What Is VOD and How You Can Use It to Grow Your Business
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What Is VOD and How It Can Help You Grow Your Business

What is VOD brid.tv

The online video industry has been a booming market for a few years now, and its value is still rising. According to Wyzowl, people consume around 16 hours of video content weekly nowadays, which is a significant increase to just two years ago. These numbers are even higher now due to the ongoing global pandemic. As millions of people are confined to their homes, the demand for VOD services is at an all-time high, and the industry is stronger than ever. According to Statista, the VOD industry has seen a 12% growth in user base and a 15% growth in annual revenue in 2020 alone. The same data predicts the industry will be valued at over $95 million by 2025!

The above should make it clear that pursuing video on demand is an excellent opportunity. Many marketers even believe video is the future of content, which is why so many businesses began constructing VOD-based business models to grow their brands.

But how can you leverage VOD to grow your business? And what is VOD exactly? These are just some of the questions we’re going to answer. But let’s start with the basics…

What Is VOD and What Does VOD Stand For?

VOD stands for video on demand and refers to online video content that users can access at their convenience. Video-on-demand services have various models — they can be free, hidden behind a paywall, or require users to log in or subscribe to access the content. Some businesses that allow free access to their VOD content most often do that for their top-of-the-funnel content. Either way, how you choose to distribute and use your VOD content is entirely up to you.

The most notable examples of video-on-demand services are OTT platforms like Netflix and Hulu, as they are currently the dominant giants in the VOD market. However, more and more businesses are making video on demand a part of their marketing strategies by the day.


Before we move further, we must elaborate on the common misconception that OTT and VOD are synonymous terms. It’s understandable why some people use them interchangeably as they do have similarities, but they also have crucial differences.

You can classify the platforms we mentioned above as both OTT and VOD services, but only because the terms overlap in a few cases. To best illustrate this, here’s a short overview of both:

  • OTT (over-the-top) broadcasting represents content delivered over the internet instead of traditional methods (cable and satellite services). Platforms that fit this category are Netflix, Hulu, and Disney+ and even some VoIP apps like Whatsapp.
  • VOD (video on demand) is prerecorded video content users can access at will without requiring any physical storage medium to start the process.

So what are the similarities, and what are the differences? 

For starters, OTT emphasizes the delivery method (online), whereas VOD doesn’t. Over-the-top services have to be delivered over the internet, whereas video-on-demand can also be delivered via cable or satellite. That means VOD and OTT can refer to the same thing but not always.

Another vital difference is that OTT services can be live broadcasts, while VODs cannot. Video-on-demand content is exclusively prerecorded, meaning that live streaming is not an option with it.

If all of the above was too confusing, here’s a handy illustration to better visualize where the two differ and overlap:

a venn diagram showing the similarities and differences between vod and ott

Types of VOD Monetization Models

Brand’s wouldn’t consider video on demand so lucrative if they couldn’t make money from it! Luckily, there are three different VOD monetization models businesses can use to drive revenue from VOD content.

  • SVOD (Subscription VOD) — This type of monetization model entails locking your entire video library behind a monthly subscription fee. This model is most useful for websites with lots of long-form content and large and dedicated user bases, such as movie streaming sites.
  • TVOD (Transactional VOD) — This type of paid VOD model means you hide all your videos behind a paywall, where users must purchase each of your videos separately. This model is similar to traditional video distribution methods (CDs and DVDs) because you had to pay on a video-by-video basis.
  • AVOD (Advertising VOD) — This type of VOD monetization is the most accessible to broad audiences because it is essentially free. Publishers earn revenue from advertisements they put on their content while users enjoy free access to your videos. YouTube has a highly successful AVOD monetization model, which should prove how effective this strategy can be.

Having various options is fantastic, but which one is the best? Let’s find out!

Which VOD Monetization Model Is the Best?

a picture illustrating sod vs tvod vs avod

When it comes to these VOD monetization models, there is no single best one. Why? Because each of them is best suited for a different purpose. Ideally, your business should be using all three but for various types of content and stages of the marketing funnel. If we had to advise you on how to use these models best, here’s how we’d do it:

The best way to start would be with an AVOD model because this monetization system is most accessible for wider audiences. You should monetize your content solely with video ads until you build a substantial audience and increase your content demand. 

