Transactional video on demand (TVOD)

Definition

Transactional video on demand (TVOD) is a distribution model that allows consumers to purchase or rent video content on a pay-per-view basis, providing instant access to films, shows, or other video content. This model contrasts with subscription-based services, as it enables users to pay only for the specific content they want to view without ongoing fees.

5 Must Know Facts For Your Next Test

1. TVOD provides flexibility for consumers, allowing them to only pay for the specific content they want rather than committing to a monthly subscription.
2. This model is popular among platforms like iTunes, Amazon Prime Video, and Google Play Movies, which offer both rentals and purchases.
3. Rental periods for TVOD content often last 24 to 48 hours, after which the content becomes inaccessible unless re-rented or purchased.
4. TVOD can be a significant revenue source for studios and distributors, especially for new releases that attract viewers who prefer instant access.
5. The rise of TVOD has been influenced by changing consumer behaviors and the demand for immediate access to video content without long-term commitments.

Review Questions

• How does transactional video on demand differ from subscription models in terms of consumer payment and access?
  • Transactional video on demand (TVOD) allows consumers to pay only for the specific video content they want, either through renting or purchasing it. In contrast, subscription models require users to pay a recurring fee for unlimited access to a library of content. This difference gives consumers more control over their viewing costs and allows them to make choices based solely on their interests rather than committing to ongoing payments.
• Discuss the impact of transactional video on demand on the film industry and how it has changed revenue generation strategies.
  • Transactional video on demand has transformed revenue generation in the film industry by providing an alternative income stream beyond traditional box office sales. It allows studios and distributors to reach audiences directly through digital platforms, increasing accessibility and convenience for viewers. This shift means that even after a film's theatrical run ends, it can continue generating revenue through rentals and purchases online, which is crucial for maximizing a film's profitability.
• Evaluate the implications of TVOD's growth in relation to consumer viewing habits and how it affects traditional media consumption.
  • The growth of transactional video on demand reflects significant changes in consumer viewing habits, highlighting a preference for immediate access over traditional media consumption methods. As more viewers opt for TVOD options, traditional platforms like cable television may face challenges in retaining audiences who value flexibility and choice. This shift also pressures traditional media companies to adapt their strategies, potentially leading them to incorporate more digital offerings or explore hybrid models that combine various viewing options.

Related terms

Subscription Video on Demand (SVOD): A model where users pay a recurring fee to access a library of content, usually available for unlimited viewing during the subscription period.

Video on Demand (VOD): A system that allows users to select and watch video content whenever they choose, often encompassing both transactional and subscription models.

Pay-Per-View (PPV): A service that allows viewers to purchase individual events or programming, typically used for live sports or special events.