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Request a Free DemoVideo On Demand Meaning: What is VOD? What Does VOD Stand For?
Published On April 7th, 2025
Video on Demand (VOD) has flipped the way we binge content and it’s so easy and flexible. But what is VOD? How does it work and why is everyone so obsessed?
The VOD market is on fire, hitting $146.6 billion in 2023 and expected to touch $270.3 billion by 2028 at a 13% CAGR. This growth is due to so many reasons; Old school cable TV is dying and content creators, smart TV apps and mobile streaming are on the rise.📈
Conviva reports that VOD viewing has shot up by 155% year-over-year, with people spending an average of 17.1 minutes per session glued to their screens.
And let’s be real—video content is king. HubSpot says people prefer videos over infographics, blog posts, or emails.
Cisco even predicts that by 2025, 70% of people will have mobile devices, and the demand for 4K/UHD content will double.
If you play your cards right, the VOD market is a lucrative opportunity waiting to be tapped. This article breaks down the VOD platform model, its benefits and how businesses can cash in.
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Table of Contents
What is VOD?🔦
VOD or Video on Demand, is a media distribution system that allows users to watch pre-recorded video content whenever they want and not tied to a fixed schedule.
Unlike traditional TV, where content is aired at specific times, VOD allows audiences to access a huge library of movies, TV shows, sports events and digital films on demand.
With VOD, you can pause, play, rewind and rewatch content as many times as you want.
This is why VOD is the preferred choice for streaming on OTT apps and platforms, available 24/7 across devices like smartphones, tablets and smart TVs.
For content creators, media businesses, and film producers, VOD presents a lucrative opportunity to distribute and monetize video content.
They can sell their content on OTT platforms and earn through pay-per-view or subscription based models (monthly, half-yearly or yearly), making VOD an essential part of the modern digital entertainment era.
Understanding VOD Streaming💡
VOD stands for “Video on Demand” & VOD streaming is a OTT service which follows a technology where the uploaded video content is transferred to viewers on their smart tv or mobile apps on demand through the internet.
What does On-demand means, On-demand is when a viewer chooses to watch a specific video content from an OTT platform content library for a fee.
VOD services are accessible through cable, telephone providers, and broadband to OTT platform On-demand viewers.
What are the advantages of video on demand?🎇
- Watch Anytime – Viewers can play content whenever they prefer. Unlike traditional TV schedules, VOD is not tied to a fixed timetable.
- Choose Your Favorites – Viewers have the freedom to pick and choose what they want to watch, in comparison to traditional pre-scheduled viewing.
- Control Your Viewing – Viewers can play, stop, rewind, fast forward, and fully control how they watch content. This ensures they don’t miss anything important.
How Does Video On Demand Work?👷
Video on Demand (VOD) lets you stream or download pre-recorded video content at any time, without a fixed schedule.
The Content is stored on a central server and is delivered to viewers through the internet on devices like smartphones, tablets and smart TVs.
Here is a quick rundown of how VOD works:
- Video Storage – Content is converted into digital format and stored on a video server.
- Streaming & Delivery – Video is compressed and sent via broadband or cable.
- Viewer Access – Video is decoded and played on the user’s device through an OTT app or set-top box.
- User Controls – Viewers can pause, play, rewind and fast forward as they like.
With VOD, audiences get on-demand access to entertainment, education, and more, making it a highly flexible and convenient way to consume video content.
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👉Read Also: How To Build A Billion-Dollar Video On Demand (VOD) Website?
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Different Types of VOD Models to Choose💫
Running a successful VOD business isn’t just about uploading videos; it is about picking the right video monetization model.
The common VOD models include subscriptions, pay-per-view, premium video on demand. However, other monetization models are available as well.
The way you earn from your content decides how far your brand goes and how well it performs financially. Agree or disagree?
There are several ways to turn your video content into profitable opportunities.
Here are the top three video monetization models to earn revenue from your offerings:
1. TVOD – Pay-Per-View Model✨
What is TVOD? Simply put, Transactional Video on Demand (TVOD) lets viewers pay only for the content they want to watch.
It works best for premium videos with limited libraries. You can think of blockbuster movies or exclusive sports events.
TVOD is further divided into:
- EST (Electronic Sell Through) – Viewers make a one-time payment and own the content forever.
- DTR (Download to Rent) – Users pay a smaller amount to access the content for a limited time period.
Big names like Google Play and iTunes follow this model and make money per purchase.
2. SVOD or Subscription VOD✨
What is SVOD? Subscription Video on Demand (SVOD) is the go-to and preferred video monetization model for platforms with large video libraries.
Here, users pay a monthly or yearly fee to access the platform’s content.
Once subscribed, they can watch as much as they want; no extra charges whatsoever. Plans usually come with auto-renewal options, though viewers can cancel anytime.
Popular platforms like Netflix and Amazon Prime run on this model, giving users the much needed flexibility to binge-watch without any interruptions.
