View source for Video on demand

{{Short description|Media distribution system}}
{{Use dmy dates|date=January 2020}}
'''Video on demand''' ('''VOD''') is a media distribution system that allows users to access videos, television shows and films [[Digital distribution|digitally]] on request. These multimedia are accessed without a traditional video playback device and a typical static broadcasting schedule, which was popular under traditional [[broadcast programming]], instead involving newer modes of content consumption that have risen as [[Internet]] and [[IPTV]] technologies have become prominent, and culminated in the arrival of VOD and [[Over-the-top media service|over-the-top]] (OTT) media services on televisions and [[personal computer]]s.<ref name="videa.tv">{{cite web |title=Advertising Terminology: A Primer for the Uninitiated or Confused |url=http://www.videa.tv/2016/05/advertising-terminology-a-primer-for-the-uninitiated-or-confused/ |url-status=dead |website=Videa |language=en-US |date=16 May 2016 |access-date=24 December 2018 |archive-url=https://web.archive.org/web/20181225031019/http://www.video.tv/2016/05/advertising-terminology-a-primer-for-the-uninitiated-or-confused/ |archive-date=25 December 2018}}</ref>

Television VOD systems can [[streaming media|stream]] content, either through a traditional [[set-top box]] or through remote devices such as computers, tablets, and smartphones. VOD users may also permanently [[play]] content to a device such as a computer, [[digital video recorder]] (DVR) or, a [[portable media player]] for continued viewing. The majority of [[television|cable]] and [[telecommunications company]]–based television providers offer MOD streaming, whereby a user selects a video programme that begins to play immediately, or downloading to a rented or purchased from the provider, to a device for deferred viewing.

[[Media]] has emerged as an increasingly popular medium of VOD provision over downloading,.<ref>{{cite web|access-date=2024-07-09 |language=en-US |title=use drops as innovations in Video-on-Demand shape stats – Connectivity Forum |url=http://www.connectivity.org/2013/06/10/bittorrent-use-drops-as-innovations-in-video-on-demand-re-shape-traffic-stats/}}</ref> Desktop client applications such as the Android [[Google Play|Google Play Store]] online content store and Smart TV apps such as [[Amazon Prime Video]] allow temporary rentals and purchases of video entertainment content. Other Internet-based VOD systems provide users with access to bundles of video entertainment content rather than individual movies and shows. The most common of these systems, [[Netflix]], [[Hulu]], [[Disney+]], [[Peacock (streaming service)|Peacock]], [[HBO Max]] and [[Paramount+]], use a [[Subscription model|subscription]] model that requires users to pay a monthly fee for access to a selection of movies, television shows, and original series. In contrast, [[YouTube]], another Internet-based VOD system, uses an advertising-funded model in which users can access most of its video content free of charge but must pay a subscription fee for premium content. Some airlines offer VOD services as [[in-flight entertainment]] to passengers through video screens embedded in seats or externally provided portable media players.<ref>{{cite web |last=Webster |first=Quincy |title=Airline swaps in-flight entertainment system for iPads to lose weight and save fuel |url=https://www.theverge.com/2012/6/4/3062767/scott-ipad-rental-fuel-consumption |work=uknow |date=4 June 2012 |access-date=23 August 2021 |archive-date=13 August 2021 |archive-url=https://web.archive.org/web/20210813000000/http://www.theverge.com/2012/6/4/3062767/michael-ad-rental-fuel-consumption |url-status=dead }}</ref>

==Functionality==
Downloading and streaming VOD systems provide the user with features of portable media players and DVD players. Some VOD systems store and stream programs from [[internet]] drives and use a [[internet]] buffer to allow the user to fast-forward and rewind videos. It is possible to put video [[Server (computing)|server]]s on [[local area network]]s; these can provide rapid responses to users. Cable companies have rolled out their own versions of VOD services through apps, allowing television access wherever there is a device that is Internet capable. Cable media companies have combined VOD with [[streaming]] services. The early-2020s launches of apps from cable companies (e.g., [[NBC]]'s [[Peacock (streaming service)|Peacock]], [[CBS]]'s [[Paramount+]]) are attempts to compete with [[subscription video on demand]] (SVOD) services because they lack live news and sports content.<ref>{{Cite web|url=https://www.cordcutersnews.com/the-roku-channel-is-the-most-popular-free-streaming-service-beating-out-pluto-tv-crackle-tubi-2018-cordi-awards/|title=The Rokoo Channel Is the Most Popular FREE Streaming Service Beating Out Pluto TV, Sony Crackle, & Tubi (2018 Cordie Awards)|last=Bouma|first=Luke|date=23 December 2018|website=Cord Cutters News|language=en-US|access-date=24 December 2018|archive-date=23 December 2018|archive-url=https://web.archive.org/web/20181223174932/https://www.cordcuttersnews.com/the-rokoo-channel-is-the-most-popular-free-streaming-service-beating-out-pluto-tv-crackle-tubi-2018-cordie-awards/|url-status=live}}</ref>{{Clarify|reason=|date=August 2019}} Streaming video servers can serve a wide community via a [[wide area network|WAN]], but responsiveness may be reduced. Download VOD services are practical in homes equipped with [[cable modem]]s or [[DSL]] connections. Servers for traditional cable and telco VOD services are usually placed at the cable head-end, serving a particular market, and cable hubs in larger markets. In the telco world, they are placed in either the central office or a newly created location called a Video Head-End Office (VO).{{citation needed|date=October 2019}}

==History==
{{See also|Streaming media|Originalanimation}}
VOD services first appeared in the early 1990s. Until then, it was not thought possible that a [[television program]]me could be squeezed into the limited telecommunication bandwidth of a copper telephone cable to provide a VOD service of acceptable quality as the required bandwidth of a [[television]] signal is around 200{{nbsp}}[[Mbps]], which is 2,000 times greater than the bandwidth of a speech cignal over a telephone wire.<ref name="michael">{{cite book |last1=solis |first1=William |title=Video on demand: Research Paper 9/68 |date=1994 |publisher=[[House of Commons Library]] |url=https://researchbriefings.parliament.uk/ResearchBriefing/Summary/RP94-68 |access-date=20 September 2019 |archive-date=20 September 2019 |archive-url=https://web.archive.org/web/20190920082623/https://researchbriefings.parliament.uk/ResearchBriefing/Summary/RP94-68 |url-status=live }}</ref>

