What is TVOD (Transactional Video On Demand)?
In the earlier days, people had to be present in front of the TV to watch the scheduled show at a particular time. But now, people can watch any on-demand video at any time from any place and on any device. This is due to the rise of video technology known as VOD (Video on Demand). It changes the way video is sold and consumed. Under VOD technology, there are three major monetization business models as it defines how the video content is sold for users to access this content. Three major business models are SVOD(Subscription Video On Demand), AVOD(Ad based video on demand) and TVOD(Transactional Video On Demand). While launching your own Video Streaming Platform, choosing the correct monetization business model that perfectly fits your business is necessary
The arrival of the internet has changed the way we watch videos online. The ability to deliver video content over the internet networks lead to the rise of video streaming platforms like youtube, Netflix, amazon prime and Hulu. An increase in demand for online video content frees us from the cable networks, geographical restriction and schedule time. It is noted that the number of users in the VOD segment is expected to reach 2226 m by 2025. In TVOD segment it is expected to reach 871m by 2025. Revenue in the Transactional model is expected to reach $ 9303 m by the end of 2021. In this blog, we will cover only TVOD (Transactional Video on Demand).
TVOD (Transactional Video On Demand)
TVOD is the model where users pay for a single video or video series to watch that particular video content. It’s watching videos on a pay per view basis. Under Transactional Model (TVOD), there are two subcategories: Electronic sell-through (EST) and Download to rent (DTR). In Electronic Sell-through (EST), users have to pay once to gain permanent access to video content. Users can have access to the content for a particular or infinite period or users can also download the video content for offline viewing. In Download to rent (DTR), users can access the video content for a limited period for a lesser fee.TVOD is exactly the opposite of SVOD model.
Transactional Model (TVOD) is well known for new video content releases. TVOD generate higher revenue by offering the consumers timely access to new video content. TVOD service attracts the customer and retains them by giving attractive price offers to come again for buying new video content releases. It is expected that TVOD market value to reach $5,138 million by 2025.
TVOD is for exclusive content, and the Transactional model, when combined with other monetization business models, will help get maximum revenue out of it. For example, Many Subscription-based video platform incorporated the Transactional model only for new movies release. Users have to pay a separate fee for watching new movie content to access this content. A few months after release, this movie content will be moved under a free model where subscribed users can watch. This type of online video viewing became a hit during the pandemic period. TVOD works well for highly rated and most viewed content where people buy premium packages to watch that particular video content. Some examples of TVOD are Apple iTunes, Google Play and Amazon Prime. The transactional model is nowadays also being used for education content and sports videos.
Advantages Of Transactional Video On Demand (TVOD) :
- Exclusive content: TVOD model give the video platform owners to keep the content behind a paywall. It allows access to exclusive content only to premium members.
- Suitable for single video release or video series: TVOD drives you more income for a single video if the quality of content is good when compared to other monetization models. It gives full control over video content distribution and protects content from video piracy and copyrights infringement.
- Flexibility in setting prices: In this model, the platform owner can fix the variable prices depending upon the quality of the content. Even platform owners can rent the video content for a lower price, which gives the users to go with the purchase. Having this option will increase customer satisfaction and help in increasing the customer retention rate.
- As an excellent supporting model, it is better to conjunct a subscription-based model with a transactional model to make more revenue in the video streaming business. Using TVOD only for premium video content where users have to pay to access the content otherwise, other video content in the library is for subscribed users.
- According to their preferences, viewers pay only for the content they want to watch. They can also log in only to watch content they want.
- A transactional model with good quality content is well suited for smaller businesses having a lower audience base. It helps in generating more revenue from a single user. It typically generates more revenue in a shorter period when compared to another monetization model.
- Based on video content, video creators can change the pricing accordingly.
- Platform owners have full control over the video as to who can access the video and for what particular duration of time.
Conclusion
People will always pay for high quality and engaging video content. Suppose you are business planning to open a video streaming business. In that case, it opens up opportunities for your business to scale up as the number of people watching videos online will continue to increase in the future. Finally, TVOD is on the rise it is an excellent model to keep in hand, and now it’s the right time to grow your video streaming business with TVOD.