Understanding Video on Demand: How VOD Works

If you’re looking to create your own Video on Demand (VOD) platform, you’re stepping into an exciting and rapidly growing space. Video content is more popular than ever, and with the right strategy, you can tap into this demand and bring your vision to life.

A VOD platform can give you the freedom to control your distribution and engage with your audience on your own terms.

However, building a successful platform takes more than just uploading videos. There’s a lot to consider—from understanding the technology behind the scenes to knowing the different types of VOD services.

In this guide, we’ll walk you through everything you need to know to get started, avoid common pitfalls, and set yourself up for success. Let’s get into the nitty-gritty of creating a VOD platform that stands out and keeps viewers coming back for more!

What is VOD?

VOD, or “Video on Demand,” is a content delivery system that lets viewers watch videos anywhere they choose. As the name suggests, it’s on-demand, meaning the content is not scheduled like cable TV programs or live-streamed like sports broadcasts or news.

VOD originally started with pay-per-view broadcasts of live events and movies over cable and satellite connections. Over time, however, it has shifted to being primarily delivered over the Internet.

This transition has made on-demand content more accessible, allowing viewers to stream their favorite shows and movies at their convenience. As long as they have sufficient network bandwidth, users can enjoy a seamless and uninterrupted viewing experience from virtually anywhere.

Popular Use Cases and Examples of VOD

VOD might sound like an old term, but that’s only because it has become the foundation for many newer forms of content delivery. It still functions underneath the infrastructure of many popular services that you might have probably heard of.

Let’s look at some of these examples here:

Streaming Platforms: These are the industry giants of today’s content delivery sector, and they’re built on the principle and functionality of VOD. These platforms have replaced traditional cable by offering tiered pricing and vast content libraries at the tip of people’s fingers—ready to deliver content at a moment’s notice.

Popular examples are Netflix, Hulu, Disney +, and Amazon Prime Video.

Fitness Applications: These apps take the convenience of VOD to the next level by offering both on-demand and live-streamed classes. They offer users access to a wide variety of content geared towards body fitness, with lessons on yoga, pilates, high-intensity interval training, and more.

Popular examples include Nike Training Club and Peloton.

Educational Content: VOD has also opened up various avenues for education, with free and paid courses and classes available on many different platforms. Such platforms make learning highly accessible and empower users to expand their knowledge at their own pace.

Popular examples are Coursera and MasterClass.

Benefits of Starting a VOD Business

Current market trends and consumer preferences show that starting a VOD business offers a range of compelling benefits.

1. Preference for Video Content: People are actively seeking out video content more than ever, as it is often more engaging and informative than other types of content. 

Studies show that videos can significantly increase understanding of products and services, with many consumers being convinced to make purchases after watching brand videos.

2. Shift to on-demand Services: VOD services provide viewers with unmatched flexibility and control over what they watch and when they watch it. This “cord-cutting” shift is becoming increasingly popular as people move away from traditional cable TV to on-demand streaming services.

With VOD, users can access a vast array of content at their convenience, making it a preferred choice for many.

3. A Direct Line to your Audience: Starting a VOD business allows you, a content creator, to bypass traditional gatekeepers, such as network executives, and directly reach engaged audiences. 

With the right platform, you can produce and distribute videos independently, gaining greater control over your content and revenue.

This democratization of video creation opens up a wealth of opportunities for entrepreneurs looking to tap into the growing demand for online video content.

As you begin your journey to create a VOD platform, consider partnering with experts who can provide specialized tools and insights to ease the process. MediaMelon‘s SmartSight QoE solutions provide in-depth insights into platform performance as well as Quality of Service (QoS) and Quality of Experience (QoE) metrics. Using this information, you can make sure your platform is always optimized for a great streaming experience..

If you’re ready to take the next step and build your own VOD service, let’s take a look at the technology that makes this all possible. Knowing the mechanism behind VOD streaming will give you a better idea of how this content delivery system comes together.

The Mechanism Behind VOD Streaming

To deliver a top-notch VOD experience, you need to have several important features in place. Understanding these key elements is essential for optimizing your VOD service and keeping viewers engaged.

The following features will ensure that your content is easily accessible, of high-quality, and enjoyable for users.

Video Hosting

A VOD platform requires a solid, cloud-based infrastructure for video hosting to ensure that content is delivered securely and efficiently. Cloud hosting allows for scalable storage, making it easy to manage large volumes of video content without compromising on performance.

A cloud-based solution reduces the risk of downtime or slow performance as the content is stored across multiple servers in various locations. This helps to optimize the viewing experience by ensuring that videos load quickly and stream smoothly, even during heavy traffic.

A cloud platform also makes it easier to update, deploy, and maintain the service, allowing for faster rollouts of new features or content without disrupting the user experience.

Content Delivery Network

A content delivery network or CDN stores and distributes video content from multiple servers located in various geographical regions. This setup reduces the distance the data needs to travel, which significantly improves load times and minimizes buffering.

By using a CDN, you also increase the broadcast capacity of your platform. CDNs are designed to handle large volumes of traffic, making them ideal for scaling as your audience grows. This is especially important during peak times when many users are accessing content simultaneously.

Encoding and Transcoding

Encoding is the process of converting raw video content into a digital format that can be streamed online. Transcoding refers to the conversion of video files from one format or bitrate to another. The goal of both is to ensure that the video is available in the best possible format for the device and network conditions of the viewer.

With the help of proper encoding and transcoding techniques, video content can be adjusted to suit a wide range of devices and network connections. Smartphones, tablets, smart TVs, and computers each have different display and processing capabilities. 

