This article explains the difference between VOD and OTT, and explains the terms “SVOD”, “TVOD” and “AVOD”, the basic terms used to describe the different business models applied to OTT services.
Almost everyone knows the terms OTT and VOD. OTT stands for “over-the-top,” the term used for the delivery of film and TV content via the internet, without requiring users to subscribe to a traditional cable or satellite pay TV service. A typical Video On Demand (VOD) service allows users to watch any one of a large collection of videos at any time. The VOD platforms enable audiences to pick and choose what they want to watch from their collections and access that content whenever they’d like.
Understanding the difference between VOD and OTT
These term are often very confusing to people because they basically seems like different terms for the same thing but they aren’t. VOD also refers to video on demand services through cable network. OTT is a subset of the overall VOD category and it is transmitted to the viewer via the internet without requiring users to subscribe to a traditional cable or satellite pay-TV service.
SVOD (Subscription based video on demand)
Subscription VOD is a type of service, where you enter into a subscription agreement, which will then grant you access to the service typically to watch until you unsubscribe, that means watch with no limits. The best example of an SVOD service is Netflix.
TVOD (Transactional based video on demand)
Transactional (or Transaction) VOD is opposite of SVOD. TVOD will normally not charge you anything to sign up for the service/create a user profile. Instead, you will pay an amount based on the content you watch. Most often this relates to movies, but is also used for series and in particular for sports and events. iTunes is an example of TVOD.
AVOD (Advertisement based video on demand)
Ad-based VOD is a model that is free for the users. users are free to login and stream videos, in return for spending time watching ads. YouTube is the best example of AVOD.
There are services that operates with mixed models as well, where the customer will for example pay a monthly fee, which will grant access to parts or certain types of content. But where there can still also be extra fees applied to watch particular pieces of content, or a live sports event for example.