Now, most users subscribe to a streaming service (69%) and just 65% subscribe to cable TV. According to statistics in 2020, more individuals stream through internet TV services. The primary reason is that people can not view advertising while viewing original content they are not able to watch on traditional cable. By 2021, the live streaming market will stand at over $70 billion. In 2022, users are learning how to start video on demand business.
In the Video-On-Demand sector, user penetration is expected to be 25.5% in 2022 and is anticipated to hit 29.2% by the year 2026. The largest segment which is SVOD video streaming will have a market volume of US $82431m in 2022.
VOD Business – the History of VOD
Over the Top Entertainment or OTT is any video streaming that happens over the internet. Today, it’s linked to top streaming services like Disney+, Netflix, HBO Max, Hulu, etc. The first VOD streaming platform happened in 1995. By the end of the 2000’s this kind of technology went mainstream with streaming services presented by Amazon Instant Video, Hulu, Netflix, and more. By the end of this blog, you will know how to start a VOD business.
Such streaming services changed what consumers were used to. They presented a new method to access the movies and shows they adored. They offered viewers an option of limited and costly cable/satellite. As OTT became more popular, different kinds of OTT services did well in the market. In 2020, video and TV services have not been more different. The manner in which these revenue models function is just as different. Want to know how to start a video on demand business? Learn how a OTT vs VOD business functions by referring to online resources.
Types of VOD Business Model
OTT is changing the viewing habits of the consumer, giving viewers additional control over where and when they touch base with content, and also inherently changing the pricing structure for consumption of video content.
Satellite dishes and channel bundles are now a thing of the past – OTT streaming services and VOD business models are next-level presentations that depend on the digital feature of the video content industry to offer viewers varied experiences on the basis of their sources of revenue. You can now know how to start a video on demand service.
With the entry of these types of streaming services, it is a whole new game for content creators. You have additional control over how to build revenue from OTT than earlier. Learn below about the types of VOD business models:
SVOD or Subscription VOD Model
This is one of the most common VOD platforms revenue model used today. Netflix is a prime example of the same. Another prime example is Amazon Prime. In such a subscription-based business plan, users are not able to access the content without subscribing to the service. Users receive unlimited access to ad-free videos by becoming subscribers to these services on a monthly or yearly basis. VOD platform monetization is very popular today.
AVOD or Advertisement-Supported Model
This is the least used but most popular type of VOD monetization service. Understanding this model, you can know how business can flourish even after presenting free VOD services to consumers. In this category, YouTube is the most important success story. YouTube makes use of advertising as a tool for platform monetization for contributors and itself. Ads are embedded in the videos and analytics are tracked with the help of Google Adsense. Like conventional TV broadcasting, programs are sponsored by various brands which display advertisements in the assigned slots.
TVOD or Transactional VOD Model
Do you remember the days of going to a Netflix outlet and buying DVDs to view on rentals? TVOD model works on that basis. Users do not generally subscribe to the full service. Instead, they pay to access the content they prefer to watch. In this model, best white label OTT platforms let users pay for the specific video or content they want to view. A well-known term for this model is the pay-per-view model. It works ideally for streaming live programs and special events in which users do not mind paying for watching it.
Starting a Video On Demand Website for Business
Select Your Platform
The VOD platform provider will offer the wings for your business and it is important that you choose a service that supports you 24/7. Some video on demand platforms provides excellent customer service controls in comparison to others. Write down a list of criteria that matter to you also and make a checklist against every one of the selected video on demand platform providers.
Produce the Content
Once everything is mapped out, you must produce the content for the website. Based on the goals, you may be thinking of releasing a huge number of videos at a time, so this step could take many weeks or months. A good way to generate content also is to record live streams and virtual events. A good way to reformat the content is to upload live content as a VOD file.
Embed the Video Player
The majority of online video platforms offer broadcasters the option to manually embed the video player in a portal or website with the help of embed codes. By using signed embed codes or domain restriction, you can privately share videos also to make sure that videos can be accessed on owned websites. Test the video players on the best online video hosting platforms to ensure all is ready when the viewers watch the content.
Setting Up a Monetization Model
In setting up a marketing model, there are several tools to include such as cross-platform production, advertising, subscription model, pay per view also which will help you in assigning metrics for every concept you favor. This is the best method to measure the campaign’s success.
Promoting the VOD Website
While promoting your website, the promotion methods also will rely on the content purpose. For in-house content, the promotion will comprise of sharing the website link with team members who are required to watch it. If you are monetizing your website, also you would want to invest energy and time in advertising and promoting your website. Now, create your own video on demand site easily.
Video streaming is an effective tool for modern-day businesses. Now, learn how to create a video on demand website. Knowing how and where to start can be unnerving. In this blog, we have covered also some mandatory features in a VOD platform and how to use such tools to create your own VOD website or build video on demand website.