In the world of streaming video, there are three common business models that content providers use to generate revenue: TVOD, AVOD, and SVOD. Each of these models has its own strengths and weaknesses, and understanding the differences between them is essential for anyone looking to get involved in the streaming video industry.

TVOD, or transactional video on demand, is a business model where viewers pay for each individual piece of content they watch. This can include movies, TV shows, or other forms of video entertainment. TVOD is sometimes referred to as “rental” or “pay-per-view,” as it typically involves a one-time fee to access the content for a limited period of time. This model is commonly used by streaming services like iTunes, Amazon Prime Video, and Google Play Movies & TV. One of the benefits of TVOD is that it provides viewers with the flexibility to watch what they want, when they want, without being tied to a subscription service. However, TVOD can be more expensive in the long run for viewers who consume a lot of content.

AVOD, or advertising video on demand, is a business model where viewers watch content for free but are shown ads during the viewing experience. This model is commonly used by streaming services like YouTube, Hulu, and Pluto TV. AVOD is a popular choice for viewers who want to access a wide range of content without paying for it. However, the downside is that viewers must sit through advertisements during their viewing experience. Additionally, AVOD is often criticized for the number and length of ads shown to viewers, which can be intrusive and disrupt the viewing experience.

SVOD, or subscription video on demand, is a business model where viewers pay a monthly or annual fee to access a library of content. This model is commonly used by streaming services like Netflix, Disney+, and HBO Max. SVOD is often praised for its convenience and affordability, as viewers can access a large amount of content for a relatively low cost. Additionally, SVOD services typically do not show advertisements, which can be a big draw for viewers who are tired of sitting through ads. However, the downside of SVOD is that viewers are limited to the content available on the service they subscribe to, and they must continue paying the subscription fee to maintain access.

In summary, TVOD, AVOD, and SVOD are three common business models used in the streaming video industry. TVOD provides viewers with the flexibility to watch what they want, when they want, but can be more expensive in the long run. AVOD allows viewers to access a wide range of content for free, but they must sit through ads during the viewing experience. SVOD provides viewers with a large library of content for a relatively low cost, enhancing the experience for viewers.