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Request a Free DemoWhat Is TVOD? Definition Of Transactional Video On Demand
Published On April 3rd, 2025 Media & Monetization
In recent years, there has been a huge increase in the number of places where you can consume videos. So many platforms are competing with each other for one of the most valuable commodities in the 21st century — human attention.
And, in the process, they make loads of money in different avenues. Some make money by showing ads before or during videos (AVOD), while some others make money by making people pay monthly fees to use the service (SVOD).
But silently, with a global market size of $7.31 billion, another monetization model has been making big strides forward — Transactional video on demand or TVOD.
TVOD, or “Pay-Per-View,” lets you pay for individual videos that you want to watch. You can either rent them for a short time or buy them to keep with yourself. Some big players in this market include Hulu, Prime Video, Roku, and HBO.
These video monetization platform are commonly known as AVOD, SVOD, and TVOD, respectively. Some of the key VOD players in the market are Netflix, Prime Video, Roku, & HBO.
Today, we’ll be taking you through how transactional video on demand will refine your strategies of revenue upscaling in the world of video streaming & know about its whereabouts in this blog post.
Let’s get started.
Generally, TVOD models have the ability to generate volume revenue business making it a clear-cut path for immediate scale-up.
For example….
iTunes make revenue share from a consumer while renting 2 or more films in a month, as compared to Netflix providing its entire catlog on monthly basis..
An interesting fact crosses us which says..
On an average,
“TVOD providers with a multi-country presence, advertise a lower percentage of EU27 and European films: 11% and 25% of all brand promotional spots, respectively.”
Table of Contents
What Is TVOD?
The full form of TVOD is Transactional Video on Demand. It is a video monetization model where viewers pay for individual pieces of content on a pay-per-view basis.
Unlike subscription-based services (SVOD) like Netflix, where users pay a monthly fee for unlimited access, VOD platforms charge viewers each time they want to watch a particular movie or show.
This way it offers users the flexibility to rent or purchase specific content without committing to a subscription.
TVOD can be commonly seen across digital platforms like iTunes, Google Play, and Amazon Prime Video.
More often that not, it’s used for special events like new movie releases, music concerts, fundraisers, or any other niche content not available through subscription services.
Next, let’s jump in to see some of its advantages….
Key Benefits Of Transactional Video On Demand
TVOD or transactional video on demand is the third-most commonly used OTT Monetization solution. In fact, according to a report by Statista, global transactional video-on-demand revenue reached $21.9 billion in 2023. It offers major benefits that most people often overlook.
Coming up next, let’s venture some of its benefits of TVOD over other models.. Also, we can have a look at a few examples:
1. Extract More Money from a Single Video: TVOD allows content creators to generate significant revenue through direct sales from a single video. Imagine you’re a content creator and have put loads of effort into making a special video.
You might prefer not to include this video in the subscription bundle to maximize its revenue potential. However, with SVOD models, you might lack the flexibility to do so. This is where TVOD comes in handy, offering the flexibility you need for monetization.
2. Flexibility for Viewers: TVOD offers viewers the flexibility to pay for and watch content on a per-view basis, catering to individual preferences.
For instance, platforms like iTunes and Google Play Movies enable users to rent or buy movies and TV shows. These platforms provide them with on-demand access without a subscription commitment.
3. Targeted Content Monetization: TVOD platforms allow content owners and creators to monetize specific pieces of content, such as new movie releases or exclusive events. This targeted approach can lead to higher revenue per view compared to subscription models.
For instance, the success of blockbuster movie releases on platforms like Amazon Prime Video’s pay-per-view section demonstrates the effectiveness of TVOD in monetizing premium content.
4. Better Control Over Content: TVOD gives content owners greater control over the pricing, distribution, and availability of their content. They can experiment with pricing strategies and also release windows to optimize revenue generation.
For example, many independent filmmakers and production houses leverage TVOD platforms to self-distribute their movies and also retain creative control over them.
