What is VOD (Video On Demand)?

Video on Demand (VOD) is a method of video consumption that allows users to access video content such as movies, TV shows, and other digital media at their convenience.

While traditional broadcast television adheres to a fixed schedule and the viewers have to adjust to that schedule, VOD or video on demand provides the flexibility to watch the content anytime and anywhere, using various devices like TVs, smartphones, tablets, and computers.

In today's day and age, video-on-demand typically refers to streaming services such as Netflix, Apple TV, HBO Max, etc. However, there are several other applications of VOD, which we will see later.

What is the difference between VOD and OTT?

While VOD and Over-The-Top (OTT) streaming are often used interchangeably, they refer to entirely different things.

OTT or Over-the-top refers to the delivery of video content over the internet instead of traditional cable or satellite broadcast. So, any video that is streamed over the internet, whether it is a live stream or it is a video-on-demand, will fall under the category of OTT content.

Video-on-demand refers specifically to on-demand access to video content. Users can watch pre-recorded content at any time.

By these definitions:

YouTube and Netflix are both VOD and OTT.
A live broadcast of the Olympics you watch on your laptop is OTT, but not VOD.
A cable channel that shows your favorite program at 8 pm every day on your television is neither OTT nor VOD.

What is the difference between VOD and pay-per-view?

VOD and Pay-per-view (PPV) are both used to access video content online but differ in their access and payment models:

Difference in Access: While VOD allows users to access a content library at any time, in pay-per-view, users pay a one-time fee to watch a specific event or content. Pay-per-view is commonly used for live events like boxing matches, concerts, and special premieres.
Difference in payment model: VOD streaming can be subscription-based (SVOD), transactional (TVOD), or ad-supported (AVOD), where the users pay either a recurring fee, a one-time rental fee, or watch ads. Pay-per-view requires users to pay a fee each time they want to watch a specific content. There are no subscription options, and the payment is made per event or video.

How does VOD work?

This on-demand nature of VOD is supported by several key technologies and processes:

Video Storage: For the video to be available to stream at any time, it must first be stored on some centralized servers. If the content is stored, it can never be played back on demand.
Video Transcoding: Different devices have different processing capabilities and network bandwidth to stream videos. Therefore, the stored videos are optimized and transcoded into various formats and bitrates to ensure compatibility with different devices and network conditions. Adaptive bitrate streaming allows the video quality to adjust dynamically based on the user's internet speed and other device requirements.
Streaming over Content Delivery Networks (CDNs): Video CDNs play a crucial role in VOD by distributing video content across multiple geographically dispersed servers. CDNs are built to provide high network throughput and fast load times. The presence of CDN servers in a location that is geographically close to the end user reduces latency and improves streaming quality.
- For example, with a CDN in place, a video initially stored in the US will be streamed to a user in Singapore via a CDN edge server in Singapore, whereas a user in the US will get the same from a CDN server in the US. Contrast this to a scenario where there were no distributed CDN servers. The user in Singapore would have had a poor VOD streaming experience.
Video Player and other User Interface: The final step is the video player on the user's device that decodes the video content loaded and then plays back the video, ideally without buffering. The video player has some built-in analytics that help VOD services optimize content delivery and production. VOD services also provide an intuitive interface for users to browse, select, and play videos. These interfaces often include features like search, recommendations, and personalized watchlists to enhance the user experience.

What are the different monetization models of VOD?

VOD services can make money through a few different models, which often form the basis for categorizing VOD services.

SVOD (Subscription Video on Demand): In this model, users pay a recurring fee to access a vast content library. Popular examples include Netflix, Hulu, and Amazon Prime Video. Subscribers can watch unlimited content as long as their subscription is active and the subscription gives them access to that content.
TVOD (Transactional Video on Demand): Instead of paying for an entire library of content in SVOD, TVOD users pay for individual video content through a rental fee or a one-time purchase. This model is common on platforms like iTunes and Google Play, where users can rent or buy movies and TV shows.
AVOD (Advertising-based Video on Demand): In this model, while the content itself is available for free, the users are shown targeted advertisements before, after, or during the video playback. The advertisers trying to reach their target audience through these ads provide revenue. Services like YouTube and some free tiers of streaming platforms use this model.
PVOD (Premium Video on Demand): This is a subset of TVOD where users pay a premium price to access newly released or exclusive content. It is often used for early releases of movies that are still in theaters.

What are the benefits of VOD?

VOD streaming has a lot of benefits for the viewers. It has picked up after COVID with people opting to stay at home to catch the latest releases, and a lot of content is now produced to be published directly and exclusively on VOD platforms like Netflix instead of getting released first in movie theaters.

Flexibility: Users can watch content whenever they want without being tied to a broadcast schedule.
Accessibility: VOD services are accessible on various devices, making watching content on the go easy.
Personalization: Many VOD platforms offer personalized recommendations based on user preferences and viewing history, making it an even more engaging experience.
Content Variety: VOD libraries typically offer a wide range of content, including movies, TV shows, documentaries, and exclusive content.

How is VOD used in different industries?

Entertainment: Platforms like Netflix, Hulu, and Amazon Prime offer a wide range of movies, TV shows, and original content, allowing viewers to watch their favorite programs at their convenience.
Education: Educational institutions and e-learning platforms use VOD to give students access to lectures, tutorials, and instructional videos. This supports self-paced learning and remote education.
Healthcare: VOD is used for training healthcare professionals, patient education, and telemedicine, enabling medical institutions to distribute training videos and informational content efficiently.
Corporate Training: Businesses use VOD for employee training and development, allowing companies to deliver consistent training materials across multiple locations. Employees can access resources whenever needed, usually just on the company network.
Fitness and Wellness: Fitness instructors and wellness coaches offer VOD services for workout routines, meditation sessions, and health advice, enabling users to follow along with videos at their own pace. This was also one of the categories that picked up massively during COVID as people started working out at their homes.

How to use ImageKit for VOD Streaming?

ImageKit is a complete media delivery and management platform that provides video uploads, real-time video optimization, transformation, streaming, and delivery solutions using a simple video API, that can be used to build a complete VOD service.

Here's how different features in ImageKit can be used to build a great VOD experience:

Video Storage: ImageKit provides an integrated Digital Asset Management system that allows the upload of large video content via a user interface or APIs.
Video Transcoding and Adaptive Bitrate Streaming: ImageKit can transcode and compress videos into multiple formats and bitrates, making videos smaller and reducing buffering times. The adaptive bitrate streaming feature ensures that videos are delivered at the best possible quality based on the user's internet speed and device capabilities.
Real-time video transformations: ImageKit offers several video transformations, from simple resizing and cropping to adding watermarks in real-time. This allows for dynamic adjustments based on user preferences or device specifications.
Content Delivery Network (CDN): ImageKit comes integrated with a CDN that helps deliver video content quickly and reliably to users worldwide, minimizing latency and improving streaming performance.
Works with any video player: You can use ImageKit's video streaming URLs with any standard video player, which helps you customize the viewer experience and build your analytics.

Conclusion

Video on Demand has revolutionized media consumption, offering unparalleled convenience and flexibility. With its various monetization models and technological advancements, VOD continues to grow in popularity, providing users with a rich and diverse viewing experience. Leveraging platforms like ImageKit can enhance VOD services or help build one with minimal effort.

If you want to deliver videos on your websites and apps, you can try ImageKit video API, which supports modern video formats and real-time optimizations, transformations, and streaming using a simple URL-based API.