Pay-Per-View Video Streaming – Everything You Should Know


When it comes to video content monetization, the first models that come to mind are SVOD (subscription-based video-on-demand) and AVOD (advertising-based video-on-demand). It is probably because of the buzz that large streaming companies created in the media.

But there is another profitable revenue-generating approach, along with these models – TVOD (transactional-based video-on-demand). It is also referred to as a pay-per-view. TVOD model is a viable alternative to subscriptions and advertising.

According to Statista, TVOD revenue is forecasted to hit $10.2 billion in 2023. By 2027, its revenue is expected to reach $12.66 billion at a CAGR of 5.55% during the period of 2023-2027. The number of users is predicted to amount to more than 861 million people by 2027.

Let’s have a closer look at the pay-per-view model.

What is TVOD?

So, what is TVOD? As we said, TVOD is transactional-based video-on-demand, otherwise known as a pay-per-view monetization mode. Unlike subscriptions, TVOD allows viewers to purchase one video at a time to watch it. Each video requires payment. As a content provider, you can set the duration of access – either for a limited time or offer lifetime access.

There are various situations in which you can apply a pay-per-view model. You can sell access to every piece of content as Apple iTunes does. Some platforms charge a fee for any special occasion, such as concerts, plays, or virtual events.

Services streaming educational content also use a TVOD model widely. A viewer can purchase one course, and others will remain inaccessible.

A pay-per-view monetization model for live streaming or on-demand videos can be beneficial if done correctly. Knowing your target audience can help you maximize your profit.

Three Tips on Using a TVOD Monetization Strategy

#1 Think about access duration

Besides setting prices for every video on the platform, you need to consider the access duration you will provide your viewers. As we already mentioned, the length of access varies from several hours to a lifetime. It is up to you to decide.

Some services prefer to set limitations, as viewers might share videos they paid for with their friends and relatives. To note, Netflix has been involved in a battle with password-sharing for some time.

There is a rule that a content provider should allow access longer than the length of a video in case a viewer has technical issues, wants to re-watch, or something else.

#2 Do competitors’ research

It is of vital importance to research other TVOD platforms’ offerings and pricing. You will be able to understand the value of your content and create a unique selling proposition. You will be able to make your offer competitive.

#3 Be clear

Ensure that your viewers are aware of access duration, all permissions, and restrictions. They should know when access to a video starts and when it ends so that they can plan to view your content.

Inform them about how much time they can watch a video they purchase if there are any limitations. Some platforms allow downloading videos – viewers should be aware of that.

Tell them about all permissions and restrictions about your content. They need to know about them before the purchase to avoid confusion.

Final Thoughts

TVOD model stands in the same ranks as AVOD and SVOD. It is one of the most widespread monetization strategies in the video streaming industry. A content provider allows viewers to pay for each video. As a result, people watch what they want on your service, not burdening themselves with subscriptions.

However, you should be clear about all terms of watching your videos. Viewers should know everything before the purchase so that there are no issues.



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