5. Reduced Subscription Fatigue: Out of all the benefits, this is perhaps the most underrated one. The market is flooded with too many choices — hundreds of short films, feature films, documentaries, and other long-form videos are released daily on tens of platforms.
An average consumer spends anywhere between $65 to $90 dollars a month on subscriptions to streaming services. So, there’s a silent subscription fatigue brewing among users.
TVOD gives them an alternative consumption model for viewers who are hesitant to commit to yet another subscription.
By allowing users to pay only for the content they want to watch, TVOD mitigates subscription fatigue and expands the audience base. This flexibility can lead to increased consumption and also revenue for content providers.
6. Monetization of Niche Content: TVOD provides a monetization avenue for niche or specialized content that may not attract a broad audience for a subscription-based model.
For instance, educational documentaries, niche indie films, or live performances can find a profitable audience through TVOD platforms. Eventually, it allows content creators to monetize their work effectively.
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7. Additional Revenue Streams with Flexibility: TVOD platforms offer content creators additional revenue streams by employing flexible pricing models.
In addition to traditional rental and purchase options, creators can experiment with bundling, discounts, and special offers to attract viewers. This flexibility encourages repeat purchases and also enhances overall revenue generation.
For example, offering discounted bundle deals for movie franchises or seasonal promotions can drive higher sales volumes and revenue on TVOD platforms.
What Are Some Examples Of TVOD Platform?
iTunes, Amazon’s video shop, & Sky Box Office are some examples of TVOD.
These TVOD services offer a diverse selection of TV shows, movies, events, and also other content at individual viewing fees, letting customers to either rent or buy an electronic copy of content that they can watch anytime they want, forever.
In short, you have given complete freedom to consumers to utilize the content once you get complete profit share out of it…
Also these most-popular TVOD platforms examples lets it rule in terms of monetization, is that it perfectly makes the most pricey category out of all 3. Thus, it carries a quite a big shot to hit upon, while bringing out the shellings earned from this best video monetization platforms.
Different Types of Transactional VOD Monetization Model
TVOD works well for videos that are special and really grab people’s attention. Users are willing to pay extra for videos that offer something unique and also valuable to them.
People generally like to watch content that matches their interests. In this case, you can provide different types of TVOD options to cater to different tastes.
TVOD vs PPV(Pay-per View)
Another category within TVOD platforms tell us about PPV or pay-per-view. In this it allows viewers to pay a sum for a one-time viewability for watching a show, event, etc. In general this payment model is reserve in sports, concerts, or entertainment.
TVOD vs EST(Electronic Sell-through)
EST or electronic sell-through is one of the subcategories of TVOD. In this model, viewers are charged with only one-time fee for limitless viewability of certain piece of content. They can view at their own discretion.
TVOD vs DTR(Download To Rent)
DTR represents download to lease, wherein a piece of content is accessible to look for a specific timeframe at the cost of a one-time expense.
It is another subcategory of Transactional VOD, and the most widely recognized model is the exemplary web-based film rental.
A happy news for content aggregators comes with this satisfying fact …
Did you know: “ The business revenue income in the TVOD which also means Pay-per-View section is estimated to reach with a ground figure of US$10.42Bn in 2022! ”
Moving on let’s see..
How Is TVOD Different From Other Monetization Models?
Subscription-based Video on Demand (SVOD), and Advertising-based on demand video (AVOD) or Premuim-based video on demand (PVOD) are the three main models. These can be leveraged by video streaming owners, creators, broadcasters like you in many distinctive ways.
Further down the line, we’ll give you the brief of all 3 top monetization models..
- SVOD
In subscription video on demand (SVOD) a large library of video content is created for a big set of targeted audience and also give them the access for a longevity period in order to make consistent & healthy revenue.
- PVOD
Likewise, Hollywood Studios are analyzing another alternative of TVOD, called as Premium Video on Demand.
- AVOD
There’s also a stated fact that, viewers are shifting away from platforms that use AVOD (advertising as a form of video monetization), & what AVOD is?, in order to request streaming companies to rely more heavily on alternative revenue streams.
