OTT platforms have seen a constant increase in viewers, which has reached an all-time high now. there are projections that it will exceed 4.9 billion users in 2025. Platforms are experiencing a remarkable rise in their revenues. Most platforms follow similar monetization models, with video-on-demand being the most popular. 

Recent trends indicate that the pay-per-view model is also gaining popularity because of its flexibility and easy access. In this blog, we explore both the models, their advantages, and the differences. This will help streaming platforms understand the working of the models and how they can use it to increase their revenues. 

What is Video-on-Demand (VOD) and how does it work?

Video-on-Demand allows the audience to select a video from the content library on the online streaming platform at any time. They can choose to pause and play later, repeat the selection, and rewind. This they do by paying a subscription fee either monthly or annually. 

This is the most common and popular method used on streaming networks, which benefits both the streamers and users.

How does VOD work? 

Content streamers store video content in various categories and genres online on a server. This is available for viewers to watch upon paying a subscription fee. Any person with a good and stable internet connection can watch the videos from any device, laptop, tablet, smartphone, or gaming console.

Every time the user wants to watch, they can log in to their account and continue from where they left off. The platform offers videos at high quality without buffering for a seamless experience. Platforms use adaptive bitrate streaming to adjust streaming quality according to the user’s internet speed. 

Benefits of VOD

1. Available anytime

Once the user pays the subscription fee, the content is available 24/7. They can watch the same video repeatedly, or pause to watch it later. The rewind and fast-forward options are also available. The user need not follow any fixed schedule to watch the content.

Also, users can watch the content on the go from any location. There is no fear of missing any episode, as everything is stored in the content library. Content can also be downloaded and streamed when the user is offline. This is one of the greatest conveniences that entertainment platforms can offer. 

2. Access from any device

VOD content is available for access across many devices such as laptops, desktops, TVs, tablets, smartphones, and gaming consoles. Video streaming is delivered seamlessly on all devices.

This creates convenience for the audience, as they can choose any device to watch the videos. 

3. Personalized recommendations

VOD creates an engaging experience for the user by offering personalized content recommendations. With the help of algorithms, platforms can analyze user behavior and understand their likes. This helps in making suggestions, with which the user can create a playlist and access it whenever online.

4. Flexible pricing

Users have the option to choose from monthly or annual subscription plans. They can withdraw whenever they want and have no fixed obligation. A wide variety of free content is also available to watch.

This is a great option for budget-conscious users, and serves as a great opportunity for platforms to bring in more of them on board. 

What is Pay-per-view (PPV) and how does it work?

Pay-per-view, as the name suggests, involves payment per view of a particular content. Viewers can access content by paying a one-time fee. Most often, PPV is for a specific live event. The content is available only for a fixed period, after which the user loses access to it.

Most platforms convert PPV content into on-demand content after the event. This is the recorded version and can be watched with the regular subscription fee.

But the PPV price is for the early access and exclusivity to the content, which platforms can capitalize on to increase their revenues.

How does PPV work?

Whenever there is a live event or exclusive content proposed to be streamed, the audience has the option to pay a one-time fee to reserve access to it. This is separate from the subscription plan that the audience already has. 

This concept is time-bound, and the audience should access the content before the content is removed.

Benefits of PPV

1. Exclusive access

Viewers have exclusive access to live events with pay-per-view. They can watch the content before it is available for subscribers. They can watch live events as they happen without any latency. For example, they can view their favorite player or performer in a live sports match or a music concert from the comfort of their homes.

2. No subscription

There is no compulsion to subscribe to any payment plans. Watch only what you want to without any commitment. There is no intrusion in the form of advertisements, as in free or subscription content. This is highly suitable for users with budget limitations.

3. More ROI for the platform

There is an increase in revenue for streaming platforms, as more users are willing to pay for exclusive access. This gives even better earnings than the regular subscription plans.

By offering the most popular shows and matches live seamlessly, they attract a huge audience. 

4. No wait, as in VOD

Viewers have instant access to live content upon paying the fee. In VOD, viewers can watch only the recorded version of the event. It is more of a privilege for the PPV audience.

5. Accurate information on user preferences

VOD consumers have a large content library to access, including content that may not be of interest to them. But with PPV, platforms can ascertain audience preferences accurately and recommend content accordingly. 

Video-on-demand Vs Pay-per-view

Conclusion

Video-on-demand and Pay-per-view are great monetization models for your streaming platform. Both have different target audiences and immense revenue potential. While subscriptions can bring in consistent revenue to the platform, one-time fees can give a sudden increase. 

Both, with their advantages, are essential monetization models for platforms to improve their earning potential. With Enveu’s streaming solutions, you can reach a wider audience and create better engagement.

We offer multiple monetization avenues that can be customized as per your needs. Enveu content management system can help in the seamless delivery of content and create a good brand image.

Reach out to know more about our solutions. 

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