Educational article_TV Acronyms and Initialisms Understanding VOD
ll industries utilise acronyms and initialisms; it’s a valuable way to clarify terminology and industry jargon and works to stop cumbersome phrases. While they succeed in their primary purpose: to make words far easier and quicker to understand, the many acronyms that now define the vital elements of most industries have led to the growth of online glossaries and cheat sheets. This point is no different for TV advertising, specifically CTV advertising. CTV being an initialism that stands for Connected TV, which is similar yet not interchangeable with OTT, which, when broken down, means ‘over the top’ and, rather than referring to just internet-connected TVs, also ‘refers to video content streamed via the internet instead of accessed with traditional cable or satellite TV ‘ (1).
The world of CTV is ever-developing; it is an ecosystem that is evolving quickly, and what accompanies its growing popularity is an expansion of key terms that explain it. This article takes something many people have heard of, the media distribution system that is called VOD, the acronym for video-on-demand and breaks down the different types. The VOD space is expansive and sometimes confusing but learning it is vital because the ramifications on the media industry are significant.
VOD
Video-on-demand, is any content distribution that lets viewers choose when, where, and how they view media. As long as a person has the necessary internet bandwidth, they can watch as long as they wish, as a cable or satellite connection is not needed. Therefore, ‘it essentially gives you complete autonomy on how you consume media in the form of videos on your TV, smartphone, computer, or any other device ‘(2).
The different types of video-on-demand include SVOD, TVOD, PVOD, BVOD and AVOD.
SVOD
Subscription video-on-demand allows users to consume as much content as they want at a flat monthly rate. Example of SVOD services include Netflix, Amazon Prime Video, Disney+, Yupp TV, Discovery+ and ZEE5. Due to consumers paying for a subscription, there tend to be no ads with SVOD offerings; however, recently, this has changed with Netflix introducing the ‘Basic with Adverts’ plan, which is now their lowest-priced tier to help gain new subscribers.
SVOD statistic: In a report published by data analytics firm Kantar Group, studies showed that ‘the number of paid online video subscriptions dropped from 30.5m to 28.5m last year’ (3). However, it continues to acknowledge that ‘demand for video subscriptions in the UK picked up from October to December. The number of active paid online video subscriptions in the country rose by 55,000 over the period ’ (3).
https://www.maestro.io/blog/what-is-vod
TVOD
TVOD is transactional video-on-demand, a model in which consumers purchase on a pay-per-view basis. Types of purchases exist with Apple iTunes, Amazon’s video store, and the Cineplex store, whereby people rent or sometimes buy content for permanent access. Therefore, its main difference from SVOD is the absence of a recurring payment.
PVOD
Premium video-on-demand, differs from TVOD, as only the most valuable content is on PVOD, such as Hollywood Films. Premium video content viewership bases itself on the payment of a premium fee for earlier access to the same content that others would get access to at a later stage.
PVOD statistic: ‘It has been reported that the pandemic has contributed to a transformation in movie distribution in favor of PVOD over traditional movie houses, as studios are able to realize 80% of revenue through PVOD versus 50% of traditional theater box office receipts ’(4)
BVOD
Broadcaster video-on-demand is content made available on demand by broadcasters and this includes demand services such as ITV Hub, All 4, Sky Go, UKTV play, and My5.
BVOD statistic: After the launch of ITVX in December last year, ITV wrote a post about their new streaming platform, which included two statistics to explain where BVOD sits across video consumption. They began by explaining that ‘in 2021, Broadcaster VOD accounted for 10 % of total broadcaster TV viewing and 26% for 16-34s’ and furthered this point by mentioning that ‘77% of BVOD is watched on a TV set and 44.6% of all adults watch BVOD on a TV set each week'(5).
https://www.thinkbox.tv/how-to-use-tv/broadcaster-vod/introduction-to-bvod
AVOD
AVOD is ad-based video-on-demand, a video monetization model that is free for users to watch and that generates revenue through advertising. Examples of AVOD include YouTube. Facebook Watch, Dailymotion, Pluto TV and the Roku channel.
AVOD statistic: In research by FreeWheel, published in RapidTVNews, it found that ‘UK CTV viewers were the most likely to tune in to AVOD platforms…On average, UK CTV viewers used five streaming platforms, exceeding the European average of 3.5 with AVOD popular amongst Millennials and Gen Z. As many as 86% of AVOD viewers aged 18-34 tuning in to free ad-supported premium video platforms each week’ (6)
Nicole Winson
Sources used:
(1) https://www.adelphic.com/blog/ott-vs-ctv-advertising-whats-the-difference/
(3) https://www.uktech.news/growth-strategy/uk-video-streaming-subscriptions-fell-20230130
(4)https://en.wikipedia.org/wiki/Video_on_demand#cite_note-42
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