The Video-On-Demand (VoD) industry is getting the greatest attention these days, and more and more people want to watch videos online whenever they desire. Part of this popularity is because “millennials are busy” and want to manage their time based on their preferences.
Since technology is facing constant innovations and developments, customers expect VoD platforms to improve their services and create a better user experience regularly. A business, enterprise, or organization without evolving features that ignore customers’ desires will soon become obsolete.
Professional VoD platforms will play a crucial role in businesses’ success. Before implementing a VoD platform, it is necessary to know about its workflow. Today we will review what is a VoD platform exactly. Further, we will discuss how a VoD platform works and determine the feature-by-feature basis. Before we dive into our in-depth specification, we will run through the concept of video on demand.
What Is VoD?
VoD, in simple terms, is a video platform distribution system that provides access to video content to the user in a process, unlike traditional televisions.
In VoD, there is no need for conventional TV equipment, and the user is not limited to the schedule of the content broadcaster’s network. In other words, the VoD user can access video content in the service library whenever possible through all their smart devices (TV, phone, laptop, and tablet).
Televisions, as we know them, were the most essential video content distribution channel in the 20th century. In 1995, with the start of Internet and IPTV services, users started to use new ways to consume video content. This new direction of demand led to the peak of the development and supply of VoD services and even increased the purchase of personal computers.
As we entered the 21st century, the infrastructure development for VoD service delivery accelerated. Unlike traditional television, these services require a high-speed Internet connection instead of requiring a cable subscription or using an antenna. In 2000, a codec JPEG2000 was developed, making it possible to distribute video content with a smaller volume and lower bandwidth and speed requirements.
By 2000, giants such as Sony, Paramount, Universal, and Warner Bros., along with several other reputable companies, developed the Digital Cinema Initiative standard to implement a typical specification for delivering video over the Internet.
Internet TV was a concept that was born from VoD services. User-side applications such as the Apple iTunes online content store and smart TV applications such as Amazon Prime Video resulted from this concept, allowing users to rent or buy video content and display it on various devices.
As a result, other services have developed that offer viewers a broad range of entertaining video content in addition to movies and television series. Netflix is known as the world’s largest streaming service. Still, it has its competitors, Hulu and Disney Plus, both of which charge monthly subscription fees for their services.
These services, by receiving a monthly fee, provide the user with access to the entire content in their library, including TV shows, movies, serials, and their production programs.
What Are the Uses of VoD Services?
The concept of VoD is not new. The first commercial VoD service was launched in Hong Kong in the early 1990s. After that, Europe and the United States helped spread these systems worldwide. So currently, the United States has the highest global usage rate of VoD. They also use VoD services in educational institutions and environments that provide video conferencing.
VoD is also offered in most high-end hotels. Needless to say, some significant airlines use VoD services to entertain passengers during the flight. This service is broadcast on the plane with personal screens installed on the backs or handles of the seats or with the help of portable broadcasting devices.
Some VoD services, like Netflix, have defined a subscription right for their users. This way, users can pay a monthly subscription to this service and access its contents. Of course, some services use an advertising-based model to earn money. Therefore, the companies providing these services have free access to the content for their users. Still, instead, their primary income is from the sale of advertisements.
Internet TV is one of the types of VoD that has gained many fans. In addition, accessing VoD through desktop applications such as iTunes is also possible.
How Does VoD Technology Work?
The video content must be converted to digital format and then stored on a server to provide on-demand video. The video is compressed before transmission over the Internet connection.
When the data is received, it is decoded and stored in the user’s device, in which case features such as stopping the program or going forward and backward are also provided.
TV VoD systems can stream their audio and video content through a digital television receiver commonly known as a Set Top Box, computer, or other devices.
VoD allows the user to immediately watch the contents at the moment of receipt or download and save them on the computer, digital video recorders, or portable players and watch it whenever they want to.
Advantages of VoD Platforms
VoD platforms have three main advantages, which will be explained below
Watch Videos Anytime, Anywhere
On VoD platforms, users can stream their content whenever they want and on whatever device they choose, unlike TV programs that are only broadcast live. So VoD platforms do not rely on broadcast timing.
The Right to Choose for The Audience
Your users and audience have the right to choose what content and video to view. Compared to traditional TV programs, on VoD platforms, users can decide what content to watch based on their taste.
Playback Control
Users can control the video being played. That is, pause the video, moves to a specific part of the video (Seek), slow down, or speed up the playback speed. All these together make a VoD platform that allows audiences to watch videos in a convenient and accessible way.
Disadvantages of VoD Platforms
However, all of these advantages also come with some disadvantages, so it is important to weigh both sides carefully.
You Need to Stay Connected
VoD services content is always available online so you need to be connected to the internet for watching videos.
Using Pre-recorded Videos
Unlike traditional broadcast television, VoD uses mostly pre-recorded content that viewers can access when they wish to.
Bandwidth Is Required
Watching online video contents requires significant bandwidth to play the best quality without slow-down.
Why Is VoD Important for Businesses?
