What is VOD

What is Video on Demand (VOD) & How Does it Work?

VOD has become the number one source of entertainment. It is predicted to capture 3.44bn users by 2027 and the revenue has been forecasted to increase by more than 9%, resulting in US$230.90bn by 2027!

The world loves VOD (Video on Demand) as it offers the most convenience, benefits, and pocket-friendliness when streaming content limitlessly.

So as a creator, it is time that you join the league and start providing your streaming services. There are VOD platforms that allow content creators to upload their content online and earn from it.

Let’s learn more about VOD and how their monetization models work, so you can use this opportunity better and start creating with ease.

What Is VOD?

VOD or Video on demand provides the ability to stream video content online. Viewers can stream any available content with just a click. Content on VOD platforms is delivered via the Internet and not the regular cable.

Hence VOD enables viewers to stream the content anywhere and whenever they want. Platforms like Netflix and YouTube are the greatest examples of VODs where viewers can stream their favorite web series, movies, videos, exclusive videos, and other content. 

A VOD also allows creators to upload video content, and the same content gets broadcasted to the viewers. Some VOD platforms are free of cost, whereas others need the viewers to pay a fixed price weekly, monthly, or yearly.

Some VODs need viewers to watch some advertisements during streaming, and such platforms provide free-of-cost streaming.

How Does Video On Demand (VOD) Work?

VOD provides a digital space to creators and lets them host videos. Creators who have recorded the videos can upload them on a VOD platform and avail them for viewers.

Content creators can choose the revenue models available on the VOD platform, such as SVOD, TVOD, AVOD, etc.

Once the revenue model is selected, creators can earn money from their videos when their audience pays the subscription fee, donation, or rents specific video content.

After paying the amount, viewers can stream the content anytime they want and through various devices as per the pricing plan. VOD platforms also bring playback options such as play/pause, speed, and others to control various things on the screen.

Benefits of Video-on-Demand (VOD) For Your Business

A VOD platform can largely benefit a business in many ways. It lets businesses share and communicate their knowledge with the audience and clients. Let’s uncover some most common benefits a business can have by opting for VOD.

1. It Sets You As An Authority

A VOD platform allows you to create in the field of your expertise. It hence sets you as an authority in your segment, and you can build trust with your audience or potential clients through it.

Since the world is more inclined toward visuals, videos make a message more attractive than any other means of communication. Hence, providing a visual showcase of your products to your clients tends to be more catchy and successful than otherwise.

Not just a product showcase, but you can create webinars, your story videos, how-tos, and other such things by using a VOD hosting platform.

2. Inspires The Audience To Take Action

Consumers prefer video over traditional forms of communication. This is why VOD platforms have been growing by leaps and bounds and why viewers watch videos whenever they have a query or need entertainment.

Choosing a VOD platform makes it more effective and easier to convey your message and make your audience aware of your brand. This applies to both: individuals and businesses.

The same also increases your chance of getting your products or services bought!

3. Brings More Opportunities To Earn

VOD platforms bring you more opportunities to make money. As a business, VOD brings you a newer audience range that is impossible otherwise. The platforms offer monetization options where you can make videos related to your business, stream them, and earn revenue.

Businesses can choose from SVOD, TVOD, AVOD, and donations; they can also choose multiple revenue options and earn from hybrid monetization.

4. Helps Earning The Fan Loyalty

Since videos hold the highest engagement rate, they facilitate a larger audience group than other communication formats. When you, as a brand, keep communicating regularly, it helps you earn your audience’s loyalty and makes them your regular visitors.

Hence VOD platforms facilitate a sense of community where your viewers appreciate your effort, trust your feedback, and keep the engagement high. 

This, in turn, also helps you advertise your brand because your audience also helps with word of mouth, which brings you opportunities to grab even more subscribers.

Are You Ready To Monetize Video on Demand Content With Top Scalable Features

Types Of VOD Models

VOD models are the monetization models that let you earn from your video content. Choosing the right VOD model is important to get the maximum earning potential from your videos.

Let’s see the most common VOD models here

1. SVOD Or Subscription VOD

SVOD, or Subscription video-on-demand, lets creators earn when their audience pays the subscription fee to their channel. These subscriptions can be weekly, monthly, or yearly, and a viewer can pay for the duration as per their budget.

This kind of revenue model works when you upload premium content where the audience doesn’t want to struggle with watching the ads; instead, they want a clean interface.

Maximum streaming users prefer to pay for the subscription instead of browsing through free video hosting platforms where they face the interference of ads.

SVOD also allows creators to earn more than other revenue models; with such a model, you don’t have to create new content frequently. Instead, you just need to advertise your channel well and gain new subscribers; you earn money every time you get a new subscriber.

2. TVOD Or Transactional VOD

TVOD, or Pay per view (PPV), is made for viewers who want to access one particular content instead of streaming the whole range. Such a revenue model can be used for a specific TV show, a sports match, a live event, and other exclusive video stuff.

With TVOD, you can make more money as the price for one content is higher than a subscription. However, since TVOD attracts only viewers who are interested in just one particular content, it doesn’t promise you a regular audience.

