The rise of video on demand has transformed the way we used to consume and enjoy the content. It was a time when we had to wait for television shows or plan for a theater ticket, now everything was right at our fingertips and right on our smartphones. It all started with the pandemic, when theatres were closed down and people started to spend time on their smartphones, They discovered VOD. The demand for VOD increased significantly and the revenues are already touching $98.7 Billion in the recent year. Looking at this high amount of penetration of users and business opportunities, entrepreneurs are actively targeting to build their own OTT platform. However, AVOD, SVOD, TVOD, and PVOD (Premium video on demand) are some of the options available for them where PVOD stands as an emerging one. In this article, we will explore everything about PVOD streaming.
Table of Contents
- 1 What is PVOD Streaming?
- 2 How Does a Premium Video On Demand Streaming Work?
- 3 The Impact of PVOD Streaming on the Entertainment Industry
- 4 Popular PVOD Streaming Platforms
- 5 Benefits of PVOD Streaming to Businesses
- 6 How PVOD Differs from TVOD and SVOD Monetization Models?
- 7 Premium On Demand Is the Future!
- 8 Major Future Trends in PVOD Streaming
- 9 Conclusion
What is PVOD Streaming?
In general words, premium video on-demand (PVOD) streaming gives access to newly released content prior to the other users of an OTT platform. In return this model of streaming charges a premium fee, which is different from the general subscription fee, in exchange for pre-accessing the unreleased content. Whether it is films or tv shows, premium users can enjoy the content before the average subscription owner does. This streaming method excessively:
- Increases attraction
- Builds hype about the shows and OTT platform
- Convert normal subscribers to premium ones
- Makes Maximum revenue
How Does a Premium Video On Demand Streaming Work?
As a user, if we want to think about the working of PVOD, then we just have to open the streaming application, search for the title of a movie or tv show and start enjoying the content within a few seconds. But, the mechanism is not the same on the steaming platform side. On the other side following steps take place.
- Once a user selects the video, it is uncompressed from the OTT platform servers and is converted to a video format.
- Later it aligns with the suitable streaming format for the PVOD service.
- The selected item then goes through the process of encryption and verifies the premium membership of the user
- When the file is ready, it is decompressed in the video player providing a great experience to the users.
The Impact of PVOD Streaming on the Entertainment Industry
PVOD has become quite popular among consumers in the United States. According to an October 2021 survey, 56% of U.S. customers prefer watching new movies via PVOD rather than in a movie theatre.
Why? Well, the reasons are many!
PVOD users get access to content before SVOD and TVOD users. However, they have to pay a premium fee to become premium users of an OTT platform. For example, Disney offered a Doctor Strange movie for $19.99 which was highlighted in the PVOD section. After some time, the prices came back to normal but Disney had made the maximum amount of advanced revenues from the premium user base.
Users getting the premium subscription are the elite users of a streaming platform delivering maximum revenue to the company. As soon as a movie is released it is accessible to elite customers to fulfil their premium subscription requirements which is not the case in the other two streaming services.
Popular PVOD Streaming Platforms
PVOD monetization models are implemented on popular platforms:
- HBO Max
- Apple TV+
Benefits of PVOD Streaming to Businesses
A business gets vast benefits with the Video on-demand platforms. from generating buzz to boosted revenue and more. Here are some of the highlighted benefits of PVOD streaming to businesses.
Great User Acquisition Channel
PVOD releases give audiences early access to stream premium large-budget content, including titles that might normally feature exclusively in theatres for weeks or months before appearing on streaming services. This results in a higher user acquisition rate. HBO Max, for instance, has reported a significant increase in new customers joining their subscription service to access their PVOD products.
What can be better than attracting the consumer base in advance? The same happens in the PVOD platforms where businesses get subscribers even before a show or film is released to the other users of the OTT platform. As compared to other streaming techniques like SVOD and TVOD, PVOD works best.
OTT platform lovers love the platforms that offer PVOD services. Why? Because they want to access the content as fast as they can. When you apply PVOD on your OTT platform, you get enhanced branding among the users. Even your platform is promoted by the creators of the show or film.
Producers rely on media distribution to earn the investments they have made in producing the show or movie. With PVOD platforms they ensure media distribution in advance. They can also accurately predict the gross earnings from media distributions.
PVOD streaming providers generally offer more data and analytics on audience behaviour, which helps in creating more effective content and marketing strategies.
How PVOD Differs from TVOD and SVOD Monetization Models?
Other than PVOD as a streaming service, it is also the best form of monetization technique besides subscription video-on-demand (SVOD) and transactional video-on-demand (TVOD). Since it lets users access premium content at the earliest, it leverages business with the maximum revenue possible for media distribution.
PVOD and TVOD
PVOD is considered much similar to TVOD in which users have access on the basis of a pay-per-view model. The prime difference here is that PVOD charges a higher price and offers earlier access.
PVOD and SVOD
With SVOD, users subscribe to a video content service and get access to all the titles which the platform offers. In order to generate more revenue, providers can now also add on a PVOD model for highly demanded films. These two are not exclusive model as they can be merged within the SVOD offering.
Premium On Demand Is the Future!
PVOD streaming is the future for sure. Businesses who want to build a brand image do offer this feature and subscription plan on their platforms. It also ensures a premium user experience and has become a great revenue-generating model for OTT platforms.
Users have continued to purchase PVOD videos even after theatres reopened, with a July 2022 survey suggesting that 14% of all adults made a PVOD transaction that month. In the near future, nearly half of the users may also subscribe to the PVOD plans offered by streaming companies.
Major Future Trends in PVOD Streaming
- Opportunity to monetize older content
PVOD also represents opportunities for streaming platforms to continue monetizing older content that may not be as popular as newer releases.
- Potential to create additional revenue
With PVOD’s advantages, broadcasters can leverage additional revenue streams by streaming content on platforms through partnerships with studios or even content creators to release content exclusively on their platform.
- Dual release strategy
With an aim to reduce marketing expenses and get maximum benefits from your content, PVOD acts as a contributing factor. The content production house can release the films in theatres as well as on PVOD platforms to grab the attention of the audience easily.
If you want to create some buzz on your streaming platform, PVOD is the best choice to use. Especially for new releases, it acts as a hype creator where users are provoked to buy the premium subscription to pre-access a show or movie. Both OTT streaming platform owners and the creators of the film stay in a win-win situation with a great head start. Top OTT streaming platforms as mentioned above are marking premium on demand streaming as a great business opportunity.
If you are planning to embed a PVOD streaming feature on your existing OTT platform, or want to build an OTT streaming platform, we are ready to assist you! Let’s discuss more here.