More and more viewers cut the cable cord and switch to video-on-demand (VOD) platforms which have become more than just movie-streaming services. Online learning, fitness training, specialized events, DIY workshops – basically anything can be found on VOD platforms.
Businesses from various industries monetize their content libraries. Yoga and fitness clubs sell videos with training and exercises. Educational institutions go online to share their knowledge with the rest of the world. Governments use VOD platforms to be more transparent for their citizens.
VOD platforms drive additional revenue for companies and serve as a tool of communication with customers.
Considering launching your own VOD platform? You’ve come to the right place! But first, let’s establish what VOD platforms are and what you need to set one up.
Table of Contents
- Create a Powerful VOD Platform in 2023
- What is a VOD platform?
- What are the Benefits of Video-On-Demand Platforms
- How to Build a VOD Platform in 4 Steps
- Setplex Solutions for Building OTT Video Streaming Business
- White-Label VOD Platform
- End-to-End Solution
- AVOD, SVOD, and TVOD Monetization Models
- Security/DRM
- Recommendation Engine
- Customer Support
What is a VOD platform?
A VOD platform allows viewers to access videos stored on servers. Video content is pre-recorded and available at any time on any device, including Smart TVs, iPhones, smartphones, tablets, and desktop computers.
It is accessible through a website or applications customized for various gadgets. The VOD platform provider can opt to have both.
On-demand streaming platforms usually contain entertaining or educational content. By offering content via a VOD platform, a business not only generates extra revenue but also forms a bond with its viewers. As a result, companies cement ties with their target audiences, and audiences get access to the content they need, a win-win situation.
What are the benefits of Video-On-Demand platforms?
Video-on-demand providers can largely benefit from sharing their expertise and knowledge or streaming movies and series to viewers. Let’s look at the benefits of VOD platforms in detail.
#1 Brand awareness
Brand awareness is valuable for any business. By making the brand recognizable and linking it to positive perceptions, businesses boost the appreciation of their products and loyalty of their customers.
A VOD platform is a tool for getting in touch with your viewers and steering the perception of your brand in the right direction. You can define what associations you want your company to bring up and instill them with the help of VOD streaming.
A high level of brand awareness is likely to generate more sales and allow you to gain additional market share. For brand awareness of your VOD platform to be productive, your viewers should be able to contact you seamlessly.
#2 Monetization
VOD platform providers generate revenue by streaming their content to viewers. The three most common monetization models for VOD platform solutions are:
- Advertisements (AVOD)
- Subscriptions (SVOD)
- Pay-per-view (TVOD)
A business can select one model or combine several using a hybrid approach. For example, offer users two payment options – purchase a subscription or pay for one video at a time. It is a combination of SVOD and TVOD models, but what works best may be different for your company.
#3 Online community
If you interact effectively with viewers and share valuable content, you cultivate their loyalty to your company and turn them into regular users.
A VOD platform allows you to build stronger relationships with your viewers. Use this chance to communicate with them in comments and videos, listen to their feedback, and reply to their questions about your products. People appreciate when they are heard.
Build trust with your audience, and they will support your brand. In other words, you will create an online community around your household name which, in turn, can help you boost your brand awareness by word of mouth.
#4 Convenience for viewers
Video content enthusiasts appreciate VOD platforms because they are convenient to use. The cable or satellite TV cord-cutting tendency has begun because more flexible online streaming services appeared.
Viewers only need an internet connection and a compatible device to watch their favorite content. They no longer need to wait for a video to air and can decide for themselves what they would like to watch and when. Plenty of video-on-demand streaming platforms are available online for free or on a subscription basis, which is often less expensive than cable.
How to build a VOD platform in 4 Steps
1. Identify your audience
Identifying your target audience is an essential part of any business. Understanding who your viewers are and what they like can help you focus your marketing efforts and budget on actions that will bring you profit. This way, you spare your business from unnecessary expenses.
Identify what channels your target audience potentially uses and concentrate on them.
Start by asking yourself the following questions about your product – what problems it solves, what it gives to your viewers, and what kind of people have such problems. Finally, think about a specific advantage over your competitors you can provide.
After you have defined what type of customer can benefit from your service or product, launch your marketing campaigns and target potential viewers.
The more you know about your target audience, the more effective your business is.
2. Plan and produce content
Before you build a VOD platform, it is important to create a content strategy. You need to set specific and realistic goals.
