The number of video streaming services has increased dramatically in recent years and this increase in number has led to diversified revenue approaches. Some platforms use Ad-based video-on-demand (AVOD), and some use subscription-based video-on-demand while other platforms use transactional video-on-demand (TVOD) models.
Transactional Video-on-demand (TVOD) also known as Pay-per-view (PPV) is a revenue model which allows your viewers to either rent or buy the contents from your platform. TVOD platforms are different from SVOD (Subscription Video-on-Demand) services like Netflix or Amazon Prime, where users pay a monthly fee to access a large library of content.
According to a report by Statista, Revenue in the TVOD/PPV segment is at US $10.20 billion in 2023 and is expected to show an annual growth rate (CAGR 2023-2027) of 5.55%, resulting in a projected market volume of US $12.66 billion by 2027.
Importance of TVOD in the streaming industry
TVOD provides users with more flexibility to choose what they want to watch, rather than having to subscribe to an entire library of content. They can pick and choose the individual titles they are interested in and pay only for what they watch. It provides an additional revenue stream for content creators and distributors as they can earn money from each transaction. This can be especially beneficial for new releases or popular content that can command a higher price.
TVOD makes it possible for users to access premium content that may not be available on subscription services. It can also provide a way for users to purchase content they may have missed on traditional TV. provides an opportunity for niche content that may not be popular enough to justify a subscription service, but still has an audience willing to pay for it.
What is a TVOD Platform?
TVOD platform is a video streaming service model that makes money by selling or renting videos. Viewers can buy a particular video content for a specific price. Typically, when it comes to electronic-sell-through platforms, owners have the full-fledged right to actually own the entire video content. Using the TVOD/PPV model, the streaming services can sell their videos by setting a single view, a particular period, or infinite views.
TVOD business model can be executed as:
- Pay Per View for live sports
- Fixed period access to educational content
- For EST (electronic-sell-through) through iTunes, Google Play Movies or Amazon Video
Some Examples Of TVOD Platform
iTunes became one of the early pioneers of the TVOD model, allowing users to purchase and rent movies and TV shows on a per-item basis. It was also one of the first platforms to offer a centralized marketplace for digital content, making it easy for users to discover and purchase content from a single location.
Today, iTunes continues to be a popular platform for accessing and managing digital content. Although its main focus has shifted towards music and the Apple Music streaming service, it still offers a wide range of movies, TV shows, and other content for purchase or rental.
Amazon’s video shop
Amazon’s video shop is a transactional video on demand (TVOD) platform that allows users to rent or buy movies and TV shows for a one-time fee. It is a popular service for those who do not want to subscribe to a streaming service but still want to access the latest movies and TV shows.
It allows users to rent or purchase movies and TV shows on a pay-per-view basis. It is a transactional video on demand (TVOD) service that is separate from Amazon’s Prime Video streaming service.
Sky Box Office
Sky Box Office is a popular TVOD service in the UK and Ireland, and offers a convenient way for customers to access premium content without the need for a subscription.
Sky Box Office is a transactional video on demand (TVOD) platform that allows Sky TV customers to rent movies and sporting events on a pay-per-view basis. Customers can access the service through their Sky set-top box and choose from a selection of recently released movies, as well as live and on-demand sporting events.
Different Types of Transactional VOD Monetization Model
PPV (Pay-per View)
PPV or Pay-Ver-View model allows viewers to pay a sum for a one-time viewability for watching movies, shows, events, etc. This model is commonly used for special events, such as boxing matches or concerts, where viewers pay a fee to watch the event live or to access it for a limited time period. PPV is often used as an alternative to subscription-based models, and allows viewers to pay only for the content they want to watch, rather than committing to a monthly or annual subscription.
EST (Electronic Sell-through)
Electronic sell-through (EST) refers to the digital distribution of media content, such as movies and TV shows, where the consumer purchases and downloads the content for permanent ownership or long-term rental. It is a popular alternative to physical media formats such as DVDs and Blu-rays.
