Nowadays, more and more users prefer watching videos to reading. This is true for learning, entertainment, and more. What is video on demand? These are videos that are provided on user demand.
A person can enter a title he is interested in at any convenient time and get a video available for viewing. Online services or upload channels are used for this purpose, so that the video can be downloaded.
The difference compared to regular television is fundamental – you no longer have to wait for a certain time to enjoy watching. You don’t need a cable or satellite connection – everything is available online. All you need is an Internet connection that works smoothly. It doesn’t matter what device you use to watch – it can be a cell phone, tablet, or TV with a smart console.
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The Way Video Works
Your video player receives information from the server that hosts the desired content. This is the principle of video on demand. The providers’ earnings in this case are represented in two models – advertising video on demand (AVOD) and subscription video on demand (SVOD).
The first model is designed for free viewing of favorite videos that contain advertising. The most popular platforms (YouTube, Xumo, and others) integrate small ads into movies and short videos. Earnings from such advertising are possible if several conditions are met:
- a certain duration
- presence of interactive features
- absence of forbidden content
- feedback from the audience
- the interest of the advertiser
AVOD is the best option for people who are not in the mood to invest in watching videos. However, if you want to make money from embedded videos, pay attention to the algorithms the platform uses. Earnings will vary depending on various factors.
The second SVOD model is most often used by well-known platforms like Netflix, Disney+, and Amazon Prime. Customers can subscribe for a specified amount. This allows the provider to access the content on the portal. The frequency of viewing and the number of times a video is opened does not matter. There are no ads in such videos.
On some resources, users can use the free version of AVOD and then switch to watching videos without ads for an additional fee. These platforms are called hybrid platforms. They can include television networks – on TV, all videos are loaded with ads, and then you can watch them on your favorite site.
The Difference Between Video On Demand And Live Streaming
Both types of broadcasts refer to OTT (over-the-top), which are ways of providing content over an Internet connection. Satellite and cable TV have nothing to do with it. Live streaming involves uploading a video that is played back in real time. It’s not video on demand – you can’t watch a clip at any other time. It’s news broadcasts, product launches, competition broadcasts, and more.
The difficulty in playing back a live broadcast is that it requires small packets of data to be sent to each user at regular intervals. This avoids delays during replay. The player cannot store large amounts of content in its cache, so adaptive bitrate is used for live streaming. In this way, information delivery becomes smoother and buffering time is reduced.
Monetization during such broadcasts is much more difficult. Users do not want to be distracted by ads while watching important events. That’s why another solution was chosen – paid online broadcasts, which are not interrupted by commercials.
VOD Software Development
The platform that provides uninterrupted access to video for every customer is called a VOD application. To download the software, you can go to the Roku or AppleTV platform. Plenty of providers have already released applications that ensure on-demand video access suitable for users. This makes it possible to:
- reduce the download speed of the video
- connect with your audience
- gather information for targeting
Developing such apps begins with determining the answers to a number of questions. The first step is to determine what strategy will be used (video with or without ads). Next, you need to develop an interface that is intuitive for users. You should collect content that is interesting for the target audience. The choice of a platform for the creation of software will be no less important. This can be the use of Direct Publishers or code written by programmers.
Prospects of Video On Demand (VOD)
Based on the predictions of Valuates Reports, we can conclude that the VOD market will gain unprecedented popularity. It will grow by about 150% until 2025 (annual growth of 16.02%). This is due to the fact that more and more companies are creating affordable mobile devices that consumers use to watch videos and connect to the Internet at high speed. VOD creators get a lot of new opportunities to popularize and promote videos on demand.
TV is gradually becoming less in demand. It is determined that by 2026 there will be 1.5% fewer videos on TV. Therefore, those who want to create and promote their own content can start using VOD. This will quickly build the trust of users and earn a steady income.