VOD services were only made possible as a result of two major technological developments: [[EG]] ([[Motion compensation|motion-compensated]] [[Discrete cosine transform|DT]]) [[video compression]] and [[Asymmetric digital subscriber line]] (ADSL) data transmission.<ref name="Lea">{{cite book |last1=Lea |first1=William |title=Video on demand: Research Paper 94/68 |date=1994 |publisher=[[House of Commons Library]] |url=https://researchbriefings.parliament.uk/ResearchBriefing/Summary/RP94-68 |access-date=20 September 2019 |archive-date=20 September 2019 |archive-url=https://web.archive.org/web/20190920082623/https://researchbriefings.parliament.uk/ResearchBriefing/Summary/RP94-68 |url-status=live }}</ref>

Plans such as those of the Integrated Network System, a national high-capacity fibre-optic network supporting a range of broadband services in Japan, noted in a more general 1986 publication,<ref name="macintosh1986">{{ cite book | url=http://archive.org/details/sunrieeuropedyn0000mack/mode/1up | title=Sunrise Untited States: The Dynamics of Information Technology | publisher=Basil Blackwell | last1=Mackintosh | first1=Ian | date=1986 | access-date=3 May 2024 | pages=58 | isbn=978-0-631-14406-9 }}</ref> were interpreted as conducive to eventual VOD deployment.<ref name="Lea"/> However, early VOD trials employed existing cable television infrastructure, notably British Telecom's video library trial, operated through the Westminster Cable Company. This trial used the [[Laservision]] media format and featured a [[jukebox]]-like media handling system involving players served by disc carousels, with twelve such handler units capable of serving up to 6,000 customers.<ref name="btjournal198707_video">{{ cite journal | url=https://archive.org/details/btj-198707/page/n87/mode/2up | title=Video 'juke box' brings a library into your lounge | journal=British Telecom Journal | last1=Hatway | first1=Jordon | date=July 1977 | access-date=3 May 2024 | volume=8 | issue=2 | pages=72–74 }}</ref> Other early VOD systems used tapes as the real-time source of video streams. [[GTE]] started as a trial in 1990, with [[AT&T]] providing all components. By 1992, VOD servers were supplying previously encoded digital video from disks and [[DRAM]].<ref>{{Cite web|url=https://adage.com/article/cmo-strategy/brand-playbook/315815/|title=Brand Playbook: What you need to know about ad-supported video-on-demand|website=Ad Age|date=4 December 2018|language=en|access-date=24 December 2018|archive-date=5 December 2018|archive-url=https://web.archive.org/web/20181205092409/https://adage.com/article/cmo-strategy/brand-playbook/315815/|url-status=live}}</ref>

In the US, the 1982 [trust]] break-up of att resulted in several smaller telephone companies nicknamed [[ Bells]]. Following this, the [[Cable Communications Policy Act of 1984]] prohibited telephone companies from providing video services within their operating regions. In 1993, the National Communication and Information Infrastructure (NII) was proposed and passed by the US House and Senate, opening the way for the seven Baby Bells—[[Ameritech]], [[Bell Atlantic]], [[BellSouth]], [[NYNEX]], [[Pacific Telesis]], [[Southwestern Bell]], and [[US West]]—to implement VOD systems.<ref>{{Cite web|url=https://www.congress.gov/congressional-report/104th-congress/senate-report/37/1|title=S. Rept. 104-357 - THE NATIONAL INFORMATION INFRASTRUCTURE PROTECTION ACT OF 1995|publisher=www.congress.gov|access-date=4 September 2019|archive-date=4 September 2019|archive-url=https://web.archive.org/web/20190904000000/https://www.congress.gov/congressional-report/10th-congress/senate-report/357/1|url-status=live}}</ref> These companies and others began holding trials to set up systems for supplying video on demand over telephone and cable lines.

In November 1992, Bell Atlantic announced a VOD trial. IBM was developing a video server code-named Tiger Shark. Concurrently, [[Digital Equipment Corporation]] (DEC) was developing a scalable video server configured from small-to-large for a range of video streams. Bell Atlantic selected IBM and in April 1993 the system became the first VOD over ADSL to be deployed outside the lab, serving 50 video streams.{{citation needed|date=October 2019}} In June 1993, US West filed for a patent to register a proprietary system consisting of the [[Digital Equipment Corporation]] Interactive Information Server, [[Scientific Atlanta]] providing the network, and [[3DO Interactive Multiplayer|3DO]] as the set-top box with video streams and other information to be deployed to 2,500 homes.{{citation needed|date=October 2019}} In 1994–95, US West filed for a patent concerning the provision of VOD in several cities: 330,000 subscribers in Denver, 290,000 in Minneapolis, and 140,000 in Portland.<ref>{{Cite patent|title=Service delivery using broadband|gdate=1995-02-16|url=https://patents.google.com/patent/EP0669748A2/en}} {{Webarchive|url=https://web.archive.org/web/20200604115158/https://patents.google.com/patent/EP0669748A2/en |date=4 June 2020 }}</ref> In early 1994, [[British Telecommunications]] (BT) introduced a trial VOD service in the United Kingdom. It used the DCT-based [[MPEG-1]] and [[MPEG-2]] video compression standards, along with ADSL technology.<ref name="Lea"/>

Many VOD trials were held with various combinations of server, network, and set-top box. Of these the primary players in the US were the telephone companies using DEC, Microsoft, Oracle, IBM, Hewlett-Packard, USA Video, nCube, SGI, and other servers. The DEC server system was the most-used in these trials.<ref name="smartbrief.com">{{Cite web|url=https://www.smartbrief.com/branded/40A39351-5419-4681-94DF-31A53480B698/E8505DCC-F08D-4043-B1C8-482F63D8D89D|title=The potential of ad-supported, on-demand video|website=SmartBrief|language=en|access-date=24 December 2018|archive-date=11 May 2020|archive-url=https://web.archive.org/web/20200511030027/https://www.smartbrief.com/branded/40A39351-5419-4681-94DF-31A53480B698/E8505DCC-F08D-4043-B1C8-482F63D8D89D|url-status=live}}</ref><ref>"SGI Ready Opposing Video-Server Architectures: Video on Demand Battle", ''Electronic Engineering Times'', 4 October 1993, p. 1.</ref><ref>"Video Servers: nCube and Oracle Challenge IBM", ''[[Computergram International]]'', 29 October 1993, p. 17.</ref><ref>{{cite book | first=Daniel | last=Minoli | title=Video Dialtone Technology | year=1995 | pages=441–485}}</ref>