Video on demand is an excellent strategy for several reasons. First, quick and constant access to content is valuable to customers who expect it at any time. Think for a moment about how many people you know are using channels like Netflix, Hulu, Amazon Prime Video, and YouTube Red. There is a massive demand for this type of content. And, of course, if your consumers want content and it’s not available right away, they’ll go elsewhere.
In addition to being a supplemental strategy to original content marketing, VoD models offer excellent ways to monetize video content. This is an additional revenue stream, which always helps your business to be more profitable.
There is no limit to how much you can earn, so the more customers you sign up, the better for your business. Unlike conventional products that are limited in time, labor and cost, there is no limit to how much you can produce content, attract customers, and make a profit.
Wanderlust TV is a great example of this. Wanderlust is a traveling yoga festival. They created the Wanderlust TV channel as their source of branding and marketing, which is also an additional source of income for them.
VoD content provides another way to connect with your target audience, even if it’s not the primary way your business communicates with your audience.
Video is king, and nothing is as valuable as that. Therefore, it is worth mentioning that anyone who does not use it has deprived himself of a launch pad.
Benefits of VoD for Businesses and Users
The VoD industry is predicted to grow to a total value of $90 billion in foreign countries by 2024 despite the Covid pandemic as one of the most promising sectors of the global economy in 2024. Though some of the most prominent players, such as Netflix and Disney Plus, have dominated the market for many years, this figure is not surprising.
For users and followers of a brand, VoD is a great way to watch long-form video content, including series. Since the audience does not need to look for programs according to the schedule, they will be more than traditional media.
These media have no restrictions on what users can watch, both in terms of watching videos and the amount of time they have to spend on it, as the user chooses.
On the other side of the VoD, where businesses are located, they also get countless benefits. Having a fixed income from the sale of video content is only a part of this. The types of interactive media we met earlier can generate high business revenue through various methods.
As a result, the user and businesses are in a win-win game.
Difference between Live Streaming and VoD
The difference between live streaming and VoD comes back to how users interact with these services. Content on VoD is pre-recorded and pre-uploaded, so users can pause, fast forward, rewind, and control the video the way they want.
However, live streaming content is published in real-time, so the audience must be present on the platform as it is broadcasting.
Although it is possible to watch replays of live streams on many platforms, and live streaming services may be part of a larger VoD platform, it is not feasible to control the content streaming in the same way as a VoD.
Technically, live streaming requires more resources compared to VoD. In live streaming, content is delivered in smaller blocks, but there are more blocks than VoD. Therefore, shorter transmission packets minimize the delay between the audience and broadcasters used for remote viewing.
Top VoD Platforms in the World
As mentioned, streaming services are one of the most popular subcategories of VoD in the world. The user will have access to a massive collection of video content only by paying the subscription and does not need to pay a separate fee to watch the video. In addition, some of them provide users with free access to some of their exclusive content, which attracts more consumers.
Among the top services of the current VoD industry, the following can be mentioned:
Netflix: a huge collection of engaging video content with an optimized user interface and a convenient video recommendation system. Among its weaknesses, we can point out the relatively high cost compared to others ($99.8 per month) and the addition and deletion of programs from time to time.
Dacast: Dacast offers both live and VoD streaming services. This unified streaming solution offers advanced video hosting features, including monetization, top-notch security, video APIs, and global video distribution. Dacast platform has some powerful features that can be utilized for hosting and streaming video-on-demand. The system is ideal for organizations that would like to conduct both live and on-demand video broadcasts and businesses and professional organizations.
HBO Now and HBO Go: the streaming service of the famous and reliable HBO network with exclusive professional content, exciting movies, and exclusive news programs.
Of course, its cost is much higher than competitors ($14.99 per month) and some programs are also removed from the service.
Muvi: With many features and a flexible platform for video creation, Muvi is the ideal platform for those seeking a high-end video platform at a competitive price.
One of Muvi’s most compelling feature is its wide array of tools to monetize video content. These tools make Muvi an attractive option for organizations that wish to monetize video content through advertising subscriptions or pay-per-view models.
Disney Plus: The Disney Plus streaming service is offered at a reasonable price and is full of attractive and popular content with content options in UHD quality. We can also mention quality problems and user interface disruption among its weaknesses.
In the next ranks of the top VoD services, we can mention the following options:
- Uscreen
- Amazon Prime Video
- Wistia
- Fubo TV
- YouTube
What Is the Future of VoD?
Due to the changes in people’s lifestyle, more people are predicted to cut the cable and utilize modern interactive methods of communication in the coming years.
As the number of users of these networks increases, more businesses create their own interactive media. However, the presence of interactive media giants (Netflix, Disney, etc.) will complicate the path.
The 21st century will be an excellent time to enter this platform. Many small businesses have launched their interactive media, as producing professional and valuable content could attract many users. If you plan to join this new money-making industry, hurry up!
ArvanCloud Video Platform Prices
ArvanCloud Video Platform service allows content producers and distributors to convert their content to different formats in a secure cloud environment without infrastructure concerns.
By checking out this link, you can find out about the prices and different VoD plans of ArvanCloud and choose one of the plans for your business.
