What is VOD

What is Video on Demand (VOD) – How does it work?

Video platforms like the name suggests tell us about the platforms that are usually used to host any number of videos. This means that these online websites allow content creators, streamers and entrepreneurs to upload, store and distribute their videos using them as a source. 

We all know that a video content’s popularity has been peeking over a decade which has resulted to a growing need for platforms that specifically deal with visual content. 

They are designed in a meticulous manner to have a straightforward and comprehensive user interface while streaming any sort of content. 

The very fact here is that unlike textual form of content or images, videos are commonly found to be extremely large files that requires professional aligned solution. While video hosting platforms might be introduced as a very new approach to reach wider audiences, it is proved to be around for a quite long time.  

This is because the rise in popularity of video content usage has gone ever since higher and higher. Yes, it all started with YouTube which is the most popular free video hosting platform that we have known in the world. 

Video platforms are packed with individual videos that are compiled in a video library. Some come as various tutorials, movies, tv shows, explainer videos, instructional videos, etc. They can be categorized and promoted as a blogposts, promo VODs which can give users more clarity on how to use them for their own purpose. 

Here when we are talking about VODs usability, let’s delve deeper in knowing what it is all about!!

What Is VOD?

VOD or video-on-demand provides the facility to stream any content that gives viewers the capability to choose when, where and how they want to watch them. 

In other words: users are free to watch any piece of content by simply clicking on a link and start viewing a video. For example let’s say if you click the embedded YouTube video below which then starts playing, can be called as video-on-demand at its core form. 

Since VOD content is streamed via the source of internet, it doesn’t rely on cable networks or satellite connections like terrestrial broadcast television. All you really require is to have enough bandwidth for you to keep watching! 

The main highlight is it allows users to search and watch any pre-recorded streaming content at their own convenience using any internet-enabled device.

How does the VOD work?

Video on demand enables users to watch movies, TV shows or any other video content whenever they choose from ardent collection of library. It empowers them to stream on any device that they select. In order to get video on demand enabled, it is necessary to be stored on a video server in a digital format. 

Let’s say for an instance, when a piece of video content is selected by a user, it is first compressed and transmitted via a stable internet connection. Later it is decompressed and then decoded once it is reached at user’s device.

Types Of Video on Demand (VOD)

It’s evident that people are eagerly looking for attention-drawing video content for which they’ll be willing to pay for quality subscriptions. There are some different options in the table when it comes to how you can charge people for your content. Then you can decide upon how you can set a price once you decide on the options. 


Subscription video on demand is a method of earning money recurrently by providing them the means to enjoy whole lot of content collections. They are packaged for a monthly subscription or annual fee. These subscription plans are automatically renewed month after another until the user tends to opt out. Therefore, you can consider getting paid on a monthly or annual basis for your personalized array of video or audio content. 


Ad-based video model is another type of monetization service in which consumers are provided with skippable as well as non-skippable ads options. Basically, to watch the actual content it becomes quite a bit of compulsion to view advertisements. Some of the popular examples of AVOD can be associated with YouTube, DailyMotion, MX Player, etc. AVOD is most useful for people who have a large fanbase as ad views require minimum number of investment. It allows to generate great sum of actual revenue. 


TVOD is known as transactional video on demand. The term transactional is used before video on demand because the revenue model involves charging one-time fee for certain number of views. It can be either one view, a set duration to view or unlimited views. TVOD video streaming is right opposed to SVOD model. Unlike the subscription-based model which requires users to pay a subscription fee for accessing a large pool of content, TVOD requires users to pay a fee for every piece of content they wish to see.


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. 

Profit Share via Referrals 

Get a chance to earn your payoffs by redirecting your target audience to top-most brands. As video influencers, you can retrieve a commission based on every purchase or sale that happens via their referral link. This is directly infused in content or description which is an add-on element in the main media which is being put up. The key aim here is to facilitate both parties with win-win situation. One focuses with, brands that can achieve sales while the other focuses on creators getting beneficiary output with an alluring profit-share. 

Sponsored videos 

Although traditional advertising are still in place, audiences get to have a better understanding over a brand by only connecting and trusting from creator reviews. Creators can effectively gain a lump sum revenue stream via sponsored content campaigns. Working with the apt brands can help you to add more value for your target audience. You can create paid content or infuse product promotions within the video creations  and earn a significant revenue time and again. This can match your audiences’s interests with the products you recommend to them. 

Okay folks we have seen the variables of VOD that can cater to your audience-viewing needs at any point of time.. 

Now let’s understand..

How Does VOD Platforms Helps for Business

We all know that investing valuable resource into a new project seems to be risky! There have been instances where many businesses go for a setback because of financial constraints and mismanagement. So, will there be a worth to spend on something which is not known much just like a video-on-demand website?

The answer to this question, helps you to learn that businesses can reap a quite a few benefactors by having their own video-on-demand channel in a platform.. And those important factors are here as follows.. 

To create trustworthiness and credibility

Every creator designs his business plan to come off as an authority and effective leader in their industry, right? Well,  a VOD business can help you to have them. You can earn every bits of credibility by establishing your brand authority and build loyalty with potential customers. 

Let’s take in a case, that while you’re trying to sell a product or service, you are aiming with a thought that people would believe you’re an expert in your field. To prove this evidently, what can be more trustworthy than a high-quality video content on your site!! Videos can allow you to showcase your knowledge & nurture trust with your audience. 