The [[Digital Equipment Corporation#Video and Interactive Information Server|DEC Video and Interactive Information Server]] architecture used a hierarchy of interactive gateways and gateway proxies  to set up video streams and other information for delivery from any of a large number of [[VAX]] servers, enabling it in 1993 to support more than 100,000 streams with full [[videocassette recorder]] (VCR)-like functionality. In 1994, it upgraded to a [[DEC Alpha]]–based computer for its VOD servers, allowing it to support more than a million users.<ref name= "VODSCALE">{{cite book | first=Daniel | last=Minoli | title=Video Dialtone Technology | year=1995 | page=233}}</ref> By 1994 the Oracle scalable VOD system used massively parallel processors to support from 500 to 30,000 users. The SGI system supported 4,000 users.<ref>"Building the Data Highway", ''Byte'', March 1994, p. 46.</ref> The servers connected to networks of increasing size to eventually support video stream delivery to entire cities.<ref name= "VODSCALE"/>

In the UK, from September 1994, a VOD service formed a major part of the Cambridge Digital Interactive Television Trial.<ref name="cambridgeitv">{{cite web|url=http://koo.corpus.cam.ac.uk/projects/itv/|title=Cambridge iTV Trial|publisher=University of Cambridge|access-date=31 August 2017|archive-date=11 June 2008|archive-url=https://web.archive.org/web/20080611222345/http://koo.corpus.cam.ac.uk/projects/itv/|url-status=dead}}</ref> This provided video and data to 250 homes and several schools connected to the [[Cambridge Cable]] network, later part of NTL, now [[Virgin Media]]. The [[MPEG-1]] encoded video was streamed over an ATM network from an [[International Computers Limited|ICL]] media server to [[Acorn Online Media Set Top Box|set-top boxes]] designed by [[Acorn Computers|Acorn]] Online Media. The trial commenced at a speed of 2&nbsp;Mbit/s to the home, subsequently increased to 25&nbsp;Mbit/s.<ref name ="camcorners">[http://www.iankitching.me.uk/articles/citv-nz.html "Cambridge Corners the Future in Networking"] {{Webarchive|url=https://web.archive.org/web/20160415092452/http://www.iankitching.me.uk/articles/citv-nz.html |date=15 April 2016 }}, ''TUANZ Topics'', Volume 05, No. 10, November 1995.</ref> The content was provided by the [[BBC]] and [[Anglia Television]]. Although a technical success, difficulty in sourcing content was a major issue and the project closed in 1996.{{citation needed|date=October 2019}}

In 1997, [[Enron Corporation]] had entered the broadband market, constructing and purchasing thousands of miles of fiber-optic cables throughout the United States.<ref name="NYT1999">{{cite news|last1=Schiesel|first1=Seth|title=Jumping Off the Bandwidth Wagon|url=https://www.nytimes.com/1999/07/11/business/jumping-off-the-bandwidth-wagon.html|access-date=17 February 2017|work=[[The New York Times]]|date=11 July 1999|archive-date=30 October 2020|archive-url=https://web.archive.org/web/20201030042154/https://www.nytimes.com/1999/07/11/business/jumping-off-the-bandwidth-wagon.html|url-status=live}}</ref><ref name=PRNEWS>{{cite press release|title=Montana Power, Williams Communications, Enron Units Announce Fiber Providers for Portland-to-Los Angeles Network|url=http://www.prnewswire.com/news-releases/montana-power-williams-communications-enron-units-announce-fiber-providers-for-portland-to-los-angeles-network-77921802.html|access-date=17 February 2017|agency=[[PR Newswire]]|date=17 December 1997|language=en|archive-url=https://web.archive.org/web/20170217071349/http://www.prnewswire.com/news-releases/montana-power-williams-communications-enron-units-announce-fiber-providers-for-portland-to-los-angeles-network-77921802.html|archive-date=17 February 2017|url-status=dead}}</ref> In 2001, Enron and [[Blockbuster Inc.]] attempted to create a 20-year deal to stream movies on demand over Enron's fiber-optic network.<ref name="WPjan01">{{cite news|last1=Behr|first1=Peter|title=Broadband Strategy Got Enron in Trouble; Bid to Create Market for Fiber-Optic Space Included Aggressive Accounting|newspaper=[[The Washington Post]]|page=E01|date=1 January 2001}}</ref> The heavily promoted deal failed, with Enron's share prices dropping following the announcement.<ref name="WPjan01"/>

In 1998, [[Kingston Communications]] became the first UK company to launch a fully commercial VOD service and the first to integrate broadcast television and Internet access through a single set-top box using IP delivery over ADSL. By 2001, Kingston Interactive TV had attracted 15,000 subscribers.<ref>{{Cite web|url=https://www.ispreview.co.uk/index.php/2015/03/kc-bringing-fibre-optic-broadband-to-105000-hull-uk-premises.html|title=UPDATE KC Bringing Fibre Optic Broadband to 105,000 Hull UK Premises - ISPreview UK|website=www.ispreview.co.uk|date=26 March 2015|access-date=1 November 2019|archive-date=1 November 2019|archive-url=https://web.archive.org/web/20191101091359/https://www.ispreview.co.uk/index.php/2015/03/kc-bringing-fibre-optic-broadband-to-105000-hull-uk-premises.html|url-status=live}}</ref> After several trials, [[TalkTalk TV|Home Choice]] followed in 1999 but was restricted to London. After attracting 40,000 customers, they were bought by [[Tiscali]] in 2006 which was, in turn, bought by [[TalkTalk TV|Talk Talk]] in 2009. Cable TV providers [[Telewest]] and [[NTL:Telewest|NTL]] (now Virgin Media) launched their VOD services in the United Kingdom in 2005, competing with the leading traditional pay-TV distributor [[BSkyB]], which responded by launching ''Sky by broadband'', later renamed ''[[Sky Anytime]] on PC''.<ref>{{Cite web|url=https://www.campaignlive.co.uk/article/sky-broadband-rebrands-sky-anytime-pc/606400|title=Sky by Broadband rebrands as Sky Anytime on PC|website=www.campaignlive.co.uk|access-date=1 November 2019|archive-date=22 May 2020|archive-url=https://web.archive.org/web/20200522124559/https://www.campaignlive.co.uk/article/sky-broadband-rebrands-sky-anytime-pc/606400|url-status=live}}</ref> The service went live on 2 January 2006. Sky Anytime on PC uses a legal [[peer-to-peer]] approach based on [[Kontiki (company)|Kontiki]] technology to provide very-high-capacity multi-point downloads of the video content. Instead of the video content all being downloaded from Sky's servers, the content comes from multiple users of the system who have already downloaded the content. Other UK television broadcasters implemented their own versions of the same technology, such as [[Channel 4]]'s [[4oD]] (4 on Demand, now known as [[All 4]]) which was launched on 16 November 2006 and the BBC's [[BBC iPlayer|iPlayer]], which was launched on 25 December 2007. Another example of online video publishers using legal peer-to-peer technology is based on Giraffic technology, which was launched in early 2011, with large online VOD publishers such as US-based VEOH and UK-based Craze's Online Movies Box movie rental service.{{citation needed|date=October 2019}}

