Transactional video on demand or TVOD has been in demand, it was first introduced as a pay-per-view model that allows individuals to buy or rent video content. Since there are multiple video-on-demand (VOD) platforms available, the chances of generating revenue are equally diverse. The number of these VOD platforms is increasing dramatically with their increasing popularity. TVOD platforms are a great source of revenue generation and there are other monetization platforms commonly known as AVOD and SVOD. 

Moreover, certain platforms have a steady revenue flow which is generated through advertisements, monthly subscriptions, or the PPV model. However, some of the platforms charge a monthly or annual subscription fee, like Amazon Prime and Netflix. In contrast, some monetize through instream ADs multiple times. In this blog, we will take you through how TVOD services can refine your strategies for upscaling revenue in the video streaming industry.

What is Transactional Video on Demand?

TVOD is a business model that involves video monetization techniques by charging individuals a one-time cost for a particular set number of views. There are multiple platforms working on this model to generate revenue. Whereas, TVOD streaming is directly opposed to other streaming models like SVOD which allows the subscriber to own the full rights of the platform or video content. TVOD is a transactional monetization model where individuals only rent or purchase the content they want to watch, rather than paying a fee for the entire library. 

The pricing options are becoming more personalized and provide enhanced flexibility to the individuals access and payment for the content. More and more industries are adopting the TVOD model to meet their monetization needs. Moreover, virtual reality and live streaming of events also play a crucial role in boosting the popularity of TVOD streaming

Advantages of TVOD Streaming Over Other Models

TVOD services offer multiple unique features that subscription and AD-based models don’t offer. This streaming model offers huge financial benefits for many businesses to generate revenue. There are other advantages of TVOD over other streaming models.

Advantages of TVOD Streaming

Cost Estimation

This streaming model is often considered the most accurate model for the estimation of operational costs. This helps reduce unexpected expenses and the cost is calculated with the cost of server, CDN, and the amount spent on acquiring a new audience. It is an obvious advantage of transactional video on demand that allows creators or organizers to place a paywall around the content.

Revenue Distribution

The distribution of revenue for TVOD streaming content is easy to track because the user will pay a specific amount for the content, and it eliminates confusion. Although there are various other monetization techniques, these models allow you to make the most out of your content.

Opportunities for New Content

In the video industry, new releases are usually higher in demand, and they can expect quick and scalable revenue growth. This streaming model can hike the revenue and make the most profit even if you hybridize it with other top video streaming platforms.

Scalability & Flexibility

TVOD is the best model that can scale small businesses and events by providing greater flexibility in pricing. These platforms provide complete control over the distribution network with zero risks of piracy and copyright infringement.

One Time Paid Events

TVOD services are an excellent opportunity for conducting one-time payments for events like concerts, music festivals, sporting events, etc. Furthermore, you can lock your premium content behind the paywall while providing the audience with free material is a great strategy that can generate long-term profits.

Different Types of TVOD Monetization Models

Transactional video on demand is suitable for compelling and differentiated content. This is because video content is always in demand and users are comfortable with the idea of paying a premium fee for uniquely offered content. The audience always prefers content that is suitable for them, and for that these services cater to them in comparative types:

Pay-Per-View (PPV)

PPV is a type of TVOD streaming monetization model that allows users to access shows and events for a one-time payment fee. Pay per view model is available on different platforms and is primarily used to monetize content like concerts, games, conferences, webinars, and other live-streaming events.

Electronic Sell-Through (EST)

Electronic sell-through is another type of streaming service where viewers are charged a one-time fee for unlimited streaming of certain video content. Users can easily access the content in their comfort, rather than paying for a subscription or rental model. EST is mostly used to provide easy access to movies, live streams, TV shows, etc. 

Download to Rent (DTR)

DTR or download to rent is an easy monetization model where video content is easily accessible for a fixed amount and period of time. It is not similar to traditional movie rental models, where the audience pays for a particular movie for a short duration and returns after the time period is over.

Download to Rent (DTR)

The Difference Between TVOD and Other Monetization Models

SVOD, AVOD, and PVOD are three main models that are being leveraged by streamers, broadcasters, and content creators in distinctive manners other than TVOD. All are equally popular and are excellent for generating good revenue. Understandably, the requirements of your audience help in determining which can work best for your streaming business. 

SVOD (Subscription Video on Demand)

It is a large library of video content that is created for a big set of targeted audiences. Subscription video on demand gives audience access for longer period helps in making consistent and boosted revenue. 

PVOD (Premium Video on Demand)

Many studios are analyzing another suitable alternative to TVOD like premium video on demand which has become popular. This model of streaming video consist of movies, events, and shows that are released and would be delivered within the initial weeks after they have arrived at higher prices.

AVOD (Advertising-Based on Demand Video)

It is a mere fact that the audience is shifting away from advertising-based video-on-demand streaming. Because it increases the time of the videos and can affect the attendee experience. This is making the streamers or creators rely on more seamless alternatives to VOD streaming. 

Some Use Cases of TVOD Services

TVOD services are majorly used in entertainment and educational industries to monetize premium and exclusive content, new releases, live streams, and more. Here is a brief look into the use cases of this streaming service.

Some Use Cases of TVOD Services

TVOD for Learning

Most of the educational and e-learning platforms leverage transactional video on demand to enable creators to sell their courses. They are one of the major users of this video streaming because it allows them to monetize their content seamlessly. Students can pay a one-time fee to attend live classes or lectures, specific lessons, and more. Through TVOD they can also offer free trials to let students decide whether they want to buy the course or not. 

TVOD for the Entertainment Industry

Other major consumers of TVOD services are streaming platforms, broadcasting networks,  studios, and live streaming platforms to monetize exclusive content or PPV. This is an excellent way to generate revenue and is used to host new movies, live streams, and other premium content. Through TVOD you get excellent opportunities to monetize your older content that is unavailable anywhere. Concerts, sports events, webinars, conferences, and virtual events are some more examples that use this streaming format. 

Final Thoughts

TVOD is the best way to monetize through video content, and it is being used by many platforms and industries. The video content industry is very vast, and it can easily escalate the revenue generation. Transactional video on demand can provide flexibility, scalability, opportunities for new content, and revenue distribution. There are other models that are similar and can be used for video streaming content like SVOD, PVOD, and AVOD.