Video on Demand is also known as VoD. In the past time, media distribution broadcasting used to do in the form of over the air programming, and it was the most common source of broadcasting media distribution. When Internet Protocol Television (IPTV) Technology and the internet started to develop, the public began to move from the traditional mode of watching videos to non-traditional methods. This is the reason behind the climax of the video on demand platform in television and other devices. VoD requires an internet connection to stream videos on devices like Television, Mobile Phone, Tabet, PC and many more. Users can also download those videos on their devices.
Revenue in the Video-on-Demand segment amounts to US$34,777m in 2020 and the annual growth rate (CAGR 2020-2024) of 3.6%, resulting in a market volume of US$40,095m by 2024.
The market’s largest segment is Video Streaming (SVoD) with a market volume of US$25,894m in 2020. And the user penetration is 24.7% in 2020 and is expected to hit 27.6% by 2024. The average revenue per user (ARPU) currently amounts to US$22.92. (source)
Tips To Remember Before Launching A VOD Business
A business’s first requirement is to get success and become popular among people who are getting benefits from it. So here are some engaging tips to remember before launching a VoD business. That will help you in your business.
Plan Video Content
If you are in the business of video and media, then before making it available to the public, you need to plan your video content. Decide what kind of video content you want to stream on your VoD application or website. Imagine yourself creating a successful Netflix clone that allures the audience and engages them with its high-quality videos. You can do it by buying the rights of some flourishing videos or else you can produce some viral-worthy videos.
Choose The Correct Monetization Strategy
Monetization of any business depends upon some factors like the monetization strategies you follow. There are various ways to make your video on demand platform generate revenue, some of them are by charging the users for subscription, transactional model, or you can generate income by showing ads on your video. The success of a VoD platform depends upon the monetization strategies followed. It would help if you decided what tactics work for your targeted audience.
Analysis of the Competition
Before starting any business, it is good to analyze the competition in the market. It will help to grow that business better. It is good to get an understanding of the video content they offer. It will help you understand the gaps that will ultimately help you to launch your unique content and can demand a premium subscription. Like Netflix did in 2015 after releasing an American crime web series “Narcos”. In return, it asked for Netflix subscription because no other VoD platform has that content.
Rich Backend Technology
Behind every great and efficient application, there is always a rich-featured and solid backend technology works. Some of the rich-featured backend technologies are CDN, DRM (Digital Marketing Management), PCI Compliance, and White-labeled platform. You can use some or all of them to make your video on demand business better.
Promote Your Content
Promotion is a way to recommend a business to the audience through various techniques. You can promote your upcoming videos and premium videos to the viewer that will try to build eagerness in viewers regarding your content. Apart from this technique, you can cooperate with some big banner producers and can promote their content on your website that will also help to catch the attention of your partner’s viewers.
Live Video Streaming
On the list of your offerings to viewers, you can add live streaming that is also a growing over the top (OTT) trend for the top players in the industry. You can offer live sports as well as live award functions. These are the things that attract the audience maximum. Or else you can provide weekly live streaming videos like cooking and art & craft.
Quality and Quantity
Make sure to provide quality content to the audience. The more categories and genres you will include, the more will be the changes for viewers to get addicted to your content. Always try to involve unique content regularly. Be financially prepared for this exclusive content.
There is a lot of competition in the video-on-demand platform with big players like Netflix, Spotify, Hotstar, YouTube and many more. If you have a good library of good video content like TV shows, movies, and documentaries, then VoD solutions are for you. You can hire some expert developers and teams to manage all other tasks. It is a financially draining process, but if you have enough, then go for it.