key term - Transactional video on demand

Definition

Transactional video on demand (TVOD) is a content delivery model that allows users to purchase or rent individual pieces of video content, usually through a digital platform. This model contrasts with subscription services, as it gives consumers the flexibility to pay only for the specific content they wish to access, rather than committing to a monthly fee. TVOD often includes movies and special events, making it an attractive option for viewers who prefer pay-per-view options without ongoing obligations.

5 Must Know Facts For Your Next Test

1. TVOD platforms are popular for releasing new movies shortly after their theatrical runs, enabling consumers to watch at home.
2. This model often provides higher revenue per view for content creators compared to subscription models, as each rental or purchase is a direct payment.
3. Many major streaming platforms offer TVOD options alongside subscription services, giving consumers varied choices for accessing content.
4. With TVOD, consumers have the ability to control their viewing habits by selecting only the titles they wish to watch, making it a flexible choice.
5. Some platforms implement a time-limited access window for rentals, typically allowing viewers to watch the content for 24-48 hours after purchase.

Review Questions

• How does transactional video on demand differ from subscription models in terms of consumer engagement and spending?
  • Transactional video on demand differs significantly from subscription models as it allows consumers to pay only for the specific content they want to watch. This can lead to different consumer engagement patterns, as TVOD users may browse titles based on interest without being tied to a monthly commitment. As a result, while subscription models encourage regular consumption of a wide variety of content, TVOD can lead to more focused spending on particular titles or events.
• What impact does transactional video on demand have on the distribution strategies of film studios and content creators?
  • Transactional video on demand has transformed distribution strategies for film studios and content creators by providing an additional revenue stream alongside traditional theatrical releases. By allowing new films to be rented or purchased shortly after their release, studios can capitalize on audience interest and maximize profits. This flexibility can be especially beneficial during times when theaters are less accessible, making TVOD an integral part of modern distribution practices.
• Evaluate the role of transactional video on demand in shaping consumer preferences in the digital media landscape.
  • The role of transactional video on demand in shaping consumer preferences is significant as it caters to the growing desire for immediate access without long-term financial commitments. This model enables consumers to selectively engage with content based on their interests and viewing habits. As audiences increasingly favor convenience and flexibility in their media consumption, TVOD’s adaptability and focus on specific titles are likely influencing broader trends in how digital media is marketed and consumed.

Related terms

subscription video on demand:

A service model where users pay a recurring fee for unlimited access to a library of video content.

video on demand: A system that allows viewers to access video content whenever they want, rather than at scheduled broadcast times.

pay-per-view: A payment model that allows customers to buy access to specific events or shows for a single viewing, typically in live contexts.