When confined to their homes for months due to the COVID-19 pandemic, a major portion of the global population found their entertainment on the streaming videos online. A sudden surge in such interest led to the popularity of not just online platforms but also it facilitates with the Premium Video On Demand (PVOD) revenue model, which gives a paid privileged viewership system.
What Is Premium Video On Demand And Its Business Model?
PVOD- Premium Video On Demand is a business model of media distribution where access is provided for the streaming videos at an earlier stage than it would have been otherwise with any other type of video-on-demand. The premium video content viewership is based on the payment of a premium fee for the earlier access to the same content that others would get access at a later stage. Although it was launched and tested a decade before it didn’t get the same popularity as it is getting since the pandemic. When the movies were stopped at theatres, this has been serving as its alternative to reach viewers.
PVOD is not the only business model for video-on-demand content. There are Transactional Video On Demand (TVOD) as well as the Subscription Video On Demand – SVOD business models. The former provides access on a pay-per-video basis where users get either temporary or permanent access to the content depending upon the video on demand platform.
How It’s Different From Other Monetization Models Like TVOD And SVOD
As per the Premium video on demand definition, it gives early access to the content that is equivalent to having a privilege that is not available with either TVOD or SVOD. Here the user is paying a premium amount of money to watch a movie or a bunch of movies or videos. By doing so, it serves as online theatres, especially during this pandemic where there is no other way of releasing the movies.
How It Will Impact Studios And Theatres?
There is a specific time gap between the theatrical release of a film and its availability on the OTT platform. Most films generate the bulk of their revenue within a specified period of time. But there is often a difference of time in this collection period and the OTT availability of the films which the PVOD can capitalize on. As for the studios, they are likely to have shows available as on-demand videos within a few weeks of their launch.
To read the full article about Premium Video on Demand