By encoding videos at multiple bitrates, you can ensure they are available in varying levels of quality. Proper encoding and transcoding facilitate adaptive bitrate streaming and adaptive playback.

• Adaptive bitrate streaming technologies like HLS and DASH automatically adjust the video’s bitrate based on real-time network conditions.
• Adaptive playback ensures that the video adjusts to match the viewer’s device capabilities, from small mobile screens to large high-definition televisions.

By using MediaMelon’s advanced analytics, you can ensure your encoding strategies always meet viewer expectations effectively.

With these essential features in place, your VOD platform can offer a seamless and high-quality viewing experience. However, having a platform ready is only the first step because now you’ll have to decide which type of video on demand service it should be.

So, let’s check out the different types of video on demand options you can consider for your platform.

Types of Video on Demand Services

VOD services are differentiated based on how users access and pay for content. The three main categories of VOD are Subscription VOD (SVOD), Transactional VOD (TVOD), and Advertising VOD (AVOD).

Let’s look at each of these in detail.

Subscription VOD (SVOD)

Subscription VOD platforms provide users with unlimited access to a vast library of content for a recurring monthly or annual fee. This model is based on offering an all-you-can-watch experience, where users can stream movies, TV shows, and other video content without worrying about individual charges.

The subscription model is popular because it offers flexibility and convenience. After one-time payment users can watch content on their own schedule without being tied to specific viewing times or irrelevant ad breaks.

Notable examples of SVOD services include Netflix and Hulu, which have revolutionized the way we consume entertainment, with large content libraries and original productions exclusive to their platforms.

Transactional VOD (TVOD)

In contrast to subscription-based models, Transactional VOD allows users to purchase the rights to watch a specific piece of content. With this model, viewers pay for individual rentals or purchases, which means they only pay for what they watch.

This option appeals to users who prefer not to commit to a subscription but still want access to premium content. They can pick and choose which content to watch and also build their own online library of their favorite hits.

Amazon Prime Video offers a combination of subscription and PPV options, where users can either access content through their subscription or rent/purchase specific movies and shows.

Advertising VOD (AVOD)

Advertising VOD platforms offer users free access to content but with the catch of advertisements being inserted into the viewing experience. AVOD is an excellent model for both users and content providers, as it allows users to watch for free while advertisers gain exposure through ads.

These platforms often include interactive elements, giving viewers a chance to engage with the ads in a more dynamic way. Surveys or click-through links are common examples of interactive ads that can engage the user and provide more revenue to the platform.

Popular examples of AVOD platforms include YouTube and Peacock, where users can watch content without a subscription but with ads between or during videos.

These different types of VOD services cater to various viewer preferences and business models. Your choice will ultimately depend on the primary revenue model you plan to adopt for your platform.

You’re now ready to get work started on your video on demand service. But before you begin, check out some helpful tips that will guide you to having a flourishing VOD platform.

Tips for Building a Successful VOD Platform

To succeed with your video on demand platform, you’ll need to carefully plan and execute several key strategies. With these, you’ll have the best chance to make your platform stand out and make sure you have engaging content that resonates with your viewers.

Here are some essential tips to help you build a successful VOD platform:

Build a Comprehensive Content Library

Before launching your service, it’s crucial to have a substantial library of content available. This is especially important if you’re adopting a subscription-based model.

Having enough engaging material will make your service attractive to potential subscribers and make sure they feel they’re getting value for their investment. Ensure that your content is diverse and aligns with your target audience’s interests, as this will help you stand out in a competitive market.

Develop Your Own Website and Apps

Creating a dedicated VOD website and mobile or TV apps is key to monetizing your content effectively. While building these platforms from scratch can be costly and challenging, there are distribution platforms that can help you create customized apps more efficiently.

Having a professional, user-friendly platform ensures that viewers can easily access and enjoy your content, which is crucial for retention. Whether you choose to develop apps independently or through a third-party provider, focusing on the quality of experience is vital.

Maintain Regular Content Updates

To keep subscribers engaged and attract repeat viewers, it’s important to continually refresh your content library. Regularly uploading new videos ensures your audience always has something fresh to enjoy, and it encourages them to return to your platform.

Consistent content updates are especially important for SVOD models, where users expect a steady stream of new material. Listening to audience feedback can help guide the type of content you create next, ensuring it aligns with viewer preferences.

With these essential tips in mind, you’re now equipped to launch and grow your own successful VOD platform. Let’s wrap up with a look at the final considerations for your VOD journey.

Conclusion

Video on Demand (VOD) has become a fundamental part of how content is consumed. It’s what the modern viewer considers the normal way to watch videos. As a creator, this shift in consumer behavior opens up incredible opportunities to build your own VOD platform.

As the demand grows, make sure to evolve your platform by focusing on quality of service and experience, keeping the viewer in mind. When you offer excellent QoS and QoE, your platform has the potential to reign in a significant viewership.

Don’t forget that video analytic tools are your best friends in refining your platform. Tracking viewer behaviors, engagement levels, and content performance will help you make data-driven decisions and optimize your service to better serve your audience.

If you’re in the market for a leading video analytics provider, look no further than MediaMelon. Our SmartSight QoE solutions give you an in-depth look at your streaming data and offer valuable intel on viewer behavior.

With data-driven insights, you can cultivate a loyal consumer base and unlock higher NPS, ad revenue, and user engagement. Book a demo with our video experts to see how MediaMelon can be tailored to meet your OTT platform’s unique needs and deliver powerful results in action.