Transactional video on demand (TVOD)

Definition

Transactional video on demand (TVOD) is a streaming model that allows consumers to rent or purchase individual pieces of content, such as movies or TV shows, for a one-time fee. This model contrasts with subscription services, where users pay a flat fee for access to a library of content. TVOD offers flexibility for consumers who may not want to commit to ongoing payments and can directly influence revenue generation for content providers.

5 Must Know Facts For Your Next Test

1. TVOD allows users to rent or buy content without needing a subscription, providing a pay-per-view option.
2. The rental period typically lasts for a limited time, such as 48 hours, after which the content is no longer accessible.
3. Major platforms offering TVOD include Amazon Prime Video, iTunes, and Google Play Movies, making it widely accessible.
4. TVOD can be advantageous for new releases, allowing users immediate access to newly available titles without waiting for them to appear on subscription services.
5. Revenue from TVOD can significantly boost earnings for filmmakers and studios, especially during peak release periods or for blockbuster titles.

Review Questions

• How does TVOD differ from other video on demand models like SVOD and AVOD?
  • TVOD is unique because it requires users to pay for each piece of content they wish to access, either through renting or purchasing. In contrast, SVOD models charge a flat fee for unlimited access to a catalog of content over a subscription period. AVOD allows viewers to watch content free of charge but includes advertisements during the viewing experience. This difference in payment structure impacts consumer choice and how platforms monetize their offerings.
• What are some advantages and disadvantages of using the TVOD model for both consumers and content providers?
  • For consumers, TVOD provides flexibility and the ability to only pay for what they want to watch without committing to subscriptions. However, this can lead to higher costs if viewers frequently rent or buy many titles. For content providers, TVOD can lead to immediate revenue generation from new releases, but it may be challenging to build a consistent viewer base compared to subscription models that guarantee regular income.
• Evaluate the impact of the transactional video on demand model on the film industry and its distribution strategies in the digital age.
  • The rise of TVOD has transformed the film industry's distribution strategies by enabling filmmakers and studios to reach audiences directly through digital platforms. This model allows for more targeted marketing and can create additional revenue streams outside traditional theatrical releases. It also encourages rapid access to new titles, which can help mitigate piracy by providing instant legal options. As consumer preferences shift towards convenience and instant access, understanding and adapting to TVOD's implications is essential for stakeholders in the film industry.

Related terms

Subscription Video on Demand (SVOD): A streaming model where users pay a recurring fee to access a library of content, such as Netflix or Hulu.

Advertising Video on Demand (AVOD): A model that allows users to watch content for free, but with advertisements interspersed throughout the viewing experience.

Content Licensing: The process by which content creators sell rights to distribute their films, shows, or other media to platforms like TVOD services.