What Is Video on Demand (VOD) Streaming and How Does It Work?

 Video on Demand streaming, or VOD streaming, has taken the world by storm since its launch. Many of us use VOD technology without knowing it, probably because we don’t know much about it.


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Youtube, Netflix, and Amazon Prime are some VODs you might have used at some point in your life. After reading this piece, you should be able to decide whether VOD streaming is the right choice for you.


What Is Video on Demand?

VOD is an acronym for Video on Demand. It is a content distribution technology that allows you to access video content, such as TV shows and movies, whenever you want. Essentially, it gives you complete autonomy on how you consume media in the form of videos on your TV, smartphone, computer, or any other device.


Video on Demand doesn’t need a satellite or cable connection like regular television. You can watch videos as long as you have the required internet bandwidth. This allows you to play, pause, fast-forward or rewind a video at your convenience.


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How Does Video on Demand Work?

VOD functions similarly to music streaming services. A video must first be recorded digitally and stored on a video server to make it available on demand.


Next, the video is compressed and sent to your streaming device through a high-speed internet connection server. The video is then available for instant playback, with you in full control of the video’s speed and other features (such as play, pause, etc.).


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Ultimately, a large resource of TV shows, movies, and documentaries is pooled into one location for anyone to access. The access is usually tied to a condition, like making payments through subscriptions or watching ads.



What Types of Video on Demand Models Exist?

When we talk about VOD models, there are three major types. And changes are you use one of them on a daily basis.


Subscription Video on Demand


We're all familiar with the subscription video on demand, also known as SVOD. This VOD model gives users access to content in exchange for payments, also known as subscriptions. There are monthly, quarterly, or annual subscription plans. These platforms may also offer different price packages for individuals, students, and families to make payments more flexible.


As you can imagine, this model is used by the best streaming services, including Netflix, Amazon Prime Video, and Hulu.


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Transactional Video on Demand


In Transactional Video on Demand, you are not charged for opening accounts and accessing online content. Rather, you are charged based on how much content you consume within a timeframe.


This type of VOD usually concentrates on a particular movie, television show, or event. The TVOD model is ideal for unique content with a specific or established audience.


While we don't know what the future of the pay-per-view is, there are still a lot of platforms that use it, including iTunes and Sky Box Office.


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Advertising-Based Video on Demand


In advertising-based Video on Demand, you have free access to watch most, if not all, of the content available. You are not charged for opening accounts nor for how much video content you consume.


The cost of running this model is paid for by the advertisements aired on the platforms. You would only pay for your data use and the time spent watching ads.


However, many platforms that use the AVOD model offer their customers the option of paying subscription fees to enjoy additional features, such as no ads.


The biggest example is, of course, YouTube. But some YouTube alternatives also use this model, including IBM Video Streaming and DailyMotion.


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