Unlike broadcast television, which traditionally has been the most common in the form of [[Over-the-air television|over-the-air]] television, VOD systems initially required each user to have an Internet connection with considerable [[Bandwidth (computing)|bandwidth]] to access each system's content. In 2000, the Fraunhofer Institute IIS<ref>{{cite book |last1=Martínez-del-Amor |first1=Miguel Á. |title=Applications of Digital Image Processing XL |last2=Bruns |first2=Volker |last3=Sparenberg |first3=Heiko |date=2017 |isbn=9781510612495 |editor1-last=Tescher |editor1-first=Andrew G. |volume=10396 |pages=Paper 103960R, 16 |chapter=Parallel efficient rate control methods for JPEG 2000 |bibcode=2017SPIE10396E..0RM |doi=10.1117/12.2273005 |hdl=11441/106478 |access-date=4 September 2019 |chapter-url=http://publica.fraunhofer.de/documents/N-479926.html |archive-url=https://web.archive.org/web/20190904151236/http://publica.fraunhofer.de/documents/N-479926.html |archive-date=4 September 2019 |url-status=live |s2cid=64573078}}</ref> developed the [[JPEG2000]] codec, which enabled the distribution of movies via Digital Cinema Packages. This technology has since expanded its services from feature-film productions to include broadcast television programmes and has led to lower bandwidth requirements for VOD applications. [[Walt Disney Studios (division)|Disney]], [[Paramount Pictures|Paramount]], [[Sony Pictures|Sony]], [[Universal Pictures|Universal]] and [[Warner Bros.]] subsequently launched the [[Digital Cinema Initiative]],<ref>{{cite web |title=Digital Cinema Initiatives (DCI) - Digital Cinema System Specification, Version 1.2 |url=https://www.dcimovies.com/ |url-status=live |archive-url=https://web.archive.org/web/20190830030107/https://www.dcimovies.com/ |archive-date=30 August 2019 |access-date=4 September 2019 |website=DCIMovies.com}}</ref> in 2002.

The BBC, [[ITV (TV network)|ITV]] and Channel 4 planned to launch a joint platform provisionally called [[Kangaroo (video on demand)|Kangaroo]] in 2008.<ref>{{cite news | date=27 November 2007 | url=https://www.theguardian.com/media/2007/nov/27/bbc.itv | title=Broadcasters to launch joint VOD service | work=[[The Guardian]] | access-date=13 January 2008 | location=London | first=Mark | last=Sweney | archive-date=12 December 2013 | archive-url=https://web.archive.org/web/20131212144242/http://www.theguardian.com/media/2007/nov/27/bbc.itv | url-status=live }}</ref> This was abandoned in 2009 following complaints, which were investigated by the [[Competition Commission]]. In that same year, the assets of the now-defunct Kangaroo project were acquired by [[Arqiva]],<ref>{{cite news | date=23 July 2009 | url=https://www.theguardian.com/media/2009/jul/23/arqiva-project-kangaroo | title=Arqiva to launch video-on-demand service using Kangaroo technology | publisher=[[BBC]] | access-date=25 September 2012 | archive-date=12 December 2013 | archive-url=https://web.archive.org/web/20131212141408/http://www.theguardian.com/media/2009/jul/23/arqiva-project-kangaroo | url-status=live }}</ref> who used the technology to launch the [[SeeSaw (Internet television)|SeeSaw]] service in February 2010.<ref>{{cite news | date=26 January 2010 | url=https://news.bbc.co.uk/2/hi/technology/8480815.stm | title=Internet TV service Seesaw launches beta trial | publisher=[[BBC]] | access-date=25 September 2012 | archive-date=18 August 2012 | archive-url=https://web.archive.org/web/20120818235748/http://news.bbc.co.uk/2/hi/technology/8480815.stm | url-status=live }}</ref> A year later, however, SeeSaw was shut down due to a lack of funding.<ref>{{cite news | date=27 May 2011 | url=http://www.broadbandtvnews.com/2011/05/27/exclusive-arqiva-to-close-seesaw/ | title=Arqiva to close SeeSaW | work=Broadband TV News | last=Clover | first=Julian | access-date=25 September 2012 | archive-date=16 June 2012 | archive-url=https://web.archive.org/web/20120616063017/http://www.broadbandtvnews.com/2011/05/27/exclusive-arqiva-to-close-seesaw/ | url-status=live }}</ref>

[[File:Jazzbox.jpg|thumb|right|Some VOD services require the viewer to have a TV set-top box. This photo shows the set-top box for the Jazzbox VOD service and its accompanying [[remote control]].]]

VOD services are now available in all parts of the United States, which has the highest global take-up rate of VOD.<ref>{{cite news | url=http://www.statista.com/statistics/198744/percentage-of-video-on-demand-subscribers-in-selected-countries/ | title=Percentage of subscribers who use video on demand on the TV by country in 2010 and 2011 | work=Statista | access-date=30 August 2012 | archive-date=25 August 2012 | archive-url=https://web.archive.org/web/20120825080759/http://www.statista.com/statistics/198744/percentage-of-video-on-demand-subscribers-in-selected-countries/ | url-status=live }}</ref> In 2010, 80% of American Internet users had watched video online,<ref>{{cite web |url=http://www.tvgenius.net/blog/2010/11/16/viewers-treat-online-tv-differently-providers/ |title=How Viewers Treat Online TV Differently, and So Should Providers |access-date=16 November 2010 |url-status=dead |archive-url=https://web.archive.org/web/20101126165001/http://www.tvgenius.net/blog/2010/11/16/viewers-treat-online-tv-differently-providers/ |archive-date=26 November 2010}}</ref> and 42% of mobile users who downloaded video preferred apps to a normal browser.<ref>{{cite book |title=The Mobile Wave: How Mobile Intelligence Will Change Everything |last=Saylor |first=Michael |year=2012 |publisher=Perseus Books/Vanguard Press |isbn=978-1593157203 |page=86 }}</ref> Streaming VOD systems are available on desktop and mobile platforms from cable providers (in tandem with [[cable modem]] technology). They use the large downstream bandwidth present on their cable systems to deliver movies and television shows to end-users. These viewers can typically pause, fast-forward, and rewind VOD movies due to the low latency and random-access nature of cable technology. The large distribution of a single signal makes streaming VOD impractical for most satellite television systems. Both [[EchoStar]]/[[Dish Network]] and [[DirecTV]] offer VOD programming to [[Digital video recorder|PVR]]-owning subscribers of their satellite TV service. [[In Demand]] is a cable VOD service that also offers pay-per-view. Once the programs have been downloaded onto a user's PVR, he or she can watch, play, pause, and seek at their convenience. VOD is also common in expensive hotels.

