The Benefits and Drawbacks of Vod Streaming – Things You Should Know!

Do You Know?

Until recently, the online video streaming industry has been a thriving market, and its value is still increasing. 

  • According to Wyzowl, people now watch approximately 16 hours of video content per week, which is a significant increase from just two years ago. As millions of people are confined to their homes, there is an all-time high demand for VOD streaming services, and the industry is stronger than ever.
  • Statista predicts that the VOD industry will grow by 12% in terms of user base and 15% in terms of annual revenue.
  • The industry will be worth more than $95 million by 2025, according to the same data.

The above statistics make it clear that pursuing VOD solution is a great opportunity. Many marketers even believe that video is the future of content, which is why so many businesses have started to build VOD-based business models to grow their brands.

You’re most likely one of the millions of people who watch the VOD streaming App daily. It’s one of the best approach for watching videos and can be used for anything from entertainment to online learning. However, if you’re curious about how VOD online streaming works and why you should care as a content creator, we can help.

In this blog, we’ll cover everything you need to know about VOD streaming, including what it is, why it matters, and the benefits and drawbacks of using it in your business.

So, What Exactly Is Video on Demand Streaming?

VOD (video-on-demand) refers to a content distribution platform that provides content via subscriptions, pay-per-view, and rentals. It allows viewers to watch the content they want anywhere, anytime. Some businesses that offer free video on demand access generally do so for their top-of-the-funnel content. In either case, you have complete control over how you distribute and use your VOD content.

Netflix and Hulu, two prominent examples of VOD streaming platforms, are currently the dominant giants in the VOD market. However, as time passes, an increasing number of businesses are integrating video on-demand into their marketing strategies.

What Are the Different Types of VOD Business Models?

Choosing the best video on demand monetization model is a critical step in monetizing your video content. Here’s how to decide between SVOD, TVOD, and other VOD types:

  • Subscription Video-on-Demand (SVOD)

Several online video streaming companies use this as their primary revenue model today. Consider Netflix or Hulu Plus, which charge a monthly subscription fee and provide users with unlimited access to the platform’s video content. Users who have paid for their subscriptions can surf and watch their favorite content whenever and wherever they want. They can also pause and play, fast forward, rewind, stop, and record the content.

Subscription models are ideal for platforms that offer a wide range of entertainment video content, such as Pay TV programming, movies, drama series, and other series, and want to keep their audience engaged over time by charging a minimal subscription fee.

  • Transactional Video-on-Demand (TVOD)

Remember when we used to go to physical video rental stores to buy/rent movies? The transactional model functions exactly like those rental stores, except that we buy/rent movies online. It’s similar to a transaction in which viewers pay for each piece of content they purchase from your online store. Buying allows them to own that specific piece of content and keep it on your platform or on their devices. Renting, however, allows them to use a piece of content for a set period.

  • Advertising Video-on-Demand (AVOD)

Advertising is another common method of monetizing streaming videos, in which you make your content available for free viewing but insert advertisements into it, earning revenue from the advertisers. Here, instead of credit cards, your viewers pay with their eyes (by watching ads). Ads are powerful, and advertisers will pay a lot to have their ads streamed (streaming video-on-demand) on your on-demand platform. 

The Benefits and Drawbacks of VOD Streaming

Some of the potential benefits of VOD Streaming services are as follows:

  • More Convenient

Due to the convenience, VOD streaming platforms such as Netflix, Disney +, HBO Now, and others are more popular than traditional TV services. People can watch videos whenever they want with the best video on demand platforms available.

  • Global Audience Reach

When you release your content on VOD streaming platforms, you are not restricted by geographical boundaries. Anyone with an internet connection can access your content. As a result, video on demand streaming can help your content reach a global audience.

  • Cost-Effective

VOD streaming services are also very affordable and simple to access. A VOD platform can be quickly set up without spending money on expensive infrastructure or equipment. Furthermore, viewers can easily access your content from anywhere using their devices. It makes video on demand technology very attractive to content creators and distributors.

  • Huge Collection of Content

Another significant advantage of video on demand software is its large content libraries. Netflix and Amazon Prime provide users with a large collection of movies and television shows. This is in contrast to traditional television networks, which generally offer a limited content selection. Therefore, VOD streaming might assist you in expanding the audience for your content.

  • No wasting time on downloading

Thanks to VOD streaming platforms, people can now enjoy their favorite shows instantly without having to wait for them to download. All you need to view any show is a fast internet connection.

  • Compatible with All Devices

Attendees can watch and enjoy the Video-on-Demand streaming from wherever they are. It will benefit the participants because they will be able to watch various videos on Smart TVs, tablets, mobile phones, laptops, and PCs from anywhere.

  • There Are No Commercials

One of the most troubling aspects of traditional television is commercials. VOD streaming, on the other hand, allows viewers to watch their content without having to sit through commercials. This is a significant benefit for users because it allows them to watch their content uninterrupted.

With this, let’s move on to the drawbacks of VOD Streaming services:

The Drawbacks of VOD Streaming Platforms

  • Internet Connectivity

VOD generally requires an uninterrupted internet connection. If you want to enjoy the HD experience, you should have a minimum internet connection speed of 2MBPS; otherwise, buffering problems would occur.

  • Only Online

Streaming video is only possible when an Internet connection is available. If the viewer’s Internet connection goes down during playback or if they need to watch your content offline, they’re out of luck.


Thus, these are the various benefits and drawbacks of video-on-demand streaming services. Hope, now you have got the information you were looking for with a better understanding.

No matter what you choose, understanding your audience’s needs is a good place to start for future engagement. Your content must always be relevant to the niche and exciting to your audience.

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