How to Create a Video on Demand Business: A Detailed Guide to Get Started a VOD Website

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The VOD industry is experiencing explosive growth if we go by reports and statistics. Reports show that video constitutes about 82% of internet traffic, with users consuming over 16 hours of video content weekly.

This surge has greatly propelled the demand for video-on-demand services to levels that are unprecedented. 

To give you some context, in 2025 alone, the video-on-demand (VOD) sector witnessed a 12% increase in user base and a 15% revenue growth.

This signals a solid, robust expansion of the VOD industry. 

According to Statista, the VOD market is poised to achieve a market value of approximately $126,548 million by next year, that is 2025.

And if you know how the free market economy works, then you should know that businesses will always try to capitalize on trends.

Over the last few years, so many businesses have been launching their video content monetization strategies using some of the best VOD platforms available in the market. 

This article will explore the impact, key sectors, and advantages of the VOD business. In the end, we will also offer some practical insights on launching your very own VOD website.

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What is Video on Demand?

Video on Demand (VOD) is a service that allows viewers to select and watch the video content of their choice at their convenience, rather than at a scheduled broadcast time. 

Why is it such a big deal?

Because VOD platform or VOD solution providers have fundamentally changed the way we consume media.

It provides almost instant access to a vast library of movies, TV shows, documentaries, and other content genres which are unprecedented in the history of streaming and broadcasting.

In VOD, users can easily stream or download videos with whatever devices they use like smartphones, tablets, smart TVs, and computers.

What is the VOD Business Model?

The VOD business model allows content providers to distribute and monetize their videos directly to consumers. The big advantage: they can do this by bypassing traditional broadcast channels. 

This direct-to-consumer approach has been revolutionary and embraced by a string of popular platforms like Netflix, Amazon Prime Video, Hulu, and Disney+. And how do they earn money?

These platforms offer subscription-based, ad-supported, or pay-per-view models. This way users pay for access to content either monthly, per view, or through advertisements.

For example, Netflix offers a subscription-based model where users pay a monthly fee to access a wide range of movies and TV series.

Amazon Prime Video allows users to rent or purchase movies and shows on a pay-per-view basis. Disney+ combines both these models — it gives subscription-based access to exclusive content from its extensive library of movies and TV shows.

Type Of Industries Benefited Using Video On-Demand Technology

Due to the adaptable nature of VOD technology, many niches are using it to streamline their operations and grow their business.

A report by Wibbitz suggests that 56% of marketers currently implement video in their content strategy, and another 61% plan to do it soon. 

With HD video on the frontline of business and communications, VOD websites are becoming more and more relevant.

Video-On-Demand: Use Cases

Here are the top 5 industries leveraging video-on-demand technology in their business.

1. Media & Entertainment

The media industry is all about providing information and entertainment to audiences. With content becoming increasingly video, VOD technology helps build a business to deliver it effectively to viewers.

It deals with media content related to film, radio, and television, where the genres range from movies, TV shows, radio programs, music concerts, sporty events, news bulletins, talk shows, etc.

2. Sports & Fitness

VOD has added a new dimension to this online fitness platform industry by introducing recorded events that viewers can watch as many times as they want.

Sports VOD enable gamers to capture momentary experiences and post videos on their dedicated channels.

The same applies to fitness enthusiasts who try to stay fit with accessible online fitness tutorials, takeup Instagram fitness challenges, personal training sessions, and more using a VOD platform.

3. Education

Today, Education is not only confined to classrooms. With the introduction of e-learning, students can learn remotely through recorded videos, lecture capture flipped classrooms, and more, all made possible due to video on demand.

This industry has captured many eyes benefiting from the best online video platforms.

One of the finest examples from UNESCO lets us know that distance learning programs are recommended to cope with the extensive impact of a pandemic on the education sector.

4. Enterprises

VOD website helps businesses with their communications by effectively exchanging messages, training materials, instructional videos, and promotional content among the team members and the end-users.

Real-time conversation apps like Zoom, Skype, and Slack are perfect examples of how increased interconnectedness among employees results in a corresponding increase in productivity. 

5. Religious

VOD technology helps religious communities spread discourses worldwide through recorded videos. Followers can watch the preaching sessions online and become a part of the community transcending geographical barriers.

As with every other vertical, religious communities had also switched to the Internet when the pandemic peaked. As a result, an uptick in church attendance was witnessed to compensate for the lack of in-person worship.

 

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How do I start an online video on demand business?

Starting an online video-on-demand business is no longer reserved for the elites. 

With platforms like VPlayed, anyone — even beginners with no coding experience — can create a video-on-demand platform. 

And the best part is having complete control over the user interface, customization, and viewing experience. This means that you can personalize the OTT video platform according to your needs.

Here are some simple steps to create a stunning video on demand website:

Step 1: Build a Good VOD Website

Your video-on-demand service is like a catalyst for your business. So, the first step is to build a good-looking, visually appealing website for your business.

Step 2: Find your niche and target audience

The first item on your to-do list after deciding to launch your video streaming platform is to identify your niche. Of course, this may include comedic performances, popular TV shows, concerts, and documentaries

Step 3: Choose a monetization model

Once you’ve finalized your niche and target audience, the next step is setting quantifiable goals. 

Choosing suitable monetization models like SVOD, TVOD & AVOD would help measure any streamed content’s success. 

Some of the common monetization models

a. Advertisements (AVOD)

Ads significantly garner your revenue scales, especially for content-based businesses.
Here primary factors when you are starting to stream them; it is an all-time winner that supports your sustainability since its demand in the market is in volumes.

b. Subscriptions (SVOD)

When you look for how to start a video streaming website, it becomes essential to gauge if your content can permit subscriptions.