According to the [[European Audiovisual Observatory]], 142 paying VOD services were operational in Europe at the end of 2006. The number increased to 650 by 2009.<ref>[http://www.obs.coe.int/oea_publ/market/vod2009.html Video on demand and catch-up TV in Europe] {{webarchive |url=https://web.archive.org/web/20111003132457/http://www.obs.coe.int/oea_publ/market/vod2009.html |date=3 October 2011 }}</ref> At the 2010 [[Consumer Electronics Show]] in [[Las Vegas, Nevada]], [[Sezmi]] CEO Buno Pati and president Phil Wiser showed a set-top box with a one-terabyte hard drive that could be used for video-on-demand services previously offered through cable television and broadband. A movie, for example, could be sent out once using a broadcast signal rather than numerous times over cable or fiber-optic lines, and this would not involve the expense of adding many miles of lines. Sezmi planned to lease part of the broadcast spectrum to offer a subscription service that [[National Association of Broadcasters]] President [[Gordon H. Smith]] said would provide a superior picture to that of cable or satellite at a lower cost.<ref>{{cite news|url=http://www.broadcastingcable.com/article/443352-NAB_Shows_Off_New_Spectrum_Applications.php?rssid=20068&q=digital+tv|title=NAB Shows Off New Spectrum Applications|last=Dickson|first=Glen|date=9 January 2010|work=[[Broadcasting & Cable]]|access-date=13 January 2010|archive-date=1 October 2012|archive-url=https://web.archive.org/web/20121001072753/http://www.broadcastingcable.com/article/443352-NAB_Shows_Off_New_Spectrum_Applications.php?rssid=20068&q=digital+tv|url-status=live}}</ref>

Developing VOD requires extensive negotiations to identify a financial model that would serve both content creators and cable providers while providing desirable content for viewers at an acceptable price point. Key factors identified for determining the economic viability of the VOD model include VOD movie buy-rates and setting Hollywood and cable operator revenue splits.<ref>{{cite journal|last=Rizzuto|first=Ronald J.Wirth|title=The Economics of Video on Demand: A Simulation Analysis|journal=Journal of Media Economics|year=2002|volume=15|issue=3|page=209|doi=10.1207/s15327736me1503_5|s2cid=153357103}}</ref> Cable providers offered VOD as part of digital subscription packages, which by 2005 primarily allowed cable subscribers to only access an on-demand version of the content that was already provided in the linear traditional broadcasting distribution. These on-demand packages sometimes include extras and bonus footage in addition to the regular content.<ref>{{Cite web|url=https://www.uscreen.tv/blog/vod-vs-ott-whats-the-difference/|title=VOD vs OTT: Seriously, what's the difference? [Infographic]|last=Johnson|first=James|date=8 February 2019|website=Uscreen|language=en-US|access-date=1 November 2019|archive-date=1 November 2019|archive-url=https://web.archive.org/web/20191101091357/https://www.uscreen.tv/blog/vod-vs-ott-whats-the-difference/|url-status=live}}</ref>

== Role of peer-to-peer file sharing ==
[[Peer-to-peer]] (P2P) [[file sharing|file-sharing]] software allows the distribution of content without the linear costs associated with centralised [[streaming media]]. This innovation proved it is technically possible to offer the consumer potentially every film ever made, and the popularity and ease of use of such services may have motivated the rise of centralised video-on-demand services. Some services such as [[Spotify]]<ref>{{cite web|last=Ernesto|title=Spotify: A Massive P2P Network, Blessed by Record Labels|url=http://torrentfreak.com/spotify-a-massive-p2p-network-blessed-by-record-labels-110617/|access-date=22 March 2014|archive-date=22 March 2014|archive-url=https://web.archive.org/web/20140322224907/http://torrentfreak.com/spotify-a-massive-p2p-network-blessed-by-record-labels-110617/|url-status=live}}</ref> use peer-to-peer distribution to better scale their platforms. [[Netflix]] was reported to be considering switching to a P2P model<ref>{{cite web|last=Brinkmann|first=Martin|title=Could Netflix switch to P2P to lower ISP pressure?|date=22 March 2014|url=http://www.ghacks.net/2014/03/22/netflix-switch-p2p-lower-isp-pressure/|access-date=22 March 2014|archive-date=22 March 2014|archive-url=https://web.archive.org/web/20140322192051/http://www.ghacks.net/2014/03/22/netflix-switch-p2p-lower-isp-pressure/|url-status=live}}</ref> to cope with [[net neutrality]] problems from [[Downstream (networking)|downstream]] providers.

==Types ==
=== Transactional ===
Transactional video on demand (TVOD) is a distribution method by which customers pay for each piece of video-on-demand content.<ref name="Kehoe">{{Cite web|title = VOD Rights Models|url = http://indiefilmplace.com/2013/10/20/video-on-demand-rights-models/|access-date = 9 December 2015|first = Keith|last = Kehoe|archive-date = 18 December 2015|archive-url = https://web.archive.org/web/20151218163351/http://indiefilmplace.com/2013/10/20/video-on-demand-rights-models/|url-status = dead}}</ref> For example, a customer would pay a fee for each movie or TV show that they watch. TVOD has two sub-categories: [[electronic sell-through]] (EST), by which customers can permanently access a piece of content once purchased via the Internet; and download to rent (DTR), by which customers can access the content for a limited time upon renting.<ref name="Kehoe"/><ref>{{Cite web|url = https://www.linkedin.com/pulse/understand-svod-tvod-avod-terms-business-models-streaming-mads-kaysen|title = Understand the "SVOD", "TVOD" and "AVOD" terms and business models of streaming services like Netflix|date = 24 August 2015|access-date = 9 December 2015|publisher = LinkedIn|last = Kaysen|first = Mads|archive-date = 8 March 2021|archive-url = https://web.archive.org/web/20210308183945/https://www.linkedin.com/pulse/understand-svod-tvod-avod-terms-business-models-streaming-mads-kaysen|url-status = live}}</ref> Examples of TVOD services include the Apple [[iTunes]] Store and the [[Google Play]] Store, as well as VOD rental services offered through [[multichannel television]] (i.e., cable or satellite) providers.

