US and Canada Report

Technology advancement and demand for focused content drive the growth of the Video on Demand (VOD) Market

Technology advancement and demand for focused content drive the growth of the Video on Demand (VOD) Market

February 08
18:30 2023
Technology advancement and demand for focused content drive the growth of the Video on Demand (VOD) Market
Netflix (US), Amazon (US), Google (US), YouTube (US), Apple (US), HBO (US), Cisco (US), Roku (US), IndieFlix (US), Vudu (US), Hulu (US), Comcast (US), Akamai (US), Huawei (China), Fujitsu (Japan), CenturyLink (US), Muvi (US), and Vubiquity (US).
Video on Demand (VoD) Market by Solution (Pay TV, OTT Services, and IPTV), Monetization Model (Subscription-based, and Advertising-based), Industry Vertical (Media, Entertainment, and Gaming and Education), and Region – Global Forecast to 2024

Cloud computing and content delivery network (CDN), coupled with advanced endpoint devices such as smartphones, IPTVs, laptops, tablets, and nextgen connectivity technologies like 5G, Wi-Fi 6, and Bluetooth 5.0, have led to the exponential penetration of VOD in the Entertainment and Education industries. These technologies have empowered fictitious use cases and applications to become real ones. VODs have opened up several options and opportunities for business houses and end-users.

VOD benefits businesses as education tools for learning and development (L&D) programs for upskilling, periodic training and assessment of employees, awareness of corporate ethics and etiquettes, and social awareness. It enables the management to deliver well-rehearsed training modules with the right intonations to emphasize important sections of the modules. Moreover, VOD-based  L&D modules allow employees to access the training modules comfortably from their work area, conference rooms, cafeteria, or in transit without affecting production and delivery.

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Content is King: Content dictates the success and future of the creative house

In addition, VOD platforms such as YouTube, Netflix, and Amazon Prime Video engage young viewers like infants, children, adolescent kids, and young adults with content tailored to their age and demographics. Conventional mediums can never offer the variety and customization delivered by the VOD platforms. The academic videos by specialist educationists help students to prepare for board exams and competitive exams over and above the support from their mainstream teachers.

Media houses leverage VOD to deliver customized content to their viewers through their personal devices to enable viewership irrespective of time, place, and scenario. Production houses extensively leverage the VOD mode of delivery to attract and engage a wide variety of viewers. VODs have nullified the key parameters such as prime time slot and TRP that decide the value and future of any show in conventional mediums like TVs, DTH, and theaters. VODs have extended the time window for any show/content for viewers to watch at their convenience. Hence, the traffic for the VOD content is continuous and distributed across the 24/7 period.

VOD empowers freelance artists with a platform to display their talent on free VOD platforms such as YouTube, Facebook, and Instagram to monetize through ads and PPC channels. Further, small-time production houses and creative professionals have immense opportunities to build their portfolios and engage the audience with ideas that have negligible probability with large production houses.

Further, the end consumers leverage VOD content and platforms for local, regional, and international entertainment across genres, hobbies, self-learning courses relevant to their trade or a new trade, and work-related best practice techniques from industry peers at similar hierarchies.

While ad agencies and marketers are chasing the VOD platform for ad slots and negotiations, the application of VOD content has become a major marketing asset. VOD-based ads are placed as in-game videos to be viewed to earn bonus points/coins, to move to the next level, ads in popular VOD platforms as non-skippable videos to deliver content-heavy messages, delayed-skip videos, and instant skippable videos.

VOD Monetization

VOD monetization happens through the below four modes of revenue model:

  • Subscription-based VOD (SVOD)

SVOD requires the consumer to pay for the subscription monthly, quarterly, biannually, or annually. The consumer can view unlimited content multiple times during the subscription period.

  • Premium VOD (PVOD)

PVOD demands upfront payment to access/view the content from a premium creator or view the most-valued time-tested creations from a particular production house that are not part of the SVOD catalog.

  • Transaction-based VOD (TVOD)

Consumers are charged for the time spent on the platform, irrespective of the content they access, both premium and regular content. At times, it could be for a movie/show that totally grabs the viewers’ attention for the whole period and also for most celebrated events such as videos of prominent music concerts, plays, sports, and ceremonies.

  • Advertisement-based VOD (AVOD)

AVODs do not charge customers for most of their content and their prominent revenue models is through playing ads on their platform, in the middle of the videos like YouTube. 

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