Our world changed drastically over the last few years, so does the world of entertainment. Video on Demand or VOD has completely changed the way we watch our favorite shows and movies. It’s giving an opportunity to the viewers to pick whatever they want to watch.
But did you know there are different types of VOD models? That’s right! There’s SVOD, where you pay a monthly fee for unlimited access, AVOD, which is free but comes with ads, and TVOD, where you pay per view. Each model has its own perks and quirks. This type of development and changes can make you wonder, how would the world look like in the future!
In this article we’re going to have a look into SVOD, AVOD, and TVOD models to see how they’re shaping the future of entertainment. So, grab your popcorn and let’s explore!
What is VOD?
VOD stands for Video on Demand. It’s a service that allows users to select and watch video content whenever they choose, rather than at a scheduled broadcast time. With VOD, viewers have the flexibility to watch movies, TV shows, or other video content on their own terms, typically through streaming platforms or digital rental services.
This is the present and future of the broadcasting industry. A report by Conviva suggests that video on demand is viewing up 155% year-by-year with an average of 17.1 minutes spent per session.
Types of VOD
- SVOD = Subscription Video on Demand
- AVOD = Advertising Video on Demand
- TVOD = Transactional Video on Demand
- PVOD = Premium Video on Demand
- NVOD = Near Video on Demand
What is SVOD?
Subscription Video on Demand is a model where users pay a fixed monthly or annual subscription fee to access unlimited streaming of a wide range of video content, including movies, TV shows, documentaries, and original programming on a streaming platform from any device, anytime.
Platform
- Netflix
- Amazon
- Prime Video
- Disney+
- Hulu (also offers AVOD and TVOD options)
- HBO Max
- Apple TV+
- Paramount+
- Peacock Premium
- YouTube Premium
- Discovery+ ,etc.
Advantages
- Unlimited access: Subscribers have unlimited access to a wide range of content, including exclusive originals, without any additional costs per title.
- Convenience: Viewers can watch content anytime, anywhere, and on any device with an internet connection, providing unparalleled convenience.
- Cost-effectiveness: Compared to traditional cable or satellite TV subscriptions, SVOD services often offer more content at a lower monthly cost.
- No Ads: SVOD eliminates interruptions from advertisements, providing a seamless viewing experience.
Disadvantages
- Subscription fatigue: This is another issue that many people face nowadays. With so many SVOD services available, it’s easy to feel overwhelmed by the number of subscriptions needed to access all the content you want.
- Content rotation: And let’s not forget about content rotation. Some platforms regularly rotate their content library, which means that beloved titles may disappear from the lineup from time to time. It’s disappointing for subscribers who have grown attached to certain shows or movies.
What is Avod?
AVOD, or Ad-Supported Video on Demand, is a model of streaming service where users can access content for free, but they have to endure advertisements during playback. These platforms offer a wide range of content, including movies, TV shows, user-generated videos, and original programming, all supported by advertisements, allowing users to access content for free.
Platforms
- YouTube
- Hulu (with ads)
- Peacock
- Tubi TV
- Pluto TV
- Crackle
- IMDb T
- Popcornflix
- Crunchyroll (with ads)
- Vudu, etc.
Advantages
- Free Access: One of the biggest perks of AVOD platforms is that they’re absolutely free to use. Whether you’re a student on a tight budget or just love a good deal, AVOD platforms open the doors to entertainment without breaking the bank.
- Large Content Libraries: AVOD platforms don’t skimp on content. From classic movies to trending TV shows, you’ll find a treasure trove of entertainment options to choose from.
- Broad Audience Reach: AVOD platforms attract a massive audience, thanks to their free nature. This makes them a prime target for advertisers looking to reach a diverse demographic.
- Variety of Content: AVOD platforms offer a smorgasbord of content, ranging from user-generated videos to professionally produced shows and movies. There’s something for everyone, no matter your taste or interests.
Disadvantages
- Ad Interruptions: While the content may be free, you’ll have to endure occasional interruptions from advertisements during your viewing experience. For some users, this can be a minor inconvenience.
- Limited Content: While AVOD platforms offer a wide range of content, they may not have the same selection of premium or exclusive content as subscription-based services. If you’re looking for the latest blockbusters or exclusive originals, you might have to look elsewhere.
- Lower Revenue per View: Ad-supported models typically generate lower revenue per view compared to subscription-based models. This can sometimes impact the quality and quantity of content available on AVOD platforms.
