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What Is VOD (Video On Demand)?

Video is the most preferred media content as it keeps the user engaged and entertained. Demand for video keeping on increasing as many people use the internet to watch videos. Many businesses have started their VOD Platform to use video as a tool to create brand awareness, to get in touch with clients and to promote products and services. Demand for video is on the rise as video creators are provided with an opportunity to take the video content to the next level. Here is a detailed guide on What is VOD (Video on Demand) streaming.

What Is VOD?

VOD is a technology that enables users to consume video content from a media library at any time, from any place and on any device. It is a new way of streaming video content on-demand from the comfort of your home and on any compatible device. It is just the opposite of the traditional way of watching video content through satellite or cable tv networks, where you have to wait to watch a particular show at scheduled broadcast time. Users will have complete control over the video content as they have the option to play, pause, rewind, stop and fast forward the video content.

Examples of the VOD platforms are Netflix, Amazon, and Hulu. Video On Demand is not meant only for entertainment purposes. It can be used in various other industries like Health and Fitness sector, Yoga classes, Dance sessions, eLearning Classes, Training programs, Religious and Marriage activities and Product and Service promotions.

Many businesses nowadays use video on Demand platforms for professional uses. Many VOD platforms providers are present in the market that builds independent Video on Demand platform for business owners, video creators and filmmakers. Businesses use VOD platforms to scale up their business by reaching more clients through video streaming.

VOD Vs Live Streaming

Both VOD and Live streaming refers to the streaming of video content. There is some difference between Live streaming and Video on Demand. Live streaming is a way of streaming video content in real-time. Live streaming gives you the feeling that you are present in that particular event when it’s happening. It is simply watching the live broadcast of news and sports live events online.

Many businesses nowadays use live streaming as a product and service promotion tool. It is also used for product demos and getting customer feedback. Live streaming helps reach more people and have an opportunity to interact with people.

VOD is just a way of streaming prerecorded content from the media library at your convenience. You can watch videos on any compatible device from any place.


OTT or Over The Top Refers to technology enabling users to watch video content delivered through the internet rather than the traditional cable and satellite networks. It is simply the streaming of video content through internet-connected devices. OTT supports live streaming as it you can watch the live event through an internet-connected device.

OTT Refers to the way the content is distributed. Video On Demand refers to the way the content is consumed. VOD is a way of streaming prerecorded video content where you have control over the video content to pause, forward, rewind and stop.

How does VOD (Video On Demand) Work?

Video files are first stored in the asset library in uncompressed format. Transcoders compresses the video and converts it into multiple bitrates to enable Adaptive Bitrate streaming. This compressed video file is encoded and stored in servers ready for transfer when the user invokes a request. These files can be transmitted via streaming protocols HLS or MPEG DASH. Security feature DRM encryption protects video content and video transferred through Content Delivery Networks(CDN). The video is decompressed and decoded in a viewable format to play on a VOD player when it reaches the user.

Video Monetization

Video On Demand is also a great tool to make money. Video monetization is a way of making money by publishing videos on the video platform. Users can watch video content from the media library in return. They pay money monthly recurring fees or one-time payment fees. The most common Video monetization methods are SVOD, AVOD and TVOD.

Subscription-Based Video On Demand(SVOD)

SVOD is the most commonly used video monetization method. In this method, users can access the video content in the media library infinite times by paying recurring fees it may be monthly or yearly. This monetization method is the best profitable method as it generates a continuous flow of income.
Example: Netflix

Advertisement based Video On Demand (AVOD)

Users access the video content freely as they don’t need to pay any fees for watching videos. While streaming video on this platform, they will encounter advertisements between videos. It might be at the start, middle, or end of the video.

Ads may be skippable or non-skippable. Video platform owners will get paid for placing ads in between videos. Video platform owners can search for a company to place ads on their platform, or you can also approach advertising agencies who can connect video platform owners with companies searching for ads space.
Example: Youtube

Transaction based Video on Demand (TVOD)

In this method, the user can access the video content by paying one time fees. They can download the content permanently for their use or rent the particular video for a specific period. This method is especially suitable when releasing exclusive content as it urges subscribers to access the specific content. This method can generate large income for a particular time.
Example: Apple Itunes


Birth Of Video On Demand Streaming has changed the way of consuming video content. It gives the capability to watch video from anywhere and at any time. Many businesses have started using VOD Platform to scale up their growth. Video Streaming has many benefits for both users and VOD owners. VOD is the future and will be the only way to stream video content in future.

Top comments (4)

Sloan, the sloth mascot
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padmapriyam13 profile image
Padma Priya M

Right now video is the most preferred content and demand for VOD streaming will increase in upcoming years.

krithiga profile image
krithiga • Edited

Birth of video on demand (VOD) streaming has changed the way users consume media content.It gives the flexibility for users to watch video content from anywhere and at any time.