This also means that with TVOD, you can’t predict a steady flow of income. However, it is advised to utilize the power of SVOD and TVOD together to generate even more revenue. As a creator, you can sign up on a streaming platform that provides both monetization options.

3. AVOD Or Advertising VOD

AVOD, or Advertising video-on-demand, allows viewers to stream the content for free, and they don’t have to pay a penny. Such a revenue option puts advertisements between the video and makes the viewers watch them.

The creators earn money via AVOD when their audience streams these advertisements. Many platforms allow streamers to customize the ad placement and choose their brands.

This revenue model works best for viewers who do not wish to pay for streaming or when you provide more generic content instead of anything premium. Also, new creators who are unsure about their audience can use AVOD initially and see how it goes.

This platform also works best because people do not want to subscribe to every single platform, and AVOD liberates them to stream content free of cost. 

Creators, however, should not expect huge earnings from SVOD as earnings depend on the advertisers instead of the quality of their content.

4. Donations

You can accept donations from your well loved fans who are keenly interested to support your passion, creative work. Get inspired to grow as a creator with easy go-to opportunities. Tipping provides you a great way to build community in the virtual realm to practice any sort of mutual aid. The popularity of these peer-to-peer payment tools have given rise to new strategy of social crowdfunding. Creators can now rely on a network of supporters to partially or independently bankroll their hobby and feed passion in the path of creative endeavors. 

How Does VOD Differ From Live Streaming?

Live stream, as the name implies, is a live session instead of recorded. It is transmitted in real time as it happens and is hence called live streaming. 

On the other hand, the sessions transmitted after recording that viewers can stream anytime are called on-demand video streaming.

Live streaming feature is offered by many VOD platforms, but not all of them. A creator should always check before finalizing the platform whether it offers live streaming.

VODs or on-demand streaming can be used to play, pause, watch later, or download. On-demands do not include live interaction because they are recorded previously and not in real-time.

How To Launch A Successful VOD Business?

To have a successful launch of your VOD channel, it is important that you know your preferred niche. The niche should be the one you have expertise in.

Once you are done with determining your niche, you can take further steps that set you to have a successful VOD channel.

Always ask yourself a few important questions:

  • Which genre am I most interested/experienced in?
  • Do I know my target audience?
  • How much can I spend on starting a VOD channel?
  • Which kind of content am I gonna create?
  • Which kind of revenue option would I want to opt for?
  • What are the most basic features am I looking for in a VOD platform?

Launch Your VOD Channel In 5 Steps

Answering these questions will bring you a clear idea and make you more confident about developing your VOD channel.

Now, let’s explore some important steps to start your journey as a creator and bestow you with a VOD channel.

1. Choose A Professional VOD Service Provider

Regardless of your niche, the first step toward building a streaming channel is choosing a VOD or streaming platform. There are streaming platforms that invite creators to develop their channels, upload their creations, and earn from them.

Since there is a long list of streaming platforms nowadays, it is advised that you explore a few well-known options. For example, you can opt for GUDSHO, an ideal platform for individual creators and business owners.

The platform is also cost-effective and lets you earn from different monetization options. The creators get 100% of their earnings and don’t have to share them with the platform.

2. Customize Your Account Information

Every VOD platform provides you with a space where you can describe the purpose of your channel and your channel’s name and can upload your logo. You can also put an introduction video where you speak about your brand and its intention.

3. Choose The Revenue Options

Once you are sure about which platform you want to go with, it’s time to choose the monetization options. Creators can choose one revenue option or have a combination of more than one. They should, however, always choose the revenue options as per the content they provide.

Above, we have talked about the most common monetization options, such as SVOD, TVOD, and AVOD. You should go with the one that seems most suitable for your content.

Tip: If you are a new creator, you can always go with AVOD or SVOD instead of choosing more complex revenue options like TVOD or hybrid.

4. Upload Videos

The next step is to start uploading videos and putting them out for streaming. While uploading videos, optimize the title and description with proper keywords so your videos can rank in the search engines and be found by your audience.

Always prepare a content calendar with a specific number of videos scheduled for a month. Following regularly and at specific intervals is always better than uploading randomly and being inconsistent.

5. Market Yourself

Never overlook the power of marketing your channel. No matter how much quality you infuse in your video and how amazing your content is, it’s of no worth if no one knows about your channel.

You can spread word of mouth, but in this digital age, digital marketing is the most important thing. So make use of it; hire a digital marketing agency for the same or one experienced digital marketer to handle the marketing part.


Understanding VOD and how it works helps creators to approach creation and monetization more confidently. 

There are various online video platforms, and sometimes the best way to choose one is to explore a few, give them a try, and narrow down your choice.

For monetization, you should focus on one revenue option, and as you get more familiar, you can try having more than one.

Begin Your Video Journey To Make a Profitable Video Business

Frequently Asked Questions (FAQ):

Which video-on-demand platform pays content creators the most?

