tvod

What is TVOD? The Complete Guide

Hardly can we remember the days when our time was controlled by when our favorite TV shows aired. Before the advent of releasing entire seasons of shows all at once (hey Outer Banks. Thanks, Netflix), or releasing episodes one at a time but allowing viewers to watch on their own time (seen Only Murders in the Building on Hulu?), we had to beeline to the television for the newest episode of Gray’s Anatomy at 8 pm EST or else suffer the consequences of missing it entirely.

But video-on-demand (VOD) has changed all of that. 

Video-on-demand is the way more than half of you consume your television or movies on a day-to-day basis. Netflix, Roku, Prime Video, and HBO all fall under the umbrella of VOD— albeit, all different service models. Some platforms make money by charging consumers an up-front fee (SVOD), while others make their content free, turning a profit by showing ads multiple times throughout a viewer’s experience (AVOD). In this blog post, we will tackle all things TVOD. Let’s jump in.

TVOD Definition

TVOD stands for “transactional video on demand”. “Transactional” precedes the “video on demand” because this model of revenue involves charging users a one-time fee for a certain allotted number of views, whether that is one view, a certain amount of time to view, or unlimited views.

TVOD video streaming stands in resolute opposition to the SVOD model. Whereas the SVOD model has users pay a subscription fee to access a whole consortium of video content, TVOD has users pay individual fees for each bit of content they would like to view.

What is a TVOD Platform?

Some TVOD examples include iTunes, Amazon’s video store, and Sky Box Office. These TVOD services provide a multitudinous selection of TV shows, movies, events, etc. at individual viewing prices, allowing consumers to either watch for a limited period of time (rentals) or purchase an electronic copy of content that they can watch whenever they want, forever.

Advantages and Disadvantages of TVOD

TVOD has some amazing advantages to tote around in its Knapsack of Positive Features. Using a TVOD model allows you to release exclusive content at a specific time, charging a fee for every user that watches your program. This is especially advantageous when it comes to providing content that you know hundreds of thousands of eyes are going to watch, such as an important sporting event or a highly-anticipated video. An SVOD model would not provide you that boost in revenue that would come from charging a per-viewer rate for a piece of content.

There’s also evidence to suggest that viewers are moving away from platforms that utilize AVOD (advertising as a form of video monetization), which is causing streaming platforms to rely more heavily on other methods of generating revenue. One of these options could be TVOD.

TVOD also allows for content creators and hosts to have options for renting or purchasing videos. Expanding types of offerings is positive because it widens a platform’s appeal to other types of audiences. Some people would rather pay one-time TVOD charges for the few movies they watch every year, and therefore a TVOD payment method would appeal to them over an SVOD method.

The disadvantages of TVOD really depend on the types of viewers a content creator is attempting to reach. For example, TVOD would be a less-than-ideal model for viewers who consume a ton of content; the likelihood of their satisfaction paying one-time TVOD charges every time they watch something is low. 

Building a consistent relationship with viewers can sometimes be an issue with TVOD. With TVOD services, people come for a certain video, watch that video, and leave, uninspired to browse anything else that they didn’t come looking for explicitly because it will cost them money to try any other content. The benefit of a subscription-based model is that it allows viewers to try content out without any risk of spending money on content they end up not preferring, which increases viewer retention.

Now, comparison is usually the thief of joy, but in this case, we are going to do a rapid round of comparisons to provide you with the information you need to understand all the different variations of TVOD styles.

TVOD Subcategories

TVOD vs PPV

PPV, or pay-per-view, is a subcategory of TVOD. It allows viewers to pay a one-time fee to watch a show, event, etc. once. PPV is a payment model usually reserved for sports, concerts, or entertainment.

TVOD vs EST

EST, or electronic sell-through, is one of the subcategories of TVOD. In this model, viewers are charged a one-time fee for unlimited viewing of a certain piece of content. Think of a movie you buy on your iTunes or Amazon account.

TVOD vs DTR

DTR stands for download to rent, wherein a piece of content is available to watch for a certain period of time for the price of a one-time fee. It is another subcategory of TVOD, and the most common example is the classic online movie rental.

Which Model of Revenue is Best?

It depends wholly on what you, as the producer of content, want from the content you create. Endavo is a website-building platform that allows content creators to completely customize their websites. You are able to choose what revenue model you want to use in order to craft the viewing experience that you want to provide, instead of having one of the models forced upon you. 

We are unlike any other platform available today in that we allow you to take complete control of how your content is shown and how you profit off of it, because we believe that you should choose how you benefit from content that you create.

Try us out for 30 days and see what we mean. You won’t want to go back. But if you do, no biggie. It’s a free trial, but we’re pretty confident you’re going to love this new way of hosting your content. Reach out to us today with any questions.