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 VOD vs OTT: Which is Better for Your Streaming Business?



Today, you can see lots of websites that provide streaming services. Although interest in them is growing, only a small percentage of users understand the distinction between OTT and VOD. Still, many people are confused about the OTT and VOD differences. Because both of these platforms provide similar video delivery services, it’s easy to get them mixed up. There are, however, some distinctions between them. This blog is for you if you want to learn more about VOD and OTT and decide which platform is best for you.

Without much delay, let’s discuss these two concepts and see how they differ;

What is VOD?

VOD stands for Video on Demand. It is a method of content distribution that lets you access TV programs and movies at any time, allowing you to get complete control over how you watch videos on your PCs, mobile phones, Television or other devices.

Unlike traditional TV, video on demand doesn’t need satellite or cable connectivity. If you have access to the required internet bandwidth, you can watch videos. It gives you complete control over how you wish to play, pause, fast-forward, or rewind a video.

What is OTT?

OTT is an acronym that stands for Over-the-Top. It refers to the new way of delivering film and television content via the internet whenever we want, on a wide range of devices, rather than through traditional broadcast, cable, or satellite pay-TV providers. In other words, OTT video streaming entails paying an internet service provider for internet access to watch Netflix without paying for cable TV.

When you watch a movie or series on any of the OTT platforms, you don’t need to download the files, but rather you can stream them from beginning to end – this is one of the major advantages of OTT. In fact, OTT platforms are designed specifically for live streaming and content streaming without the need for downloading.

What Distinguishes VOD and OTT?

The following are some key differences between OTT and VOD Platforms;

  • Content Delivery Methods

OTT platforms, as previously stated, allow users to stream live videos via the internet instead of cable or satellite, as traditional TV does. VOD, on the other hand, makes use of all these platforms, depending on the provider. OTTs can only stream online content during the broadcast. They are no longer accessible after the live stream has ended.

  • Business Models

OTT, or the Over the Top platform, uses a distribution model of video content over the internet, whereas VOD uses the consumption model of video content.

  • Types of the Content Offered

VOD services include both pre-recorded and downloaded content. You can either have your own set of content or content from your VOD service that you have purchased, rented, or recorded. In addition to video content, an OTT platform provides users with access to audio broadcasts such as podcasts.

  • User Experience

Both OTT and VoD platforms provide a smooth user experience. However, the primary distinction between the two is the way in which data gets transmitted. Unlike OTT, which only uses the internet, VOD also makes use of cable and satellite.

VOD vs. OTT: Which is Best?

What is Video OTT? Video-on-Demand vs. OTT: Which is best for streaming services? – If this is your doubt, don’t worry! To help you, here we have outlined a few factors that may help you decide between OTT Vs. VOD. 

  • Target Audience

Understanding your target audience is critical when deciding between OTT and VOD platforms. Insights from your target audience can help you figure out which platform is best for you and how to reach them most effectively. Moreover, you should market your content and ensure that it is easily accessible to your target audience.

  • Content Library

Mass-market platforms are aimed at the public or mainstream audiences. Their content library includes general films, television shows, and other forms of video entertainment. 

The growing online video market will increase competition among premium OTT services such as Netflix, Amazon, and Hulu. Even if you already have a large content library, researching and analyzing your target audience is critical. VOD platform, on the other hand, works well for brands looking to leverage sponsorship deals.  However, in order to reap the benefits of VOD, you must have a large, high-quality content library, and ensure that you have a team capable of handling this workload.

  • Monetization Model

If you want to start your own OTT and VOD business, you must earn money or get a return on your investment by monetizing your content. There are several ways to monetize videos, such as:

  • Subscription (SVOD)
  • Transactional (TVOD) / Pay Per View (PPV)
  • Video Advertising (AVOD)

And much more.

It doesn’t matter whatever monetization model you choose – your platform needs to be flexible enough to support it.

For instance; If you choose a video ad-supported (AVOD) monetization model, the platform must support interaction with various ad servers and ad networks.

  • User Experience

Three important factors to consider when developing an app are its look, feel, and functionality. Even if your content library is well-stocked, a poorly designed app will cause unwanted drop-offs and prevent users from finding relevant content. An uncluttered interface, easy navigation, custom recommendations, search options, and high streaming quality are some of the basic features that will set your app apart from the crowd.

  • Cost Considerations

According to studies, a large percentage of viewers believe that the cost of paying for television and cable is relatively higher, with less accessibility and control.

We might all agree that creating a streaming service is a costly venture with numerous factors to consider. However, the cost of launching a streaming service varies greatly depending on factors such as content licensing, development, and marketing expenses.

Wrapping Up

OTT vs. Streaming; Which is best? As our transmission techniques advance, the answer to this issue will change. Differentiating between the two may seem so important today. Still, with more and more service providers developing platforms that integrate both the VOD and OTT principles, it is difficult to predict how this debate will evolve in the future. On the whole, companies that have started using these mediums are trying to make them last as long as possible.

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