People are very much influenced by VOD platforms when it comes to getting entertained. These viewers enjoy the benefits and flexibility that VOD provides. Ever since the world has become more digital, people prefer streaming content over going to theaters and using other means of entertainment.
This means content creators can get more subscribers than ever and utilize different monetization models.
While other revenue models such as SVDO, AVOD, and TVOD are the most heard ones, many creators might not have an idea about PVOD.
Today, we will discuss PVOD, explain it to you, and conclude if opting for PVOD is a good idea.
Let’s get started.
What Is Premium Video on Demand (PVOD)?
PVOD provides early access to premium content. However, viewers need to pay a certain amount to access this content. For example, exclusive content is released on platforms once the movie is up in the theaters and going hot.
Creators should also know that PVOD differs from TVOD. TVOD refers to providing video content on rent for a specific period or a lifetime. It doesn’t have similarities with PVOD as PVOD is all about giving early access.
How Does Premium Video On Demand Work?
To access the PVOD content, viewers need to pay separately for it. Streaming platforms might charge a separate fee other than their existing subscription. With the PVOD model, movies are released simultaneously on streaming platforms and theaters. Back in the days, theater releases used to follow a 90 days rule before releasing the movies via other sources such as DVD or Blu-Ray.
This also means that in the present time, the exclusivity of theatrical release has been shortened to 45 days and even 17 days. Once this period ends, a film is released on a VOD platform.
The PVOD model works best with films for which people eagerly wait or films that have the potential to be a blockbuster.
The most successful example of a PVOD release was “Disney’s Mulan,” released on September 4th, 2020. The film was released using the PVOD revenue model in countries where users could use Disney+. The film was a huge hit, and despite its huge price tag of $200 million, the film was able to earn profits.
What Are The Key Benefits Of Premium Video on Demand Streaming?
● Global Reach
PVOD inspires new audiences to join the league and get access to early exclusive content. This is an inspiring way of streaming for those who do not have access to theaters or don’t want to approach theaters.
● Set Your Pricing
PVOD allows content creators to set the pricing they want. This also gives them a chance to earn more than other revenue models, hence collecting higher revenue.
● In-depth Analytics
It is also important for a creator to know their audience, understand their behavior, and uncover such aspects for future marketing strategy.
All of this can be known with analytics, where the creators get to know all the demographics of their viewers. Video streaming platforms that provide Premium Video on Demand also happen to provide analytics.
● Enhances User Experience
PVOD provides users’ favorite content, contributing to an enhanced user experience. Viewers can watch their most awaited exclusive content whenever they want from their convenient place with features like subtitles, alternate audio tracks, and more.
● Revenue Opportunities
PVOD serves as an additional revenue model which creators can utilize along with other revenue models such as SVOD and TVOD. All of this enhances the earning potential of creators at the end of the day.
PVOD vs. SVOD vs. TVOD
Compared to PVOD, which is about giving early access to exclusive content, SVOD provides streaming access using subscriptions.
In the SVOD revenue model, the viewers pay the subscription fee monthly or yearly and get to stream the entire library of content till that duration. Some platforms that allow SVOD revenue models are GUDSHO, Netflix, HBO Max, Disney+, etc.
Pay Per View or TVOD revenue model provides content on rental; this is also known as the pay-per-view model. User pays a certain amount to stream a particular video, movie, or web series and gets to stream it for a certain amount of time.
Advantages Of Premium Video On Demand
● Good For Buzz
PVOD launches new content for early access, which spreads awareness about the new release and motivates viewers. When more and more people get to know about early access, they want to pay for it and stream before everyone else.
● Invites New Subscribers
With PVOD, you can bring more subscribers to your platform. This is because early access to a movie or such content compels viewers to watch it without waiting for public release. With PVOD, your chances of gaining new subscribers increase.
● Increases Revenue
Since you can utilize multiple monetization options, you can bring the charm of SVOD, TVOD, and PVOD together and boost your overall earnings. Most platforms bring more than one revenue stream; on such platforms, it’s possible to use these streams and generate money from each one.
● Lawsuit Chances
PVOD releases might fall susceptible to legalities sometimes. One example includes Black Widow, which was released on Disney+ in 2021. The film generated $60 million on the OTT, other than earning $80 million at the U.S. box office and $78 million internationally.
The lead star, Scarlett Johansson, then filed a lawsuit against the OTT release saying that it was not a part of her contract since the OTT’s profit-sharing was not included in the agreement.
● Bad For Theaters
Since PVOD avails the movies on streaming platforms, it removes the need for viewers to go to theaters every time. The same might result in decreased earnings for theaters, and people might leave going to theaters.
How to Get Started With PVOD?
Following a few steps, you can start your PVOD journey as a content creator.
● Preparing your content
To utilize PVOD, creators should be able to collect exclusive content and avail them of early access. To get the content, you might need to contact a few distributors who can get you different films to release on your channel.
● Selecting the right VOD Platform
Once you know your sources to get the exclusive content or movies for early access, you need to search for platforms that provide a PVOD revenue model. Such a platform should suit your budget, the requirements for features, and such factors.
● Setting up Monetization
When the content and platform are ready, it’s time to set up the monetization method. Choose the content you will provide for early access and put it in the PVOD monetization category.
● Marketing & Promotion
Once you have released the content on the platform, it’s time to market your channel and promote your content. The more you advertise, the more people will get to know about it and build interest.
This would let people know about the availability of the movie or content and will inspire them to make the purchase.
● Scaling & Expanding
As you become more experienced in releasing PVOD content, you will also become better at networking and having the contacts of distributors. Gradually, you can bring a large array of PVOD content, expand your business, and earn more.
PVOD, or Premium video-on-demand revenue model, lets creators earn by giving viewers early access to exclusive content. The opportunity to watch trending hot content before others is what inspires viewers to sign up for PVOD.
This revenue model is also popular among viewers who want to watch a movie but do not opt for theaters. So if you can avail early access to exclusive content or movies, then PVOD is definitely a must-try revenue model.
In the coming months and years, it will only grow; hence, it would be beneficial for creators to consider PVOD along with other monetization options and maximize earnings.