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Premium Video On Demand: All You Need To Know

Amita Kumari Published on : 10 February 2022
premium video on demand


VoD (Video on Demand) has given us the choice of playing our desirable videos anytime we want, rather than waiting for the dates of TV broadcast or theatre premiere. 

VoD is cost-effective, gives unlimited access, and can be played on any device. Not only this, few kinds of VOD systems facilitate  the use of different monetization models too. Premium Video on Demand is the most popular one of them.  It introduced the paid privileged viewership system for OTT content.

In this blog, we are going to discuss what is Premium Video on Demand and how PVOD brings major changes to business revenue and why PVOD streaming is more profitable than theatre.

What is Premium Video on Demand?

The PVOD business model enables viewers to get early access to the video content before its theatrical release. Users just need to pay a certain premium fee and they can watch their favorite video on the OTT platform. 

PVOD content access can be for a lifetime or a one-time watch, depending on the VOD service provider.

How Do Premium Video-On-Demand Services Impact Business Revenue?

The key reason why businesses choose monetization models is their authority to create revenue from on-demand content. Content monetization also adds an opportunity to collaborate with advertisers and get a secondary revenue generation source for your streaming services. 

Monetization plans vary from one another based on their packages and access periods.

Talking about the monetization models, they have been revolutionised in such an innovative way that each type is powerful enough to drive engagement and operate sales. For example, Amazon Prime now has an option for users to rent or buy videos for a particular period. It is included in the TVOD (Transactional Video on Demand) model. SVOD (Subscription-based Video on Demand) and PVOD monetization models are implemented on popular OTT platforms like Netflix, HBO Max, Disney+, Hulu, and others.

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How is PVOD different from SVOD and TVOD?

Originally, Premium Video on Demand was a form of Subscription-based Video on Demand or Transactional-based Video on Demand monetization model. The key difference between PVOD and TVOD/SVOD is that the user can pay a fee to gain access to video content before other TVOD or SVOD subscribers.

How much revenue can be generated through PVOD?

According to Statista, around 74% of US consumers are interested in watching movies via Premium Video on Demand. A sudden surge in such interest led to the popularity of not just online platforms, but also facilitated with the Premium Video On Demand (PVOD) revenue model, which gives a paid elite viewership system to video monetization platforms. 

There is a certain time gap between the theatrical releases of movies and their availability on the OTT platform. The exclusiveness of PVOD has allowed viewers to watch their favorite movies before they are released worldwide. Sometimes, both Premium Video on Demand and theatrical release are done at the same time. By doing this, businesses get a chance to cover both types of audiences, one who likes to watch movies in theatres and the other who enjoys OTTing. 

The best example of one of the most successful PVOD releases is Mulan. This film was released on Disney+. To watch Mulan, viewers had to be Disney+ subscribers and pay an additional $30 to get access to the movie. PVOD releases give content owners 80% higher revenue, and the content charges are also higher.

Wrapping up

The easy-to-access nature of VOD platforms has been playing a primary role in its ever-growing popularity among worldwide viewers. The VOD business is growing and can be a great way to produce income through creating and marketing engaging videos. Video monetization done in the right way guarantees the success of On-Demand content broadcasters.

Muvi One is an enterprise-grade OTT platform provider focused on delivering the best-in-industry OTT platform services to its clients. Muvi One being your go-to partner for video, audio, and live streaming services offers inclusive features like multi-DRM, CDN, Transcoding, Encoding, Cloud Hosting, Built-in Monetization, and much more.

To explore how Muvi One can help you develop a customized enterprise-grade OTT platform, we encourage you to start with Muvi One’s 14-day free trial. During the free trial, you get complete access to Muvi’s CRM and comprehensive features.

Start your free trial now!

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Written by: Amita Kumari

Amita is a content writer with Muvi marketing team. She has over 5+ years of experience in content creation and development. Passionate by heart, she likes to cook, write, sing and do yoga to pass time.

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