GUDSHO provides content creators with the most suitable VOD platform where they can independently monetize their content from anywhere at anytime. In other words, it helps professional creators to align their passion & set their own journey as a content entrepreneur. The platform capacitates their art work by empowering them with monetization possibilities. 

What is the best revenue strategy for VOD businesses?

The greatest secret for a successful video streaming business is entirely dependent on its revenue model and content strategy. Some of the major streaming business revenue model comprise of SVOD, TVOD, AVOD, Hybrid Model, etc. Remember, the monetization model is largely dependent on what type of content you’re putting in it.

What is the best way to price video content?

As a business it is essential to understand your customers. This will include what’s their view and what will motivate them to buy. Now imagine you find a platform selling what you need, but instead of clear price you see ‘call for a quote’! Surely you’ll need to give your time to a business to understand about your customer buying habits & curated content with which you’re selling.

Would it be better to create your own VOD platform?

It is always better to collaborate with an independent monetization platform which will assist you in gearing up revenue ladders quickly. Since creating a profitable VOD channel hardly takes much of your time, it is better and feasible option to reap revenue-scaling benefits quickly. Moreover, the investment goes much more higher in terms of platform infrastructure creation.


Srinivasan is a Digital Marketer who is passionate about video monetization based solutions and video on demand platform ideas. He believes in spreading the latest tech trends. He is an avid reader and Loves to share views on the latest technologies, tips, and tricks.


  1. Dennis Livingston Reply

    Thanks for sharing Very detailed information about how video on demand works. I really appreciate this website. Keep writing!

  2. Ana Thompson Reply

    I found this blog post to be incredibly informative and valuable in providing insights into the workings of VOD (Video on Demand). It has shed light on the extensive effort involved in ensuring a seamless and dependable streaming experience for viewers. Now, I have a solid understanding of how to vod works for video business.

  3. John Muniz Reply

    While searching for information on how video on demand works and its benefits, I came across this article that has provided me with a detailed of knowledge. It has not only enhanced my understanding of VOD but also given me a comprehensive overview of the vod platform, Keep sharing!

  4. Heidi Gordon Reply

    I had no idea how video on demand and how vod works for streaming. This article did a great job explaining the differences and how it all works.

  5. Deborah Reply

    Great article! I’ve always been curious about video on demand platform and how it works, and this post explained it perfectly. I love how vod provides a user-friendly platform for both live streaming and on-demand videos. It’s amazing how technology has evolved to allow us to watch our favorite shows and movies whenever and wherever we want. Thanks for the informative read!

  6. Frank Hagan Reply

    I never realized the complexity behind video-on-demand until I read this post. It’s fascinating to learn about the behind-the-scenes processes that make VOD possible. I appreciate how the article broke down the concept and highlighted the benefits of using Vide on on Demand. Keep up the great work!

  7. Joshua Reply

    Good to know about the video on demand. The breakdown of the VOD workflow, from content upload to delivery, was especially helpful in visualizing the entire process.

  8. Danny Benson Reply

    Thank you for this informative blog post on video on demand and how it works! It provided a clear understanding of the concept and its functionalities. I do have a question regarding content management and organization. How does GUDSHO’s VOD platform handle the organization and categorization of video content?

  9. Stephanie Reply

    I thoroughly enjoyed reading this blog post on definition of VOD. The breakdown of the VOD process was well-presented, and the benefits of on-demand video streaming were highlighted effectively. A great resource for anyone looking to understand VOD better!

  10. John Mark Reply

    Brilliantly explained! This concise post cleared all my doubts about VOD and its functionality. Thanks for sharing

  11. Holly Estler Reply

    This well-written article provided a comprehensive understanding of video on demand platforms. Excellent Job!

  12. Perry Jett Reply

    Insightful post on Video on demand platform and how it work! As media houses, we appreciate the clear explanations, which will help us capitalize on the growing popularity of on-demand content and provide better experiences for our viewers. Well done.

  13. Judy Reply

    I was looking for the information about VOD. I now have a clear understanding of video on demand platforms and its definition. The examples and illustrations helped solidify my knowledge. Great job!

  14. Adolph Reply

    Great post about VOD monetization models, especially in delivering premium video content. I appreciate the clear breakdown of the process, making it easier to understand how VOD revolutionizes the way we consume high-quality videos

  15. Doris Reply

    Before I start utilizing VOD platform for uploading my video content, I’m interested in understanding the functioning of video on demand. Could you please provide me with information about your pricing options or packages available?

  16. Melissa Reply

    I’m a fitness influencer. I have been considering creating video content and this guide opened my eyes to the intriguing concept of Video On Demand (VOD). Can you share some tips on how to get started with monetizing fitness videos? My goal is to reach a wider audience through vod platform. Thank you for shedding light on this exciting opportunity!”

  17. Jonathan Reply

    Hi, We are looking to professionalize and both VOD hosting and live streaming setup functions for subscribers and how does pay per view work customers, and want to provide best viewing experience for subscribers.

  18. Arline Reply

    Through this article, we could know the meaning & definition of vod streaming with monetization models is that video on demand platform.

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