Tips & Tricks

What is TVoD and Why It’s Growing In Popularity?

4 min read

Transactional video on demand (TVOD) has become increasingly popular with evolving technological advancement. TVOD is a relatively new model of video content monetization. It allows users to purchase individual videos rather than monthly or yearly subscriptions.

This article will explore the concept of TVOD and discuss why it is gaining popularity. Moreover, we will review some statistical data to understand its future and prospect. Let’s get started from the beginning.

What is TVoD?

TVod stands for Transactional video on demand. TVOD is a video monetization model that allows viewers to access and purchase individual premium content through digital services rather than purchasing a subscription. TVoD model, also known as PPV, means pay-per-view monetization model. Among the video monetization models, it’s the latest evolution in providing a more tailored experience to users. As such, it is quickly gaining traction among content creators and viewers alike.

The model helps consumers to save money by giving them the power of choice. At the same time, video content owners benefit from this model because they can engage with more consumers and generate more revenue.

This video monetization model has recently exploded in growth due to its ability to respond quickly to user demands. Moreover, it still offers the convenience of traditional subscription-based services also. This flexibility makes the TVOD model a more attractive option for content creators and viewers looking for a convenient way to access quality videos.

How does TVoD Differ from Subscription Video On Demand (SVoD)?

SVOD is another popular way for consumers to access video content. It allows users to pay for a monthly, half-yearly, and yearly subscription in exchange for unlimited content streaming. TVOD differs from SVOD because it allows consumers to purchase digital video content individually. TVOD pays content providers upfront by selling or renting each video. On the other hand, SVOD companies work on a revenue-sharing system where they split profits with content owners after subscribers have paid their monthly fees. It makes TVOD more profitable for content providers compared to SVOD.

TVoD vs. SVoD

Feature TVoD SVoD
Payment model Pay-per-view or rental basis Monthly subscription model
Content accessibility Access only to rented or purchased video A vast library of video content for subscribers
Content Ownership Own content for a rental period or indefinitely if purchased Access as long as the subscription is active
Content availability Limited selection of videos or movies Large content selection, including original productions
Advertisements No advertisements May include commercials in between videos
User control Control over content and viewing time Content arranged in linear format with limited control over viewing order
Price May have higher cost for popular or recent content Lower monthly cost for access to the vast content library

Benefits of TVoD Model

Benefits for the Content Providers

The Transactional Video on Demand (TVOD) monetization strategy enables content providers to maximize the revenue generated from their exclusive content. Compared to other monetization models, TVOD offers a range of benefits for content providers:

Monetization Strategies: TVOD allows content providers to set their pricing structure. This custom pricing model helps them make more money per view than other streaming services.

Exclusive Content: In this monetization model, content providers can offer exclusive content not available anywhere else. It helps them increase their subscriber base and potential revenue streams.

Viewers Access: TVOD allows viewers to access only the specific content they want. They don’t have to pay for a subscription package with unwanted or unnecessary content.

Increased Reach & Engagement: Content providers can reach a much wider audience than traditional distribution methods. It allows them to build relationships with viewers and increase engagement. Ultimately, it drives more revenue.

Marketing Opportunities: With a TVOD platform, content providers can promote their products and services directly to viewers. It can be a great way to get the word out about new releases or promotions.

These advantages make TVoD an ideal choice for content creators.

Benefits for the Consumers

The main benefit of TVOD for consumers is its flexibility and control. Apple TV, for example, allows viewers to choose exactly what they want to watch without subscribing to expensive packages. Customers can buy content on a pay-per-view basis, allowing them to watch only what they are interested in and simultaneously save money. Moreover, some providers may also offer the AVoD model to provide free content. The hybrid monetization model always performs great in digital media consumption.

Market Size and the Growth of TVoD

The transactional video-on-demand (TVOD) market size is growing. According to a report from Statista, the worldwide revenue of the TVoD platforms will reach $10.07 billion in 2023. The expected CAGR is 6.37%, resulting in a $12.89 billion industry by 2027. It was a global statistic of TVoD business. The most revenue will be generated from the USA market, estimated at 2,279 million in 2023.

The emergence of new technology has enabled TVOD platforms to expand their offerings and reach new audiences. The model allows content providers to monetize their products differently and attract larger audiences than ever before. So undoubtedly, the industry will be a significant revenue source soon.

Examples of Some Popular TVoD Platforms

There are multiple popular TVoD platforms worldwide. The most popular of them are:

  • Netflix
  • Hulu
  • Vudu
  • iTunes
  • Amazon prime video
  • Sky Box Office


In conclusion, TVOD is a video-on-demand service that allows users to purchase or rent content individually. It differs from subscription-based services because they require no contract or long-term commitment. This model offers more flexibility and freedom for both content providers and consumers. TVOD is growing in popularity due to its convenience, affordability, and potential to reach new audiences. The media and entertainment industry has opened up opportunities for smaller companies to distribute their content while providing an alternative option to traditional streaming services.

Join 200,000+ satisfied streamers

Still on the fence? Take a sneak peek and see what you can do with Castr.

No Castr Branding

No Castr Branding

We do not include our branding on your videos.

No Commitment

No Commitment

No contracts. Cancel or change your plans anytime.

24/7 Support

24/7 Support

Highly skilled in-house engineers ready to help.

  • Check Free 7-day trial
  • CheckCancel anytime
  • CheckNo credit card required

Related Articles