Apart from product videos, video on demand platforms also allow you to create how-to videos, or even share brand’s story.

Informative and educating your audience

There has been a huge demand for informative and educational content which has been growing for some time from now. According to studies from Google digital video users have seem to acquire greater new skills along with knowledge. 

So, if you are having a business which sells products or services it requires some basic explanation or education about it. In that case, you will need a stronger mode of communication which can assist to inform and educate your target audience. This is where a unified VOD platform comes to your rescue.  

Of course you can host your videos on YouTube or another video-sharing monetization platform. But, when you have your videos on your platform there are greater chances to keep viewers on your website longer. This initiates greater chances for users to take required action such as buying a product. 

Exhibiting your personality 

Creating a VOD platform is most important than ever since it is great to showcase your brand’s personality. By all means one needs to know that a company’s story is one of the most essential elements which are helpful in marketing. And to elaborate on that, at recent times consumers are now don’t show any interest to get associated with a faceless brand. 

Instead they are looking to connect with businesses whose outcomes are extraordinarily exibited and spoken about.. 

Many researchers say that Brand trust is the qualifying factor for users who make wise decision in purchasing the product or service. For them to achieve this, entrepreneurs can rely on VOD platform which allows them to present company’s personality and build trust with customers. 

Exploration of New Source of Revenue

Video-on-demand based platforms can help streamers, influencers or content creators to explore new means of revenue streams. For example, if you are owning a business which is based on brick-mortar model, you can use a platform to merchandise your products or services digitally. 

The best VOD platforms can help you to create and sell any kind of content. If you are having expertise in your related field, you can share your piece of knowledge to the world and get paid in return for it. 

A video-on-demand business can help you to generate sufficient amount of leads through a platform. Use the digital space to capture the contact information from your viewers who show much interest in what you are likely to offer. 

How to Advertise on VOD Platforms

Advertise on VOD Platforms

Optimizing in search results 

When people search for on-demand or live videos the first thing that appears in Google search results talks about VOD platform. So it is highly likely to shape your VOD streaming business through a dedicated website and finally when customers are approaching the website you can potentially convert them into paying subscribers. 

Optimizing the VOD platform is the effective manner to reach and engage more audience base. It requires intricate study on the keywords used, analysis of competitors, creating rich snippets, optimizing rich video meta data and more.

Socially making content your brand

As content creators you can share your content on many social media platforms which help in building an awareness which inculcates in increased traffic generation. It is important to be in contact where your most of audience resides in. This facilitates to build an online community. 

You can create social media pages which talk about your VOD platforms across handles like Facebook, Instagram, LinkedIn or Twitter depending on your approached audience. This can help people to know more about your content brand which can provide better engagement in your VOD platform.

Connecting via email marketing

Sending a tailor-made email about your products and services as per user’s needs help in converting a visitor into a paying subscriber.  Although email is the oldest method of marketing, it seems to be quite effective when it comes to generating results. 

Sending emails while regarding offers and coupons, notifications with respect to new feature updates, any product releases in VOD platform. The best way of praticing is to personalize each mail and send it to your users online.  Also you can freely use a variety of bulk emailing campaigns to reach as many people as you can.

Centralized dashboard for analytics

It is much so important that ever, when it comes to choosing best VOD platform. See to it that analytics dashboard is also integrated within the platform. This can provide you insights from various chunks of data in which you track website visitors. Some of the metrics talk about where are visitors coming from, on which day of the week, how long they spend time on your website, and particularly on which page. 

This gives out the details about goal conversion rate. And with the help of these data,you can have much information in hand about your visitors. You can target audiences with better strategic marketing campaign to reach reach goals in a faster pace.

Offer coupons & discounts

Naturally people will prefer offers and discounts. Let’s take for an example that VOD platforms provide people with videos at a discounted price while anticipating it on new movie releases or during seasonal times. There will be a spike in attention from people who approach it towards your platforms. 

All you need to do is, make sure your offer goes noticed amongst audience so that can promote it exactly where they reside. Giving away coupons during the festival seasons will also result with converting users into paying subscribers.

What is the Difference Between VOD and Live Streaming?

We can adopt both methods of online video delivery, one is with live streaming & another focuses on VOD. At its core, VOD provides a method to stream pre-recorded video content. On the whole, you should never lose the opportunity to leverage video monetization ways when it comes to accessing live content for later use via a VOD solution. 

However, recording your content for later use with VOD distribution provides the ability to maximize your reach and monetize your content competently. It shouldn’t be about live streaming vs VOD, rather it should consist of both video streaming methods. 

Definitely, choosing a platform which provides both valuable distribution options to stream is a great chance to depend upon.With a unified platform major purpose would be is to save time, money and patience in dealing with multiple distribution methods, making your job overall easier for longer period.


Video streaming is the most powerful tool which can be leveraged by any type of modern businesses. But having said that, knowing where and how to start can be little vague. After all earning in millions isn’t that easy as it looks since you may be unaware of the streaming architecture. 

Also, you’ll need to provide seamless experience to your customers you are reaching out to you. That’s why we’ve covered about all details that you should be knowing while selecting a video-on-demand platform and building a VOD business for your own.

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.

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