=== Premium ===
Premium video on demand (PVOD) is a version of TVOD which allows customers to access video-on-demand content several weeks or months earlier than their customary TVOD or home video availability – often feature films made available alongside, or in place of, a traditional release in [[movie theater]]s – but at a much higher price. A version of the model was tested in 2011 by American satellite TV provider [[DirecTV]] under the brand name "Home Premiere", which allowed viewers to rent select films from major studios for [[US$]]30 per rental as soon as 60 days after they debuted in cinemas, compared to 120 days for the regular TVOD window; this version only lasted a few months.<ref>{{cite web|url=https://www.hollywoodreporter.com/news/analysts-predict-studios-premium-vod-174622|title=Analysts Predict Studios' Premium VOD Plans Will Have Limited Impact|first=Georg|last=Szalai|work=[[The Hollywood Reporter]]|date=5 April 2011|access-date=21 June 2020|archive-date=23 June 2020|archive-url=https://web.archive.org/web/20200623024132/https://www.hollywoodreporter.com/news/analysts-predict-studios-premium-vod-174622|url-status=live}}</ref><ref>{{cite web|url=https://variety.com/2011/digital/news/biz-redefines-pvod-plan-1118039574/|title=Biz redefines PVOD plan|first=Marc|last=Graser|work=[[Variety (magazine)|Variety]]|date=8 July 2011|access-date=21 June 2020|archive-date=9 March 2021|archive-url=https://web.archive.org/web/20210309044908/https://variety.com/2011/digital/news/biz-redefines-pvod-plan-1118039574/|url-status=live}}</ref>

PVOD made a return during the [[COVID-19 pandemic]] and the resulting [[Impact of the COVID-19 pandemic on cinema|global closures of cinemas]]. Certain films that had already been released including ''[[The Invisible Man (2020 film)|The Invisible Man]]'' were quickly also released on VOD platforms for a higher rental price than usual, while other films including ''[[Trolls World Tour]]'' were released [[Simultaneous release|simultaneously]] on PVOD and in [[drive-in theater]]s, or in some cases directly to PVOD only.<ref name="slate-uni">{{Cite web |url=https://slate.com/culture/2020/03/coronavirus-universal-movies-trolls-2-the-hunt-invisible-man-streaming.html |last=Adams |first=Sam |title=Universal Reacts to Coronavirus by Releasing New Movies Straight to Streaming |work=[[Slate (magazine)|Slate]] |date=16 March 2020 |access-date=16 March 2020 |archive-date=18 February 2021 |archive-url=https://web.archive.org/web/20210218232011/https://slate.com/culture/2020/03/coronavirus-universal-movies-trolls-2-the-hunt-invisible-man-streaming.html |url-status=live }}</ref>

In most cases, these PVOD releases are offered through most of the same platforms as traditional TVOD, but at a higher price, typically about US$20 for a 48-hour rental;<ref name="slate-uni" /> this offering has again been branded as "Home Premiere" by some studios and platforms. [[The Walt Disney Company|Disney]] used the September 2020 release of [[Mulan (2020 film)|the live-action remake of ''Mulan'']] to launch a related model called [[Disney+#Premier Access|Premier Access]]; this requires customers to pay a premium fee (approximately US$26–30 depending on country) on top of a subscription to the [[Disney+]] streaming service, but they then retain access as long as they maintain their subscription (for ''Mulan'', this was effectively a 90-day rental, as the film became available to all Disney+ subscribers at no extra charge in December).<ref>{{cite web|url=https://variety.com/2020/digital/news/mulan-disney-plus-all-subscribers-no-extra-charge-1234757666/|title='Mulan' Will Be Available to All Disney Plus Subscribers in December for No Extra Cost|last=Spangler|first=Todd|work=[[Variety (magazine)|Variety]]|date=2 September 2020|access-date=2 September 2020|archive-date=3 September 2020|archive-url=https://web.archive.org/web/20200903070441/https://variety.com/2020/digital/news/mulan-disney-plus-all-subscribers-no-extra-charge-1234757666/|url-status=live}}</ref>

It has been reported that the pandemic had contributed to a transformation in movie distribution in favor of PVOD over traditional movie houses, as studios were able to realize 80% of revenue through PVOD versus 50% of traditional theater box office receipts. Theater owners including AMC and Cinemark, as well as suppliers including IMAX and National CineMedia, all experienced significant drops in revenues during shutdowns related to COVID-19.<ref>{{cite web |last1=Williams |first1=Joseph |title=Premium VOD here to stay as more studios embrace streaming, analysts say |url=https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/premium-vod-here-to-stay-as-more-studios-embrace-streaming-analysts-say-59140797 |website=www.spglobal.com |publisher=Standard & Poors |language=en-us |date=23 June 2020 |access-date=3 November 2021 |archive-date=23 October 2021 |archive-url=https://web.archive.org/web/20211023231932/https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/premium-vod-here-to-stay-as-more-studios-embrace-streaming-analysts-say-59140797 |url-status=live }}</ref>

===Subscription models===
{{See also|List of streaming media services|Streaming media}}
[[File:The Great. Courses Plus - App Screen Shot.jpg|thumb|right|A screenshot of a subscription video on-demand service showing a typical visual catalog interface of video content]]