What is TVOD?
TVOD, or Transactional Video on Demand, is a model of streaming service where users pay for individual titles on a pay-per-view basis. Users have the flexibility to choose which titles they want to watch and pay only for those specific titles. They can typically choose between renting a title for a limited period (usually 24-48 hours) or purchasing it outright for permanent access.
Platforms
- iTunes
- Google Play Movies & TV
- Amazon Instant Video
- Vudu
- YouTube Movies
- Microsoft Store
- PlayStation Store
- Redbox On Demand, etc.
Advantages
- Instant Access: TVOD offers immediate access to new releases and specific titles without the need for a subscription. Users can rent or purchase titles on-demand, eliminating the need to wait for them to become available on other platforms.
- Flexible Pricing: Users have the flexibility to choose between renting or purchasing content based on their preferences and budget. Renting is often cheaper and suitable for one-time viewing, while purchasing offers permanent access to the title.
- No Subscription Commitment: TVOD services do not require a recurring subscription, making them suitable for occasional viewers who may not want to commit to a monthly subscription fee. Users can choose to rent or purchase titles as needed, without any long-term commitment.
Disadvantages:
- Cost per Title: TVOD can be expensive for frequent viewers, as costs can quickly add up, especially for purchasing titles. While renting is cheaper than purchasing, users may find themselves spending more money in the long run, particularly if they watch a lot of content.
- Limited Access: TVOD libraries may not offer the same breadth of content as SVOD services, particularly for older or niche titles. Users may find that certain titles they’re interested in are not available for rent or purchase on TVOD platforms, limiting their options.
What are the similarities between SVOD, AVOD and TVOD?
- Digital Distribution: Whether it’s streaming content online or downloading for offline viewing, SVOD, AVOD, and TVOD platforms all rely on digital technology to deliver content to users.
- Convenience: Each model offers convenience in its own way. SVOD provides unlimited access to a library of content for a fixed fee, AVOD offers free access with ads, and TVOD allows users to rent or purchase specific titles on-demand.
- Device Compatibility: Users can access content from SVOD, AVOD, and TVOD platforms on various devices, including smartphones, tablets, computers, smart TVs, and streaming media players, making it easy to enjoy their favorite content anytime, anywhere.
- On-Demand Access: Whether it’s binge-watching a TV series, catching up on the latest movies, or renting a specific title for one-time viewing, SVOD, AVOD, and TVOD platforms cater to users’ preferences for instant access to content.
- Revenue Generation: While the specific revenue models differ, all three models generate revenue to sustain their operations and acquire content. SVOD relies on subscription fees, AVOD generates revenue through advertising, and TVOD earns money from rental and purchase fees.
- Content Variety: Users can find a diverse range of content on SVOD, AVOD, and TVOD platforms, including movies, TV shows, documentaries, and original programming, catering to a wide range of interests and tastes.
What are the differences between SVOD, AVOD and TVOD?
| Aspect | SVOD | AVOD | TVOD |
| Payment Model | Recurring subscription fee | Free access with ads | Pay-per-view/ Rental/ Purchase fee |
| Advertisements | No ads | Yes, advertisements during playback | No ads |
| Content Access | Unlimited access to library | Limited access to library | Access to specific titles |
| Revenue Source | Subscription fees | Advertising revenue | Rental and purchase fees |
| User Commitment | Monthly or annual subscription | No subscription commitment | No subscription commitment |
What is the future of SVOD, AVOD and TVOD?
Looking ahead, it seems like SVOD is set to maintain its stronghold in the market. With a focus on producing original content and expanding globally, SVOD services are poised to continue captivating audiences worldwide. Meanwhile, AVOD is expected to see significant growth, fueled by the rising demand for free content supported by ads and targeted advertising. On the other hand, TVOD is likely to remain popular for accessing new releases and specific titles, although it may encounter challenges from the dominance of SVOD services.
Last Thought
In wrapping up, it’s clear that each video on-demand model SVOD, AVOD, and TVOD comes with its own making them suitable for different preferences and business strategies. As the streaming platforms continues to evolve, it’s increasingly important for both consumers and industry professionals to grasp the nuances of these models. This understanding ensures that everyone can make informed decisions and find the perfect option to satisfy their entertainment needs in the ever-changing landscape of digital media.