3. AVOD or Advertising VOD✨
What is AVOD? Advertising Video on Demand (AVOD) allows viewers to watch content for free, but there is a catch. They have to sit and watch ads.
The ads are placed at different points in the video:
- Pre-roll Ads – Play before the video starts.
- Mid-roll Ads – Appear in the middle.
- Post-roll Ads – Show up at the end.
If we take SVOD vs AVOD as a comparison, the AVOD model is great for platforms with a large audience base because ad revenue increases with more views.
Here are the examples for AVOD—YouTube and DailyMotion, where ads run the revenue for the platform.
What are the Opportunities in Video On Demand(VOD) ?🎇
The dynamic change and capabilities VOD presents itself has vast practical implications, the global reach and demand for online on-demand content have enhanced the business sectors.
The major ones are entertainment and online education. Entertainment platforms like Netflix , Amazon Prime, Google Youtube, The Walt Disney Company , Apple , Warner Bros Discovery , Comcast Corporation , Paramount Global , Sony, Fox Corporation , Lionsgate , Indieflix , Reliance Jio are reaping the benefits.
When it comes to E-learning, the flexibility to pause, play and rewind the educational content makes it a primary source for students to access educational content from remote locations, surpassing the geographical limitations.
Who are the Global clients of the VoD market?🐦🔥
The VOD market is expanding across all sectors, with major areas including Government Agencies, Resellers and Distributors, Research Organizations, Educational Institutions, Corporate Media Businesses, and Entertainment Businesses.
Investing in these sectors is a smart move to make your VOD business fruitful.
Why Should Your Business Need VOD?🈺
VOD streaming platforms fill the gap between forced viewing by flexible viewing experience, modern busy lifestyle calls for a system that is equally flexible to suit the viewers’ needs.
Video on demand (VOD) services provide enhanced accessibility to audiences and also enough time for creators to perfect their videos for release.
What is a VOD? Video on demand, refers to any content distribution platform that allows viewers to choose when, where, and how they watch media.
The modern busy lifestyle calls for a system that is equally flexible to suit the viewers’ needs.
Video on demand services provides enhanced accessibility to audiences and also enough time for creators to perfect their videos for release.
Take a look at some of the main reasons why businesses should use VOD for their growth.
● Convenience
VOD allows customers to consume the content as per their wish. There are no restrictions on time and place, and the viewers can watch as many videos as they want.
Unlike a traditional broadcasting service, VOD app services are not limited to geographical locations and viewers can stream content from worldwide.
Furthermore, VOD businesses do not have any contractual obligation and also provide customers the flexibility to discontinue the service at any moment.
● Online Community and Passion
With VOD, creators can build communities around their videos and the industry they are passionate about.
This creates better engagement and a sense of belongingness among the viewers. And if the content is good, it leads to increased business success and also earnings.
● Source of passive income
Create a video subscription platform, provide a regular income to the service provider, so they don’t need to focus on picking up customers each day.
One can easily increase the customer base with the reference of their online community.
This allows the creators to invest more of their time and also resources into creating quality content and positioning themselves as an authority in their industry.
As a result, customers are more willing to buy from them at a premium price.
● Control over your variety of content
By creating the best online video platforms, creators have complete control over their content. They can create whatever they like for whoever they want.
One can create videos on the go and also share them with the world while being their most authentic selves.
● Monetize your current VOD market
If you have a large social media following, you can direct it to your existing online space and turn your followers into viewers.
With an increase in the number of viewers, the popularity and also revenue of the business will also increase.
● Unlimited Customers & Accessibility
Creating a unified platform is much better, as it is accessible through a variety of devices.
Audiences can log in to their account from any laptop/computer or mobile phone with a single click and also start streaming their favorite videos.
VOD inclined services are also capable of providing content to unlimited customers. Thus, maximizing their revenue potential.
● Ad-Free Entertainment
Nothing irritates viewers more than ads during video streaming. In fact, many viewers are ready to buy premium memberships to surf ad-free content online.
VOD services help businesses deliver a smooth ad-free streaming experience that helps to build a loyal audience base.
How to Get Started With VOD Streaming?🚀
Creating your own VOD platform is one of the best decisions that you can take to upscale your business.
It is not only useful for providing VOD services but also facilitates business communication, education, training, and much more.
It is not only useful for providing entertainment services but also facilitates business communication, education, training, and much more.
Indeed, we can definitely say that VOD is an opportunistic niche with a huge market.
And, therefore there are endless possibilities in 2025 for you to start a video on demand service of your own with every tryout..
So, let us start from the first step here:
- Create Unique Video Collection .
- Discover Your Niche
- Obtain Streaming Rights.
- Finalize on revenue models.
- Build a top video streaming website.
- Upscale via Mobile
- Boost Content with Marketing Funnel
Step 1: To get started with your business, the first thing that you need is to create a strong library of videos to make the audience invest in your digital entertaining store worthwhile.