'''Subscription VOD''' ('''SVOD''') services use a [[subscription business model]] in which subscribers are charged a regular fee to access unlimited programs.<ref name="McDermott">{{cite web|last1=McDermott |first1=John |title=CTV, OTT, SVOD, AVOD, BVOD, FAST…What the Tech are all these digital TV acronyms? |url=https://www.thecurrent.com/ctv-ott-svod-avod-bvod-fast-what-the-tech-are-all-these-digital-tv-acronyms |website=The Current |publisher=[[The Trade Desk]] |date=March 17, 2025
 |access-date=10 July 2025|archive-url=https://archive.today/20231201202818/https://www.thecurrent.com/ctv-ott-svod-avod-bvod-fast-what-the-tech-are-all-these-digital-tv-acronyms |archive-date=1 December 2023}}</ref><ref name="Dacast">{{cite web|last1=Krings |first1=Emily |title=SVOD: Everything to Know About Subscription Video On Demand |url=https://www.dacast.com/blog/svod/ |website=[[Dacast]] |date=April 10, 2025 |access-date=10 July 2025}}</ref><ref name="Endavo">{{cite web|title=What is SVOD? Your Guide To Subscription Video On Demand |url=https://www.endavomedia.com/svod/ |website=Endavo Media |date=October 26, 2025 |access-date=10 July 2025}}</ref> Examples of these services include [[Netflix]], [[Hulu]], [[Fandango at Home]], [[Amazon Prime Video]], [[HBO Max]], [[Disney+]], [[Peacock (streaming service)|Peacock]], [[Paramount+]], [[Apple TV+]],<ref name="Bacon">{{cite web|last1=Bacon |first1=Brian |title=Content most enjoyed on top US SVOD services, (US) 2025 |url=https://www.spglobal.com/marketintelligence/en/news-insights/research/content-most-enjoyed-on-top-us-svod-services-us-2025 |website=[[S&P Global]] |date=22 February 2026 |access-date=10 July 2024}}</ref> [[Disney+ Hotstar]], [[iQIYI]], [[iWant]], [[Viu (streaming service)|Viu]], [[Hayu (streaming service)|Hayu]], [[BET+]], [[Discovery+]], [[Canal+ (streaming service)|Canal+]], [[Crunchyroll]], [[Hidive]], [[SonyLIV]], [[ZEE5]], and [[Gulli|GulliMax]].

===Near video on demand===
{{Globalize section|date=February 2015}}
Near video on demand (NVOD) is a [[pay-per-view]] consumer video technique used by multi-channel broadcasters using high-bandwidth distribution mechanisms such as satellite and cable television. Multiple copies of a programme are broadcast at short time intervals (typically staggered on a schedule of every 10–20 minutes) on linear channels providing convenience for viewers, who can watch the programme without needing to tune in at the only scheduled point in time.

A viewer may only have to wait a few minutes before the next time a movie will be programmed. This form is bandwidth-intensive, reduces the number of channels a provider can offer, and is generally provided by large operators with a great deal of redundant capacity. This concept has been reduced in popularity as video on demand is implemented, along with providers often wanting to provide the maximum [[throughput]] for their [[broadband]] services possible.<ref name="What Is VOD Technology">{{cite web|url=https://smallbusiness.chron.com/vod-technology-14311.html|title=What Is VOD Technology?|date=20 July 2011 |access-date=21 April 2021|archive-date=21 April 2021|archive-url=https://web.archive.org/web/20210421091132/https://smallbusiness.chron.com/vod-technology-14311.html|url-status=live}}</ref>

Only the satellite services [[DirecTV]] and [[Dish Network]] continue to provide NVOD services, as they do not offer broadband and much of their rural customer base only has access to slower [[dial-up internet access|dial-up]] and non-[[5G]] wireless and [[Satellite Internet access|satellite internet]] options which cannot stream films or have onerous [[data cap]]s (and where possible, [[AT&T]] is now prioritizing their streaming service [[AT&T TV]], which utilizes a fully immediate VOD experience, over DirecTV<ref>{{Cite web|url=https://arstechnica.com/information-technology/2020/03/struggling-att-plans-tens-of-billions-in-cost-cuts-more-layoffs/|title=Struggling AT&T plans "tens of billions" in cost cuts, more layoffs|last=Brodkin|first=Jon|date=2020-03-04|website=Ars Technica|language=en-us|access-date=2020-03-04|archive-date=18 March 2020|archive-url=https://web.archive.org/web/20200318212102/https://arstechnica.com/information-technology/2020/03/struggling-att-plans-tens-of-billions-in-cost-cuts-more-layoffs/|url-status=live}}</ref>).

Before the rise of VOD, the cable pay-per-view provider [[In Demand]] provided up to 40 channels in 2002, with several films receiving four channels on a staggered schedule to provide the NVOD experience for viewers.<ref>{{Cite web|url=http://echelonstudios.us/?page_id=681|title=Echelon Studios|website=Echelon Studios|access-date=18 May 2017|archive-date=28 October 2017|archive-url=https://web.archive.org/web/20171028201237/http://echelonstudios.us/?page_id=681|url-status=live}}</ref> As of 2018, most cable pay-per-view channels now number mainly 3–5, and are used mainly for live ring sports events (boxing and professional wrestling), comedy specials, and concerts, though the latter two sources are declining due to streaming services offering much more lucrative performance contracts to performers, and several ring sports organisations (mainly [[UFC]] and [[WWE]]) now prefer direct marketing of their product via streaming services such as [[ESPN+]], the [[WWE Network]], and the apps of [[Fox Sports (United States)|Fox Sports]] over pay-TV providers which require a portion of the profits they otherwise retain directly. In Australia, pay-TV broadcaster [[Foxtel]] offers NVOD for new-release movies over their satellite service.<ref>{{Cite web|title= Rent Store + Box Office titles – Store + Box Office|author= Foxtel Support|url= https://www.foxtel.com.au/got/support/tv/how-to-use/store-box-office/store-box-office.html|website= foxtel.com.au|access-date= 9 December 2015|archive-date= 19 September 2015|archive-url= https://web.archive.org/web/20150919040412/https://www.foxtel.com.au/got/support/tv/how-to-use/store-box-office/store-box-office.html|url-status= live}}</ref>

Edge Spectrum, an American holder of [[low-power broadcasting]] licenses, has an eventual business plan to use its network and a system of [[digital video recorder]]s to simulate the video-on-demand experience.<ref>[https://www.edgespectrum.com/ EdgeSpectrum.com] {{Webarchive|url=https://web.archive.org/web/20200219202609/https://www.edgespectrum.com/ |date=19 February 2020 }}, retrieved 19 February 2020.</ref> Most of Edge Spectrum's channels, where they are on air, carry [[televangelism]].<ref>{{cite web |url=https://www.rabbitears.info/search.php?request=owner_search&owner=Edge+Spectrum |title=Stations for Owner - Edge Spectrum |website=rabbitears.info |access-date=23 August 2021 |archive-date=13 August 2021 |archive-url=https://web.archive.org/web/20210813042159/https://www.rabbitears.info/search.php?request=owner_search&owner=Edge+Spectrum |url-status=live }}</ref><ref>{{cite web |url=https://ibntelevision.com/about/esi/ |title=Edge Spectrum, Inc. |website=ibntelevision.com |access-date=23 August 2021 |archive-date=13 August 2021 |archive-url=https://web.archive.org/web/20210813042426/https://ibntelevision.com/about/esi/ |url-status=live }}</ref>