After you have built a substantial viewership, consider adding an SVOD model to your current one. You’d be surprised how effective it is to give your viewers an option to pay a monthly subscription fee to enjoy ad-free content. That’s right — the most loyal users won’t mind paying a small fee to remove ads from their content. Simultaneously, you will keep all the viewers unwilling to spend on the AVOD model and still earn from them.

The final step on your journey would be to add a TVOD model for your bottom-of-the-funnel content. After you have made a name for yourself and created a high demand for your videos, sealing your most valuable content behind a paywall is an excellent way to incentivize people to buy it. Trust us — it works like a charm!

Are you interested in starting to monetize your videos and live streams today? We at Brid.TV can help you!

Why Your Business Should Use VOD

There are many reasons your business should consider using VOD, but here are a few most notable ones:

  • The demand for VOD is at an all-time high Research shows that the current VOD demand and viewership outshines even the popularity of live streaming.
  • Monetizing video-on-demand content can be quite lucrative — Driving revenue with VOD is very much a viable business model, as many brands have built their entire success on it.
  • VOD is infinitely scalable — There are next to no limits to how much you can scale your VOD business. The best part about this industry is that you aren’t limited by factors like labor, time, and cost, at least not in the traditional sense of the words.
  • Using VOD is a suitable strategy for growing businesses of all sizes — Regardless of whether you’re a small business or a huge corporation, videos can help you grow and reach audiences you never thought was possible.

Everything in marketing is about timing, and the timing is perfect for getting started with VOD! If you want to get the most out of video on demand, we suggest you use the current global momentum to propel your business to stardom.

How to Get Started With VOD

how to get started with VOD

If you’ve set your sights on VOD as the next addition to your business strategy, here are a few tips to help you get it rolling.

Get a Reliable Video Content Management System

Having a reliable and user-friendly video content management system is essential if you want to get into the VOD industry. These systems can help you manage your video library, distribute your content, and monetize it. That is why you must look for a video CMS that offers all the features you need to get your strategy running. Here are a few notable things you want to look for in a video content management platform:

  • Video hosting
  • Video encoding
  • Intuitive video organization features
  • Live streaming
  • Real-time video analytics
  • White-label player
  • Wide variety of video monetization features

This step is crucial on your journey, as your video CMS’s quality will significantly impact your revenue and overall success. So take your time, and choose wisely!

Make a Rich Video Library

You must have videos before you can build a viewer base! If you wish to attract an audience and increase your viewership, you should have as much content as possible. Quality always trumps quantity, but having a lacking video library won’t get you far. That is why your first steps should focus on getting as much valuable content as you can. Whether you will make videos yourself or purchase a license and syndicate videos (like movies or anime), it’s entirely up to you! Either way, the more content you have, the higher your chances for success.

Be Consistent

Consistency is crucial in every aspect of marketing, including video marketing. That is why if you want your VOD efforts to succeed, you must release fresh content regularly! Bringing in new users shouldn’t be your only goal as you have to work to keep your old ones as well. Doing so will drive consistent revenue for your business and help it grow, perhaps even creating a snowball effect if you’re lucky!

Promote, Promote, Promote!

After you post your new content, your job is far from done — it’s time to promote it! If you disregard the importance of content promotion, you will hinder your business’s growth, which is something you’ll want to avoid!

You’ll be glad to hear that you don’t need to spend an arm and a leg promoting your content. That’s right — you can easily promote your videos on a budget. For instance, having an active presence on social media means you will always notify your audience whenever you release new content. Also, since there over 3.6 billion social media users worldwide, your potential reach is massive! That can allow you to get your VOD services to various audiences anywhere in the world.

Another budget option to consider is to create an email list. That will allow you to send out newsletter updates whenever you release new content, which is another effective way to keep your viewers up to date.

Overall, you mustn’t neglect promotion! That is particularly true for when your business is just starting, and you need to build a loyal viewer base. After all, leading a company without promoting it is like swimming upstream — it’s near if not impossible.

Start Your VOD Journey With Brid.TV

If you’re looking to get started on your VOD journey, Brid.TV is perfect for you! You can satisfy all your AVOD needs with our state-of-the-art video monetization features and an intuitive and user-friendly CMS. So if you’re looking for a VOD hosting platform that also offers plenty of customizability and monetization options, you’re in the right place! 

If you’d like to try our platform and all of its features for free, send us an email and get yourself a free premium trial today!