After a 2 year long litmus test, the entertainment business has restored to all its glory today. Since the affinity towards tailored Video-on-Demand is budding, TVOD platform has grown into an exciting space for studios and content makers. Transactional Video on Demand (TVOD) monetization model requires you to pay only for the content you watch.
In India, lately in TVOD space, BookMyShow Stream has grown significantly. In just 1 year of its launch with a compelling content library they sold 52,000 streams by April 2022. Rather than having multiple subscriptions, viewers do not mind paying only for what they want to watch. This empowers the stakeholders to ponder over and leverage the economic might that TVOD format can bring.
This blog will take you through its highlights to understand how you can scale your revenue with TVOD in online video platform.
What Is TVOD?
Transactional Video on Demand lets users buy a particular piece of VOD content for a particular price. Users are charged a one-time fee for the allotted number of views. The views can be a decided number of times, one view, view for a fixed period of time, or unlimited number of views for the bit of content they want to watch. E.g. Apple’s iTunes online store.
Transactional VOD can be in 2 forms:
- Electronic Sell Through (EST) – Here Unlimited Views can be accessed with one-time cost.
- Download To Rent (DTR) – Digital rental content is accessible for a limited time with a one-time fee.
TVOD prices are normally very attractive as the idea is to make this source a native choice for the users.
When Is Transactional Video On Demand The Right Model For You?
TVOD services are best suited to those content types that are highly distinguished and are captivating. In such events users are ready to pay a premium for such videos as they offer unique value to them. It can also be applied in cases where viewers would prefer to pay for content on a “pay as per usage” basis. And so, TVOD can be employed on contents like Movies, Concerts, Music, and, Sports, etc.
TVOD can be seen applied as ‘pay per view’ for live sports, limited-period access for educational content and electronic sell-through on iTunes and Google Play Movies. E-Learning and entertainment TVODs have by and far proven very successful since the TVOD was introduced. BYJU’s and Udemy are 2 best educational TVOD platform examples. These videos get the premium due to the value it adds in form of higher scores and learning new skills.
Similarly, in the entertainment business, TVOD can be built for highly rated films that are not on SVOD. An example is the animation movie ‘Despicable Me’. It has achieved cult status and many fans may want it for repeated view.
TVOD models are also applied as a supplement to SVOD or AVOD video monetization. A variation of TVOD is also being introduced for newly released films within weeks of their theater release for a higher price, as TVOD bears the maximum potential to generate income from a single video.
How Is TVOD Different From TVOD
- Value for Money Appears To Be Higher for SVOD Platforms
SVOD offers unlimited access to content in lieu of a low price per month. Usually the one-time fee may seem higher to the user for one time access. Therefore, SVOD may seem like a better deal to the user on the face of it.
- Customer Loyalty Is Difficult in TVOD
It takes lesser effort to retain users in SVOD as they get accustomed with the monthly payments. Retention of customers however, is tricky with TVOD because viewers give a thought before each payment. Hence, acquisition of new users and retention of existing ones require the same efforts.
- Suitable For New VOD Platforms
The revenue fetched per user is more compensating for the smaller size of audience. SVOD targets a larger audience base for profitability. TVOD can therefore be used when the content is new to make up for the lack of scale. Later, it can be progressed to SVOD to target a larger audience base.
- Simpler Royalty Calculations in TVOD Model
In case of e-learning, SVOD course creators take a part of the revenue on a pro-rated basis. This sometimes involves complicated calculations. The creators in this model get lower royalties. But, TVOD offers higher royalties to creators which might as well amount to 50% of every course purchased.
Advantages & Disadvantages of TVOD (Transactional Video on Demand)
- Superior Content
The content in this model will be watched by thousands of viewers for its exclusivity, hype or importance. Therefore, it is possible for publishers to set up a paywall control for the number and time of views.
- Leveraging from New Videos, Series, and Films
The audience remains willing to pay for a new movie or TV shows first. Considering this, It has the potential to earn maximum revenue from fresh video releases like movies and series. Since the audience for TVOD channels is limited, there is control on distribution and piracy risks too.
- Renting out Content
TVOD pricing model allows renting videos in parts and for a limited time period. Pricing can also be set for different types of video content.
- Works well in Hybrid Monetization Models
TVOD works wonders in a Hybrid model. While users can be kept hooked to your free content, the premium content can be sheltered with paywalls. This strategy works optimally for higher revenues in a prolonged period.
How do I find the right model for my business?
- Competitive Analysis
To determine the viability of your idea, take insights into your competitors. Look at their products, pricing, promotion strategies and most importantly why users select them.
- Establish the Goals
To pick between TVOD and SVOD, think what you want from the content you have. While TVOD has a wide appeal, SVOD focuses on creating more content to justify users’ monthly subscription. With a vision, you will be able to draft the right plan and gather relevant resources to decide the course of your monetization journey.
- Opt for the Monetization Model
Based on the quantity of content you have to offer and the type of content, draw a distinction between SVOD and TVOD. SVOD yields a consistent revenue but TVOD delivers a higher average sales worth.
- Design your Proposal
Reflect upon what offer you want to place to your users? The offer can be an upsell with SVOD or AVOD content, or it can simply be an SVOD or a TVOD offer.
Concluding Thoughts
The call for personalized content and audience’s aspiration to enjoy it with a complete cinematic experience is the testament in favor of TVOD. It is a considerably stronger monetization substitute for higher revenues. But, a proper plan and action for generating an open-handed ROI is the key. Work with CONTUS Vplayed to level-up your video streaming game with a suitable plan, cutting-edge infrastructure, strong access controls, completely secure copyrights and an AES encrypted video security.