model that matches your content depth and audience willingness to pay, then layer in others as you grow.
5. Launch Apps on Every Screen Your Audience Uses
Viewers expect to watch on their terms: phone during a commute, laptop at a desk, smart TV in the living room. Ensure your provider delivers native apps (not just a mobile-responsive website) for iOS, Android, Apple TV, Roku, Fire TV, and Android TV. Native apps enable offline downloads, push notifications, and smoother playback — all of which increase engagement and reduce churn.
6. Plan Your Launch and Ongoing Growth
A soft launch to a small group (email list, community members) lets you fix bugs, gather testimonials, and refine onboarding before a public push. After launch, treat your platform like a product: review analytics weekly, solicit viewer feedback, and publish on a consistent schedule. The platforms that grow are the ones that iterate.
FAQ
- Do I need technical skills to run a VOD platform? No. The providers listed above handle encoding, delivery, DRM, and app publishing. You manage content and settings through a dashboard.
- How much content do I need to launch? Enough to give a new subscriber immediate value — typically 10–20 hours of organized material. You can expand the library over time.
- Can I move my videos to another provider later? Yes, if you keep your source files and metadata. Choose a provider that allows content export without lock-in.
- What about live streaming? Most VOD providers also support live events. If live is central to your strategy, confirm low-latency delivery and DVR features during evaluation.
Viewers can stream your content from desktops, laptops, smartphones, and tablets while on the move, or settle in at home with smart TVs and devices like Roku and Apple TV.
Challenges in Running a Streaming Platform
Licensing and Copyright Compliance
Securing the right distribution licenses for every title in every territory is a legal necessity. Implementing Digital Rights Management (DRM) protects your content from unauthorized copying and redistribution, while clear licensing agreements shield your platform from takedown notices and litigation.
Delivering High-Quality Streaming Reliably
Viewers expect smooth playback in HD and 4K across varying network conditions. A robust content delivery network (CDN) with edge servers close to your audience reduces latency and prevents buffering. Adaptive bitrate streaming automatically adjusts video quality to each viewer’s connection speed, ensuring the best possible experience without manual intervention.
Customer Retention and Engagement
With abundant content choices, keeping subscribers active requires deliberate strategy. Personalized recommendations based on viewing history help users discover relevant titles. Timely push notifications and email alerts about new releases or expiring favorites drive return visits. Exclusive originals, early-access windows, or member-only perks create a compelling reason to stay subscribed rather than churn.
Netflix is a global subscription service that uses artificial intelligence to recommend content to users.
Read More : Netflix clone script to start your own VOD Platform!
YouTube operates an ad-supported free tier that lets creators monetize videos through revenue sharing, while also offering a premium ad-free subscription.
Disney+ relies on a subscription model built around exclusive franchises and original series unavailable on competing services.
Udemy and Skillshare focus on educational content, letting instructors sell individual courses or earn through a subscription revenue pool.
Conclusion
Video on Demand has transformed how content is delivered and consumed by giving users complete control over what they watch and when they watch it. With the support of modern streaming technologies like CDN and cloud storage, VOD platforms enable businesses and creators to deliver scalable, high-quality video experiences globally.
Frequently Asked Questions (FAQ)
A VOD (Video on Demand) platform hosts pre-recorded video content—movies, series, courses, or live-event replays—and lets viewers stream it instantly on any internet-connected device. Unlike linear TV, there’s no broadcast schedule; users choose what to watch and when, with playback controls like pause, rewind, and resume across sessions.
Creators upload source videos to cloud storage, where they’re transcoded into multiple resolutions and bitrates. A CDN caches these renditions at edge locations worldwide. When a viewer presses play, the player requests the manifest file, then streams the optimal quality segment for the viewer’s current bandwidth and device capabilities—switching seamlessly if conditions change.
OTT (over-the-top) services generally fall into three monetization models, often combined: Subscription VOD (SVOD) charges a recurring fee for unlimited access—think Netflix or Disney+. Transactional VOD (TVOD) lets users rent or buy individual titles, common for new movie releases. Ad-supported VOD (AVOD) offers free viewing with commercial breaks, like YouTube or Tubi. Many platforms blend these, such as a subscription tier that removes ads or adds premium content.
Streaming has become a preferred choice for many viewers because it offers the flexibility to watch content at any time, without being tied to a fixed TV schedule. This convenience is a significant factor in its popularity.
Absolutely, you can create your own streaming platform. Tools like Webnexs, Muvi, and Flicknexs provide comprehensive solutions that handle everything from hosting and app development to secure content delivery. This allows you to focus on creating and curating high-quality content for your audience.
Streaming platforms are supported on a wide range of smart devices, including smartphones, tablets, smart TVs, and gaming consoles. This broad compatibility ensures that users can access their favorite content from almost any device they own.
Creatives can generate income from streaming platforms through various methods, such as subscriptions, pay-per-view, and advertising. By combining these approaches, creators can maximize their earnings and offer flexible viewing options to their audience.
Yes, content is secure on streaming platforms. These platforms use advanced technologies like Digital Rights Management (DRM) and encryption to protect videos and user data. This ensures that your content and personal information are safeguarded against unauthorized access and piracy.
Personalization is crucial because it enhances the user experience by tailoring content recommendations to individual preferences. When viewers see content that aligns with their interests, they are more likely to stay engaged and enjoy using the platform, leading to higher satisfaction and loyalty.
Running a streaming platform comes with several challenges, including managing copyright issues, ensuring high-quality streaming, and maintaining robust security measures. Additionally, keeping up with technological advancements and providing a seamless user experience across multiple devices are also key concerns.
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I am interested in receiving more information about the Webnexs video on demand platform and its development. I am particularly looking for pricing plans, so that I can launch this VOD platform.
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I am looking for the best video on demand platform provider for my business which produces videos on fitness business. We would like to watch a demo and pricing packages before making a decision.
We are exploring the possibility of starting a vod similar to Netflix and would like to receive feedback on the estimated budget required. Thank you!
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I’m in search of the best video on demand platform provider. Thank you for clarifying the meaning of VOD. Can you confirm if your service includes unlimited bandwidth? Additionally, I’m interested in learning more about your VOD hosting and storage capabilities. Could you also provide details about the packages you offer?
To develop an Android and iOS app, I require comprehensive information about the real-time scenario of VOD meaning and on demand video platform . Kindly provide me with all the relevant factors to choose the best vod platform solutions
Looking for insights on world-class VOD meaning and video-on-demand examples? Explore options like Hulu, which offer multiple revenue models.
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Thank you
Hello Team,
After going through the article “What is VOD and what does VOD mean” and other written content on the webnexs blog, I felt inspired to reach out to you. I’m interested in learning more about your pricing.