TVOD: What are its advantages and When should you use it?

The COVID-19 pandemic has transformed the way people consume and are entertained with video content. While video-on-demand (VOD) services have already attracted attention, the pandemic has further accelerated their adoption.

Not surprisingly, traditional pay-TV providers lost more than 6 million subscribers every year between 2019 and 2021.

However, most streaming providers struggle to choose the best monetization models for their platforms. There are numerous types of monetization such as SVOD, AVOD, and TVOD.

We’ll take a closer look at what TVOD is, its pros and cons, and how it compares to other monetization models.

What is TVOD?

**TVOD**, or transactional video-on-demand, is a monetization model that allows content creators and publishers to sell their content on a pay-per-view basis. Unlike SVOD (Subscription Video on Demand), TVOD does not require viewers to pay a monthly or annual subscription fee. Instead, you can let them buy or rent the content you want to see.

Popular platforms using TVOD include Amazon’s Prime Video Store, Apple’s iTunes, and YouTube.

Pay-per-view (PPV): Requires users to pay a one-time fee to watch an event, such as a football match or concert.

Electronic Direct Selling (ETR): Involves giving users lifetime ownership of a content item.

Download to Rent (DTR): Allows users time-limited access to content.

Advantages of TVOD

TVOD is a great way to generate excitement about new releases. It creates a sense of exclusivity and entices viewers to pay for your content. Also, they can purchase ownership of a single piece of content they want instead of paying a subscription. that includes other content, e.g. The latest data shows that TVOD segment revenue will reach $10.420 million in 2022.

**TVOD vs. SVOD vs. AVOD**

Unlike ad-based video-on-demand **(AVOD), TVOD gives you more control over how the experience is viewed and ensures viewers are not interrupted by irrelevant ads. Also, they are not tied to specific subscription packages. Unlike subscription video-on-demand [(SVOD)](https://www.mogiott.com/post/know-everything-about-svod-before-launching-your-own-ott-platform)**, TVOD gives viewers the flexibility to only pay for the content they want. Watch. This, in turn, increases customer satisfaction and helps you retain more viewers.

Also, limited access to new releases minimizes the risk of piracy and gives you better distribution control.

Disadvantages of TVOD

The slight disadvantage of TVOD is that it may not help you build a lasting relationship with viewers. They may visit your OTT platform for a specific movie or web series and never come back after watching it. If you’re a new content creator, viewers may not be willing to pay for exclusive access to your videos.

How and When to use TVOD?

Instead of wondering if you should use TVOD, it’s better to find a suitable way to implement it in your OTT platform. TVOD works best when used in conjunction with other monetization models like SVOD. May charge users a nominal subscription fee to allow them access to regular content. And you can ask them to pay extra for premium content.

It’s important to have a deeper understanding of your audience and determine if they’re willing to pay for exclusive access to new content before going down the TVOD route.

Keep in mind that when launching a new OTT service, it will take some time before you start generating revenue through TVOD.

Looking for ways to maximize your OTT platform profits? **Request a demo** to learn more about OTT monetization models.