Video On Demand is a video delivery mechanism that allows users to watch video anytime, anywhere, on any device they want. vod is different from live streaming because you have the freedom to watch video at your convenience, rather than being limited to a program guide (EPG) or broadcast schedule. vod can be monetized in different ways – -through ad insertion, subscriptions, transactions or pay-per-view, or by distributing premium content on VOD rather than in theaters or next to theaters.
Under what circumstances does AVOD work?
AVOD is a business model that relies on many people viewing videos and ads being economically viable. A publisher is only paid a few dollars per 1000 ad views, and in order to generate sustainable revenue, a publisher needs to attract many people to his platform.
AVOD is typically applied to news sites and UGC sites such as YouTube, Vimeo, where the main source of revenue comes from large audience-driven ads.
Where does AVOD work?
AVOD is a monetization technique that is based on a large number of people consuming content in order to make it economically viable. Publishers typically get paid a few dollars (or more) per 1,000 ad views, which means that many people need to watch the video in order for the publisher to make a significant amount of money.
What content is suitable for AVOD?
In addition to blockbusters, new content and popular content involving famous actors or celebrities, AVOD is a good choice. For such content types, SVOD is usually the better choice, as the cost of displaying the content is prohibitively high for AVOD contracts.
AVOD is particularly well suited for older content and less specialized content. It is also well suited for operators or content providers with a wider range of content, such as catch-up content, TV content and influencer content, such as vlogs of young celebrities.
When is AVOD available as a revenue stream?
AVOD is well suited to free-to-air TV channels and can provide a good revenue stream. Some content is better suited to AVOD, such as longer content and older movies, because there is enough time to show enough ads as part of the package to justify the cost. If AVOD is used for shorter content, such as a 3-4 minute video, there is only time to show one or two ads.
Is AVOD about data?
With AVOD, you can learn more about your users. By combining data from IP addresses and using the unique identifier of the device that is watching the video, you can learn someone’s age, details about their household, the number of devices they own, and sometimes even a person’s health level and weight. IP data provides contextual history, so you can add more to the behavioral data available.
AVOD generates free traffic, and its biggest benefit to operators is the ability to capture subscriber data, which can be used to refine SVOD offerings.
AVOD certainly has a very bright future in the coming years due to explosive growth in ratings, competition for customers, and increased consumer choice.