What Is AVOD?

While researching the best video streaming platforms to capitalize on, you've probably come across people bemoaning or praising AVOD. If you're like most people, you probably found yourself wondering, what is AVOD? Today, we're taking a look at different types of video on-demand services, including what AVOD is, what TVOD is, and what SVOD is.

AVOD, sometimes referred to as advertising-based video on demand, is an audiovisual media distribution method that is free to consumers. YouTube is one of the most notable AVOD examples because of how effectively the advertisements are monetized. It is not uncommon for two video advertisements to play before the YouTube video starts.

Depending on the length of the video, it is also not uncommon for video or text advertisements to make an appearance one or more times in the middle of the video. Also, a final video advertisement is often placed at the end of the video.

What Is TVOD?

TVOD, or transactional video on demand, usually entails watching VOD content on a PPV (pay-per-view) basis. For example, Amazon's video store allows media consumers to watch videos, but they have to pay for the privilege of accessing the video every time they want to watch it. This is similar to YouTube allowing you to rent a video digitally for 24 hours. However, in the latter case, it is possible to pay for access once and watch the video more than once.

Note, there are three types of transactional video-on-demand - PPV, EST, and DTR. We've already touched on PPV and DTR (download to rent). What we haven't yet discussed is EST, or electronic sell-through. One of the most notable examples of EST is iTunes. You can pay once for a movie or an episode of a TV show, and you can watch it as many times as you want.

What Is SVOD?

SVOD stands for subscription video on demand. This type of video on demand allows people to pay a flat monthly rate and view as much content as they want, usually without viewing advertisements. However, times are changing. Even Hulu, which used to be ad-free with a monthly or annual subscription, is charging for access to the streaming library in addition to forcing people to watch ads.

Which VOD Revenue Model Will Make Me the Most Money?

To capitalize on the OTT (over-the-top) industry successfully, you need to consider your customers carefully. Develop a customer persona for your ideal customer. Does she prefer to consume her media without video advertisements interrupting her several times throughout the TV show or movie? SVOD may be the best fit for you to get into. Is she price-conscious? AVOD will probably be your best bet.

There are many ways you can earn advertising revenue on streaming platforms, including advertising-based video on demand. Unfortunately, managing sponsors and advertisers can be difficult. Schedule a free consultation with us today at Lightcast to learn how we can make it easy for you to make advertising money on video streaming platforms.