Research shows that by the end of 2022, the total revenue generated by the Video-On-Demand segment of the TV industry is going to be over 98 billion US. Dollars.
Introduction
It’s no surprise that the video on-demand segment of the TV industry is flourishing, with millions of people moving to subscribed TV networks and channels that have VOD platforms.
As someone looking to be a successful TV network owner, you must be wondering how video-on-demand categories work. You’re probably also curious about the procedure of creating a video-on-demand platform for your channel’s content so that you can attract a larger internet-based audience.
Well, look no further. We’re going to explain to you what VOD truly means, how you can take inspiration from Netflix’s VOD model, the benefits of having a VOD TV channel, and how you can get a high-quality VOD channel created with the right software.
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What’s a Video On-Demand Platform?
If you’re not familiar with what video on-demand (VOD) is, let’s first get you familiar with it. VOD is a media distribution system that delivers content to users without the requirement of a traditional playback device. Whereas traditional TV made consumers view content on a set schedule, VOD offers videos at the viewer’s convenience; viewers choose what to watch, when they want.
Before the late 90s, the most common form of media distribution was Over-the-Air, which broadcasted channels through TV signals. During that time, there was a lot of media being broadcasted simultaneously, meaning if viewers ended up watching one thing, they had to miss out on another.
Then thanks to the advancement of worldwide internet access, VOD has quickly became the most popular distribution system. This is because with the arrival of the video-on-demand system, viewers no longer have to pick and choose between content. Every video is available online and can be accessed and seen at any time.
Now through Over-the-Top (OTT) platforms, video on-demand has become a possibility for all TV networks, no matter their size.
Why Think Netflix?
Netflix is the undisputed king of video-on-demand platforms on the internet, making tens of billions of dollars in revenue ever since it came into existence and gaining over 222 million+ subscribers worldwide.
The reason for mentioning Netflix and its growth is so that you can fully grasp the concept of having VOD categories on your channel. When you think VOD, the first example that should come to mind is Netflix.
The reason it should be what comes to mind is because over the years, Netflix has found its success in the streaming industry by creating a user-friendly interface, a large video library, and content worth watching.
Most people believe those things only happened because Netflix is a large corporation, but creating VOD categories on your channel the same way Netflix has is possible. And in today’s world, it’s easier than ever.
How to Create Your Very Own Video On-Demand TV Network
If you’re tired of seeing sub-par results in terms of viewership and subscriptions, then you know switching to, or adding a VOD option to your TV network, will help you gain the numbers you’re looking for. But how do you create a VOD network? Well, the step that matters the most is choosing the right TV network OTT software provider.
With the right software, you’ll be able to get your TV Network up and running without the hassle of learning complicated code. Make sure you choose a CMS software that gives you the opportunity to create your very own library of content and playlists, uses a stunning interface with your brand’s colors and logos, and has multiple monetization methods to boost your revenue.
I know you might have been hoping for a step-by-step, how-to-guide on creating a VOD network, but unless you’re someone who is incredibly technologically advanced, the simplest way to make your channel VOD compatible is by finding the right OTT provider with the right CMS software.
Without an OTT provider, you would have to figure out how to pay for your own Content Delivery Network (CDN), which is a bank of high-powered and pricy servers. Finding software that takes care of everything your channel needs is by far the easiest and fastest way to launch your VOD categories.
Benefits of Having a VOD TV Channel
Now it’s time we go over some of the major benefits your TV channel is going to receive once you choose to have VOD options available for your content. Let’s check them out:
Reach a Larger Audience
It is said that 4.6 billion people have access to the internet. Those 4.6 billion people spend more than an hour each streaming different kinds of content every single day.
Having your content as a web-based VOD library, will allow you to organically reach more of these people and gain new subscribers.
This is because having VOD distribution lets your content’s presence pan across devices like desktops, smartphones, Roku, Fire TV, Apple TV, tablets, HTML5, smart TVs, etc. The users on these devices can access your content easier just because your content is readily available on each device. They can’t find your content unless it’s there, and that’s what VOD does; uses the internet to give viewers immediate access to your content.
Offer Viewers What They Want
As mentioned earlier, VOD allows viewers to choose what to watch, when they want. They no longer have to wait for scheduled programing to tell them when the show they want to watch will be on or waste their time watching something they aren’t interested in.
By creating 24/7 available video-on-demand categories for your viewers and potential subscribers, they can go straight to the video(s) they’d like to view and watch as many times as they’d like. They can even pause, rewind, fast-forward, and control the video to their exact liking.
In the modern world, VOD is the new normal and what people are naturally used to when it comes to watching a TV network’s channel. As history has showed again and again, it’s important you give viewers what they want.
Create a Subscription-Based Model
The thing that cable TV channels are known for is their constant ad-inclusion model. They insert ad after ad just to make a steady flow of revenue. Going back to our Netflix example, that isn’t the case with its VOD categories. You watch movies and series without interruptions from advertisers.
Yes, you should select an OTT provider that offers ad-injections as a monetization option, but if you want to, you can actually provide your viewers with ad-free content. This is done by setting up a beneficial subscription-based model the same way Netflix has (what can we say, they’re a great example).
With the right OTT provider, you will have the options to charge a subscription for the entirety of your channel’s content, a category of your channel’s content, or specific videos in your library. Charging a subscription for certain content, while leaving some content free, is an excellent way to get viewers hooked on your channel so that they pay for your “premium” subscription-based videos. Using VOD subscriptions this way is a great option for channels who are putting out fan-worthy content.
More Affordable for Viewers
Finally, a very important benefit which will be the reason for gaining and keeping viewers, is the affordability of your VOD categories. It’s no secret that anyone who still pays for cable each month is taking a nice chunk out of their wallet. So, other than having VOD content be super accessible, the main factor that pushes people towards VOD services is the low prices.
With VOD channels, viewers know exactly what they’re paying for and why. The content they love is presented in front of them to be played whenever they are ready for a fraction of the cost of cable.
The best part about being a channel with VOD capabilities is that you, the channel owner, gets to decide the cost per subscription. Again, this goes back to choosing the right OTT provider so that you can be in control of the amount you want to charge your viewers.
It’s also extremely important to note that your OTT provider shouldn’t be taking a large percentage of your subscription revenue.
Conclusion
Now that video-on-demand has officially taken over the way people watch videos, it’s important that channel owners understand what VOD truly is and how to implement it for their content.
By adapting and learning from Netflix’s extremely popular VOD model and selecting the right OTT service provider, channel owners can reach a larger audience and expand the way they monetize their content.
Here’s to your success!
For more reading check out The Genisus Of Roku