Step 2: If you are looking to grab the attention of a heavily crowded space, it becomes necessary to do something that others are not doing.
And that would be creating uniqueness with your own niche found. In other words, decide on your business plan by creating a video streaming website like Netflix.
Step 3: Once you are definite about the contents that you plan to stream, it’s perfect to get those aligned with your business plan.
You can approach content owners & distributors to acquire individual content rights to publish their copyrighted content into your online video platform.
Step 4: Then, molding your revenue is utmost necessary as per legal terms of content usability.
Get a clear understanding of types of revenue models such as SVOD, TVOD, AVOD, CatchUp TV, Paywall Feature, SSAI, and others.
Step 5: After that, you can start by building a website of your own to host your videos.
You can now have numerous turnkey solutions from top video streaming platform providers which are affordable to launch your video on demand services on the move.
Step 6: Now the time has come, where you can get a major proportion of the video streaming audience which is highly dependent on mobile apps.
Upload content consistently to keep your viewers engaged through platforms like Android, iOS. Since mobiles are chosen over computers, build a video streaming app or website & this would assure lump sum results.
Step 7: And finally, promote your platform well to reap extraordinary benefits while earning money.
After finalizing a business niche, license, website and also platform integration into mobile apps readily, the last step that’s left to do is — bring-in subscribers.
You can run promotional ad campaigns, add SEO-focused video descriptions, and 10-30 seconds video snippets to entice audiences to view your content. Apart from that, you can:
Grow Socially: Use every integral aspect of social media marketing and also get people to let your platform know through it.
Monetize Ads: According to your marketing planned budget, traditional adverts can give a great head start.
Emailing Prospects: Build a list of mailing contacts of your customers for you to alert them when your planned videos go live.
🔓Start Your VOD Journey With VPlayed
Now that you know how important online video platforms can be for your business, the next big step is finding the right VOD hosting service to power your content.
And that’s where VPlayed enters the chat.
Unlike other platforms, VPlayed isn’t just another video streaming service; it is a fully customizable white-label OTT platform that lets you build your brand, your way.
No middlemen, no branding hassles; just pure control over your content and audience. And, most importantly, no revenue split up. What you earn is 100% yours.
What Makes VPlayed Stand Out?💡
- Stream Anywhere, Anytime – Choose between on-premises or cloud streaming, depending on what works best for your business.
- Content Management – Thanks to its built-in video CMS platform, uploading, organizing, and managing videos is hassle-free.
- Multi-Device Support – Whether your audience watches on mobile, tablet, desktop, or even via progressive web apps, they get a buffer-free viewing experience.
- More Than Just Basic Monetization – Along with standard VOD revenue models, VPlayed goes the extra mile with options like Catch-up TV and Push TV, supporting businesses to maximize their earnings.
But What About Live Streaming?
One common complaint users have about VOD platforms? No live streaming.
And yes, that could be a real concern for many.
But here is the solution—VPlayed’s Live to VOD solution converts live streams into on-demand content.
This means audiences don’t have to worry about missing a moment, and businesses get to repurpose live events into long-term revenue-generating assets.
Bonus Tip – Keep Your Platform Content Fresh
A VOD platform is only as good as its content. If you keep serving the same old videos, your audience might vanish faster than expected.
To stay relevant, businesses must regularly update and market new content to keep viewers hooked and pay for subscriptions on a regular basis.
The Final Word🎣
A best video hosting platform isn’t just about streaming—it is about delivering content effortlessly while growing your brand.
Pick the right partner, and scaling your business through VOD will be as easy as ordering a coffee at your favorite shop.
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Frequently Asked Questions(FAQ):
Video on Demand (VOD) in streaming is where you can watch videos, TV shows or movies whenever you want. VOD gives you the choice to pick what to watch and when to watch it.
Video on Demand (VOD) stores digital content on a server. When you select content, it gets compressed, sent over the internet, then decompressed and played on your device. That’s how you can watch whenever you want, no interruptions.
There are various types of VOD business models like SVOD, TVOD, AVOD and SSAI. These models help video streaming businesses make money by offering different ways for viewers to access content, to cater to different preferences and make VOD more popular.
Setting up a VOD service is a smart move considering the industry’s growth. Work with experts who create VOD websites and implement solutions to make money from your content. That will increase your chances of launching your VOD service in any market.
The main advantages of VOD is to have a steady business model with regular income. This approach reduces the need for big upfront investment especially when using a fully branded platform. Plus, giving customers access until their subscription ends increases their overall satisfaction.
To choose the right VOD service, think about your business, budget and target audience. Look at factors like content licensing, how customizable the platform is, ways to make money and how it can grow with your business. The best VOD service should make it easy to manage and share your content.
VOD has various types: SVOD (subscription-based), TVOD (pay-per-view), AVOD (ad-supported), SSAI (targeted ads in AVOD), PVOD (premium content for extra fee), NVOD (scheduled programming like traditional TV). These options cater to diverse viewing preferences and business models.