Decide on what videos you are going to create and write scripts for them. Calculate how much time and money it will cost, consider whether it is wiser to produce them in-house or hire a team of professionals. Remember to list what equipment you need to launch your VOD platform.
Having a solid understanding of what you need and are going to do is key before launching a VOD platform. An ideal scenario would be to have a batch of pre-made videos so that your service has a selection to offer from the start.
3. Build a VOD platform
Before you develop your video streaming platform, consider your budget. It will define what way you should go: build a VOD platform from scratch on your own or find a ready-made solution such as the ones offered by Setplex.
If you are going to create a VOD platform on your own, think it well through in advance. Hiring specialists, designing, and developing is likely to be costly and time-consuming. A big advantage is that you will have a product that takes into account absolutely all your requirements.
Be prepared to put a lot of effort into security if you create a video-on-demand platform from square one. Whether you stream your content or obtain licensed videos, you need to protect the product from unauthorized access.
If you buy a VOD solution developed by a company that specializes in it like Setplex, you are much less likely to run into security problems. VOD solution developers carefully consider possible troubles that a content provider may face and take precaution measures.
Buying a complete solution is cost-effective and time-saving. Moreover, a VOD platform provider can give you a helping hand with launching, customizing and running your platform.
4. Select the right monetization strategy
Choosing the right monetization strategy is crucial to your VOD business. It will define how your viewers will access videos. Here’s a quick overview of your options.
- Advertisement-based VOD (AVOD) – consumers watch your content without a fee. You generate money through ads that run during the video playback.
- Subscription-based VOD (SVOD) – viewers purchase a monthly or yearly subscription and get access to your content for the paid period.
- Transactional-based VOD (TVOD) – customers pay for a video they want to watch now or in the near future.
You can also combine several models and offer different payment options to viewers. Let viewers buy a subscription and watch videos without ads, or watch videos with ads but free of charge.
Setplex is the Only End-to-End Platform in the Market for Building OTT Video Streaming Business
#1 White-label VOD platform
Setplex helps content creators to customize every part of the platform interface and easily match their branding guidelines.
The Setplex R&D team provides industry standards and customization guidelines to make the interfaces of their clients’ platforms outstanding and easy to navigate. With NORA middleware, our customers’ users will be satisfied with every single experience.
Customize the following:
- Main menu – Adjust all parts of the main menu, including background and icons, to your brand design.
- Apps – Customize the design of all platforms that your clients can watch videos on, including Smart TVs, mobiles, and tablets.
- EPG – Change the colors of EPG tabs and background interface.
- Live TV – Customize the placement, colors and logo on the info bar.
- On-demand – Modify the colors, imagery, movie cover demonstration, and many more.
- Channel list – Switch the colors of EPG tabs, placement, logos and background interface.
#2 End-to-end solution
We offer a flexible end-to-end solution for video streaming which includes:
- IPTV/OTT Middleware
- OTT Applications
- Encoder/Transcoder
- CDN Solutions
- Security (DRM)
- Ad Monetization
- API Integration
- OTT Analytics
We provide all the components to build a complete IPTV solution, including on-prem or on-cloud deployments.
#3 AVOD, SVOD, and TVOD monetization models
Use any of our built-in monetization models or combine several of them. Monetize your live TV channels and video-on-demand content with dynamic and accurately targeted video ads using the SSAI technology. We provide AI to detect ads/breaks, insert SCTE markers and stitch-in ads.
We develop a solution to help you generate income and grow your business.
#4 Security/DRM
Our solution has its own security. The DRM (Digital Rights Management) will protect your videos from piracy, unauthorized access and authentication, including Widevine, FairPlay, and PlayReady. Furthermore, our partners’ CDNs will secure your VOD platform from DDoS attacks.
#5 Recommendation engine
Setplex has invested heavily in a recommendation engine, leveraging AI (Artificial Intelligence) and ML (Machine Learning) to provide consumers with best in class content suggestions and discovery to increase user engagement, which ensures an extended watch time and reduces churn.
#6 Customer support
Setplex provides content creators from all kinds of professional fields with an end-to-end solution for video streaming. We invest largely in creating and enhancing our VOD solution. Our developers constantly work on implementing new features and boosting the performance of the platform.
Visit Setplex quote page and give us details about your project. One of our sales executives will give you a call to discuss options and pricing for your platform.
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