What is VOD (Video on Demand) and How Does it Work?
Video on Demand (VOD) is a technology that allows viewers to watch video content whenever they choose, rather than at a scheduled broadcast time. Users select and stream movies, TV shows, or other content instantly through internet-connected devices.
How VOD Works
VOD systems stream content via internet connection through:
- Set-top boxes
- Smart TVs and streaming devices (Roku, Apple TV, Amazon Fire)
- Computers and mobile devices
TV service providers select available content and determine rental period lengths. Unlike traditional linear TV where content airs at specific times, VOD allows users to pick content at the program level with full playback control (pause, rewind, fast-forward).
Three Types of VOD
AVOD (Advertising-Supported Video on Demand)
Free streaming services funded entirely by advertising. Examples: Tubi, Pluto TV
Read more about AVOD
SVOD (Subscription Video on Demand)
Platforms charging monthly or annual subscription fees. Examples: Netflix, Disney+, HBO Max. Some offer ad-supported tiers at lower prices.
Read more about SVOD
TVOD (Transactional Video on Demand)
Pay-per-view model where users pay one-time fees for individual content. Examples: Apple TV rentals, Amazon Prime Video rentals.
Read more about TVOD
VOD Advertising
VOD advertising, particularly on AVOD platforms, reaches audiences who are highly engaged with content they actively choose to consume. VOD viewers watch more television than average and are more likely to engage with relevant advertising due to self-selection bias. Modern CTV advertising platforms enable advertisers to plan, buy, and measure campaigns across AVOD programming alongside traditional linear TV.