Seeking exclusive rights for it and having in-house shows can ensure a sustainable model. It also proves as a unique differentiator from the rest.  

c. Pay-Per-View (TVOD)

If you have content to sell videos online piecemeal, pay-per-view is your best choice. This model is primarily used when every video is priced individually.

While building an on-demand library, if you have yet to have a vast one, this can be your go-getter.

Why Does Your Business Need A VOD Platform?

VOD has multiple benefits to offer to both the creators and the consumers. Here are seven solid reasons why you should build your own video-on-demand website.

1. Convenience:

VOD services allow users to watch the content as and when they like. There are no restrictions on time and place, and one can watch a particular content multiple times.

Additionally, users can stream content from any geographical location, which is not the case with a traditional TV. With VOD, audiences also have the freedom to cancel their subscription at any time.

2. Better customer reach and accessibility:

Having a VOD website allows you to cater to a large audience base. One can access your website from any device with a single click.
Furthermore, creating content that resonates with your viewers can increase your audience base manifold.

3. Build online communities

VOD business is more than just video viewing. It is about building a community around your ideas and passions with people who share similar interests.

By delivering value and original content in their particular industry, one can succeed in VOD streaming.

Take the example of Netflix, whose users share a common sense of belongingness around its video content, making it a viewer giant.

4. Source of passive income:

There are various monetization options in a video-on-demand business.

For instance, with SVOD (subscription video on demand), you get recurring revenue month-on-month from your subscribers.

This ensures a steady flow of income and allows you to focus more on creation without worrying about money.

5. Creative freedom and control over monetization:

Building your own video-on-demand website gives you complete control over your content.

You get to choose what, when, and how you want to share your ideas with the world. There are no advertisers’ guidelines to be followed that may hamper your creativity.

6. Multiple revenue streams:

Video streaming services have multiple monetization methods to monetize video content and earn revenue from the content. You can choose among the most popular ones, including AVOD(ad-based), SVOD (subscription-based), and TVOD (transactional or pay-per-view).

In addition, there are also options to use hybrid models like SVOD & TVOD or SVOD & AVOD to maximize profits depending on the business.

7. Ad-Free Entertainment:

There is no denying that our consumers have never welcomed advertisements. As a result, most are ready to pay a premium VOD price to stream ad-free content.

In traditional TV, viewers can only watch the ads as the service uses AVOD monetization. But VOD provides them without ads entertainment after a video subscription platform that attracts many consumers.

How to choose video on demand Business?

For building your own VOD business, you require the services of VOD software.

Today, the market is saturated with eclectic VOD businesses. Still, choosing the right one that fits your business needs and goes well with your content strategies is essential.

An effective VOD business must have the latest cutting-edge technologies that are future-proof.

An excellent IT infrastructure coupled with a robust distribution network will help you remain relevant and scale up in the future.

If you want to make money from your VOD website, pay attention to the monetization models and payment gateway support. 

Lastly, the service should be within your budget, as content creation and business require a hefty upfront investment.

How VPlayed Helps Business to Build Successful VOD Website

VPlayed is an end-to-end video on demand website builder that lets you digitize the video experience for global audiences.

• VPlayed is an end-to-end video-on-demand website builder that lets you digitize the video experience for global audiences.
• Design a business model by finding the ideal niche on which you can create quality content.
• The next step is to find a business service like VPlayed and pay at a one-time cost which you will ultimately own.
• Customize the added features in your kitty to suit your business based on what customers expect.
• Also, customize the layout to resonate with your brand image.
• Ensure that the videos are compatible to stream on multiple and remote devices.
• Find out the best video monetization platform that you can work with.
• Pay attention to the video content management system and the security of the system with the necessary tools.
• Add features such as analytics to monitor your videos’ engagement rate and other progress to analyze them regularly and make necessary changes then and there.
• Set up the on-cloud hosting and build an available VOD app after ensuring the security features.

Here are the top 6 features that make VPlayed a robust VOD website

1.100% Customizable:

VPlayed offers the best white-label OTT platform capabilities to host videos with your branding.

In addition, you can customize the website to match your brand image without creating anything from scratch.

2.10+ Flexible Monetization Models:

There are three basic monetization models – SVOD, AVOD, and TVOD on VPlayed.

In addition, the platform also offers catch-up TV, coupons & promotions, third-party ad integrations, and server-side ad insertion.

3. On Cloud/ On-Premises:

VPlayed provides both on-cloud and on-premise hosting. You can select one that matches your use cases and requirements to build the best online video hosting platforms.

4. Multi-DRM Solution:

VPlayed has multi-DRM security that manages your licensed content. In addition, it protects your content against piracy and unauthorized access..

5. Built-in Marketing Integrations:

To enhance user engagement and lead conversions, VPlayed provides multiple tools to create compelling CTAs, lead capture forms, and video email marketing.

6. 4K HLS Streaming With HTML5 Player:

VPlayed offers a state-of-the-art with best HTML5 video player that ensures a high-quality buffer-free viewing experience.
In addition, it comes with adaptive bitrate streaming and multi-screen support that adds to the convenience of viewers.

Conclusion

Video on demand is a powerful asset for businesses. However, knowing where and how to start can be confusing.

As mentioned, an advanced white-label VOD platform like VPlayed can help you build an impactful website to take your content to a global audience.

With adequate planning and thoughtful investments, you can achieve tremendous success.

Frequently Asked Questions (FAQ):

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