DTR (Download To Rent)
DTR (Download To Rent) is a type of transactional video on demand (TVOD) service that allows users to download a rented movie or TV show to a device for a limited time period. Users pay a one-time fee to rent the title, and then have a specified period (usually 30 days) to begin watching the content. Once they start watching, they typically have 48 hours to finish the rental before the content expires and is no longer available to view. DTR is a convenient way for users to access digital content without the need for a constant internet connection, and is commonly offered as an option by online video rental services.
How Is TVOD Different From Other Monetization Models?
TVOD vs SVOD
In Subscription-based video-on-demand model, a huge library of video content is created for a large audience base and access is given to the audience by charging a monthly or annually recurring subscription fee from them. This model works well for content that has a broad appeal and can support a recurring revenue stream. It provides viewers with a more flexible way to consume content and typically offers a wider range of content to choose from.
TVOD vs AVOD
Ad-based video-on-demand models allow your audience to access the content by seeing the ads to watch the content for free without paying or subscribing. The platform owners generate revenue by inserting ads into video streaming, either via Client-Side AD or Server-Side AD insertion.
Know more about – What is AVOD and How does it Work?
When is TVOD the right model for you?
TVOD (Transactional Video on Demand) can be the right model for you if:
- You have exclusive or premium content like live sporting events or concerts.
- You want to monetize your content through a one-time rental or purchase fee.
- You have a library of content with varying values, and you want to offer viewers the flexibility to choose what they want to pay for.
- You want to reach a wide audience with your content.
- You want to control the price of your content.
- You are willing to invest in marketing to drive traffic and interest to your content.
TVOD (Transactional Video on Demand) can be a suitable revenue model for a range of industries, such as:
The entertainment industry
TVOD (Transactional Video on Demand) can be a suitable revenue model for the entertainment industry in various ways.
- TVOD can be used to release new movies, TV shows, or other types of content to a broad audience. Studios and production companies can charge a one-time rental or purchase fee to access this content, allowing them to monetize new releases without the need for a subscription model.
- TVOD can also be used to offer catalog content for rent or purchase, which can provide a new revenue stream for older contents that are no longer generating revenue through other channels.
TVOD provides a flexible and convenient way for the entertainment industry to monetize content, whether it’s new releases or older catalog contents, and can help studios, production companies, and independent filmmakers generate revenue in a competitive and evolving market.
Independent film industry
TVOD can be a way for independent filmmakers and content creators to monetize their work directly. They can distribute their films or shows through TVOD platforms, charging a rental or purchase fee, which allows them to bypass traditional distribution channels and reach a wider audience.
TVOD (Transactional Video on Demand) can be a suitable revenue model for the educational industry for following reasons:
- TVOD can be used to offer individual courses or video tutorials for a fee. This model allows students to pay for only the courses or tutorials they need, rather than committing to a full subscription or membership.
- It can be used by educational institutions to monetize their existing video content. This could include recorded lectures, educational videos, or other instructional material that can be rented or purchased by students or the general public.
- TVOD can also be used to distribute educational content created by individual instructors or experts, allowing them to monetize their knowledge and expertise.
TVOD can help fitness industry in many ways such as:
- TVOD can be used to offer special workouts including exclusive content. This model allows people to pay for only the workouts they want to do, rather than committing to a full gym membership.
- TVOD can be used to distribute fitness content created by individual trainers or studios. This could include recorded workouts, yoga classes, or other fitness-related material that can be rented or purchased by people looking to workout at home.
- TVOD can be used by gyms and fitness studios to monetize their existing video content. This could include recorded classes, training sessions, or other material that can be rented or purchased by members or the general public.
Any industry that produces high-value content that is not tied to a subscription or membership model can benefit from using TVOD.
TVOD is the right business model for a video streaming platform that has exclusive contents and will provide a good amount of sales each time. However, it is vital to consider your audience, and business goals and accordingly plan your revenue model for maximum growth.
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