The VOD business is booming, and the numbers are staggering.
According to reports, around 82% of internet traffic is video, and people consume more than 16 hours of video content per week. As a result, the demand for VOD services is at an all-time high.
In 2020, the video on demand (VOD) industry saw a 12% increase in its user base and a 15% rise in revenue. As per Statista, the VOD segment is projected to reach a market value of around $126,548 million by 2025.
Many businesses are leveraging this shift by launching their video content monetizing with the best VOD platforms.
However, with continuous changes in trends, it is clear that understanding consumer preferences is the key to success in the streaming business.
This article discusses the impact, major industries, and benefits of VOD business, in addition to how to start your own VOD website.
Video-On-Demand – Market Landscape and Trends
The viewing habits of the masses are changing fast.
Today, they prefer the convenience of video-on-demand over traditional television.
In addition, the freedom to stream content at any time from anywhere has taken VOD to every nuke and corner of the world.
In a recent survey, 80% of global respondents said they like watching movies on VOD websites, followed by 50% who consume on-demand TV programs.
VOD websites are great for delivering viewers the content of their choice and retaining them long-term. VOD websites and apps are also easy to monetize, leading to business growth in revenue.
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.
🔹 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.
🔹 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.
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.
VOD website help 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.
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.
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 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 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 business, 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.
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 video monetization methods to 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 CONTUS VPlayed Helps Business to Build Successful VOD Website
CONTUS VPlayed is an end-to-end video on demand website builder that lets you digitize the video experience for global audiences.
- CONTUS 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 CONTUS 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 platforms 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. 9+ 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 HTML5 video player with HLS streaming 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.
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.
If You Already Have An Idea About Starting A Video On Demand Business, Feel Free To Schedule A Free Demo. Let’s Get Your VOD App Up and Running!
Frequently Asked Questions (FAQ):
1. How To Create A Video On Demand Website For Business?
You can now build customized streaming business specially for various genres in video on demand by firstly planning content with the target audience. Then content production & uploading on the website comes into the category. When it’s all set to stream you need to embed your video player & finally promote your VOD business.
2. Why VOD Business Important In 2023?
With 2021 year nearing to a closure many business owners are flipping through the page to start video on demand service, looking forward to new avenues. On-demand video business models help to convert their vision into incredible success via its popularity, high engagement, versatile ways to target, & ability to share & monetize.
3. Which Monetization Model Is The Best For VOD Business?
Streaming with an effective business revenue model largely depends on genre of content that’s added to a video on demand site created on your own. SVOD platform is the most common type chosen by media owners to reap constant profits. Other than that, selecting a perfect monetization strategy depends on audience’s choices to cater. Some may like to watch a complete pack where TVOD can help, apart from AVOD.
4. How To Secure Your Video On Demand Content?
When you have decided to start an online video streaming business, secure video delivery comes into major play and we all know that security is the lifeblood of professional broadcasting. Some of the key protocols like AES Encryption, HTTPS Delivery, SSL Paywall, Password Protection, etc. will ensure to monitor your content originality.
5. What Is The Most Popular Video On Demand Service?
While looking into establishing yourself as one among the big brands in the industry, typically Netflix can help you to gain best insights as it shares the standard-bearer. Subsequently, Vimeo occupies the place offering vivid video projects through on demand section. Then, definitely Twitch & YouTube TV are your best bets to enjoy people’s games. Not to forget, Amazon Prime & Hulu share an amazing library for standalone video subscriptions.