Distinctions Between TVOD And SVOD Model
SVOD (Subscription Video on Demand) and TVOD (Transactional Video on Demand) are two distinct monetization models in OTT platforms.
In SVOD, these platforms charge a recurring subscription fee to grant unlimited access to their content library. Netflix and Disney+ streaming services are good examples of SVOD.
Conversely, TVOD operates on a pay-per-view basis.
Over here, users typically pay for individual pieces of content, commonly movies, musical concerts, stand-up comedy shows, or some exclusive TV shows. Platforms like iTunes and Google Play Movies are examples of TVOD.
While SVOD offers unlimited access for a fixed fee, TVOD allows users to rent or purchase specific content without a subscription commitment. It provides more flexibility but potentially higher cost per view.
Is it Worth It To Take Up Transactional Video On Demand Platform?
By now, it should be obvious that TVOD is a significantly stronger monetization alternative for a vod platform than many people think.
As we all know the importance of a video helping to rise your revenue scaling having constant growth, it’s essential to plan it for fetching them in leaps for generating bountiful ROI. And, given the turbulence in the online video market, it’s safe to predict that TVOD will only gain in popularity.
Who Should Choose TVOD and Who Shouldn’t?
If you’re a content creator or aggregator looking to monetize individual pieces of content rather than offering a subscription service, TVOD is the best bid for you.
Creators like independent filmmakers and short filmmakers can deploy TVOD to sell their movies directly to viewers without relying on a standard subscription model.
Similarly, niche content producers, such as creators of educational documentaries or specialized tutorials, can also benefit from TVOD. This model allows them to target a specific audience who are actually willing to pay for their unique content.
Finally, and most importantly, TVOD is ideal for one-time events like live concerts or sports matches, where viewers may not want a subscription but are willing to pay for exclusive access.
We hope this article helped in clearing your doubts about the TVOD monetization model.
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Frequently Asked Questions (FAQ):
Transactional video on demand is used in a video streaming platform where content broadcasters get to leverage on exclusive monetization method. Basically, it allows users to access content on pay-per-view basis which is much different than AVOD & SVOD models. Further to that, the solution is split into providing permanent or temporary access with one-time payment. Ultimately, it gives media publishers a chance to release their online blockbusters.
In TVOD there are two subcategories which are EST & DTR. With electronic sell-through consumers can comfortably make a single payment to own content indefinitely. Whereas Download to rent helps you to gain a small fee from consumers with limited period of content accessibility. In SVOD, you can provide users with an entire calong of content for a flat rate that’s typically charged on monthly or yearly basis. You can include ad-free content too.
Some of prime reasons to choose Transactional VOD is that it caters to those customers who are simply interested to view particular content for which they pay to see. Indeed TVOD services increases the value of each piece of content with its pricing. Also there is a chance of gaining prospective userbase when you set any range of price instead of charging them with higher membership cost. Also price flexibility assures if you can make content accessible for shot period or allow users to retain it permanently.
It is certain to have an approximate estimation for operational margins, before the business is kickstarted. Definitely for that matter, you never run into the risk of bandwidth exploitation, whether it’s in the case of single of group of users. The infrastructure costs in TVOD platform concerns with the cost of server along with CDN to stream videos in particular size, etc.
When we define what is TVOD, one-time costs are likely to be associated with it. Usually, potential users seek many other means to procure video content for free, thereby increasing the dominant prevalence of content piracy. All the more, there are chances where users will download the video content & share it among the common social circle, for saving one-time access fee or split the fee.
While we unveil the meaning of TVOD, we come to know that users can get flexible options. Instead of watching content with free access having couple of ads sprinkled in, users can pay a specific price for a piece of content. They tend to have an ad-free experience thereafter. This is due to lot of popularity gained in TVOD. Some of the examples of TVOD are Apple iTunes, sky box office, youtube movies, Google play etc.