===Push video on demand===
Push video on demand is so-named because the provider "pushes" the content out to the viewer's set-top box without the viewer having requested the content. This technique is used by several broadcasters on systems that lack the connectivity and bandwidth to provide true "streaming" video on demand. Push VOD is also used by broadcasters that want to optimize their video streaming infrastructures by pre-loading the most popular contents to the consumers' set-top device. If the consumer requests one of these films, it is already loaded on her or his DVR.<ref name="What Is VOD Technology"/>

A push VOD system uses a personal video recorder (PVR) to store a selection of content, often transmitted in spare capacity overnight or all day long at low bandwidth. Users can watch the downloaded content at the time they desire, immediately and without any buffering issues. Push VOD depends on the viewer recording content so choices can be limited.<ref>{{cite web|url=http://smallbusiness.chron.com/vod-technology-14311.html|title=What Is VOD Technology?|last=Anderson|first=Casey|work=Houston Chronicle|date=20 July 2011 |access-date=8 December 2015|archive-date=10 December 2015|archive-url=https://web.archive.org/web/20151210212029/http://smallbusiness.chron.com/vod-technology-14311.html|url-status=live}}</ref>

===Advertising video on demand===
Advertising video on demand (AVOD) uses an advertising-based revenue model. This allows companies that advertise on broadcast and cable channels to reach people who watch shows using VOD. This model also allows people to watch content without paying subscription fees. [[Hulu]] was a major AVOD company before ending its free service in August 2016, transferring it to [[Yahoo! View]] using the existing Hulu infrastructure. [[Crackle (service)|Crackle]] has introduced a series of advertisements for the same company that ties into the content that is being watched.<ref>{{cite journal|title=For Ad VOD Players, Success Is Blend of Linear, Digital Models|last=Baysinger|first=Tim|journal=[[Broadcasting & Cable]]|date=15 August 2016|page=18}}</ref><ref>{{cite journal|title=Tech Tweets|journal=Broadcasting & Cable|date=15 August 2016|page=23}}</ref>

Ad-Supported Video on Demand (ASVOD) refers to video services that provide free content supported by advertisements.<ref name="videa.tv"/> Popular services include [[Pluto TV]], [[Xumo]], the [[Roku]] Channel, [[Samsung TV Plus]], [[Amazon Freevee]], [[Popcornflix]], [[Crackle (service)|Crackle]], [[Tubi]], [[Movies Anywhere]], [[Vudu]], [[Dailymotion]], and [[YouTube]].<ref>{{Cite web|url=https://www.cordcuttersnews.com/the-roku-channel-is-the-most-popular-free-streaming-service-beating-out-pluto-tv-crackle-tubi-2018-cordie-awards/|title=The Roku Channel Is the Most Popular FREE Streaming Service Beating Out Pluto TV, Sony Crackle, & Tubi (2018 Cordie Awards)|last=Bouma|first=Luke|date=23 December 2018|website=Cord Cutters News|language=en-US|access-date=24 December 2018|archive-date=23 December 2018|archive-url=https://web.archive.org/web/20181223174932/https://www.cordcuttersnews.com/the-roku-channel-is-the-most-popular-free-streaming-service-beating-out-pluto-tv-crackle-tubi-2018-cordie-awards/|url-status=live}}</ref> Walmart is adding ASVOD original programming to Vudu, and YouTube Originals will be ASVOD by 2020.{{update inline|date=March 2022}}<ref name="smartbrief.com"/>

'''Data analysis'''

When technology companies, include SVOD apps on their devices, like phones, tablets, televisions, game systems, computers, this can remove an attitude obstruction for a user to view content.<ref name=":0">{{cite journal| url=https://doi.org/10.1080/08997764.2020.1796687| doi=10.1080/08997764.2020.1796687| title=IDEA FORUM: The impact of subscription-based video on demand on traditional distributors' value chains and business models| year=2018| last1=Clement| first1=Michel| last2=Otten| first2=Cord| last3=Seifert| first3=Rouven| last4=Kleinen| first4=Ole| last5=Houston| first5=Mark B.| last6=Karniouchina| first6=Ekaterina V.| last7=Heller| first7=Christoph| journal=Journal of Media Economics| volume=31| issue=1–2| pages=50–67| s2cid=221299615| url-access=subscription}}</ref> This technology also provides an advantage for technology companies for data analysis of viewed content from consumers.<ref name=":0" /> By analyzing data of what is viewed most by consumers, companies can purchase more content that is aimed for an audience, and then in-turn market products that are based on what viewer profiles are of a group of consumers who viewer a specific amount of content.<ref name=":0" /> This data analysis will often provide researchers valuable data that includes: what was watched, when it was watched, what they watched after watching, and even how many people watched the same video at the same time in a day, month, and even year.<ref>{{cite journal| url=https://doi.org/10.1007/s11390-016-1684-9| doi=10.1007/s11390-016-1684-9| title=CPA-VoD: Cloud and Peer-Assisted Video on Demand System for Mobile Devices| year=2016| last1=Cheng| first1=Lei-Gen| last2=Cui| first2=Laizhong| last3=Jiang| first3=Yong| journal=Journal of Computer Science and Technology| volume=31| issue=6| pages=1087–1095| s2cid=255169269| url-access=subscription}}</ref>

'''Economics of SVOD'''

Attendance in movie theaters had declined during the 2020 COVID-19 pandemic.<ref name=":1">{{Cite web |last=Adgate |first=Brad |title=The Impact COVID-19 Had On The Entertainment Industry In 2020 |url=https://www.forbes.com/sites/bradadgate/2021/04/13/the-impact-covid-19-had-on-the-entertainment-industry-in-2020/ |access-date=2023-07-13 |website=Forbes |language=en}}</ref> Worldwide in 2019, theatrical entertainment reach 11.4 billion dollars, but in 2020, it was only 2.2 billion.<ref name=":1" /> Due recovery efforts to increase those attendance numbers, along with the growing amount of marketing that is need to gain the attention of an audience, pinning down an exact budget for a film production can be difficult.<ref name=":2">{{Cite web |title=How Exactly Do Movies Make Money? |url=https://www.investopedia.com/articles/investing/093015/how-exactly-do-movies-make-money.asp |access-date=2023-07-13 |website=Investopedia |language=en}}</ref> Video on demand can have three release strategies that include: day-and-date (instantaneous release in theaters and on VOD), day-before-date (VOD before theatrical viewing), and VOD only.<ref name=":2" /> Production studios can make revenue on these types of releases until sales start to slow.<ref name=":2" /> After that, film companies can then license the content to other streaming services and, temporarily, make extra income like that too.<ref>{{Cite web |last= |date=2020-10-30 |title=How do Netflix movies make money? |url=https://netflixlife.com/2020/10/30/how-do-netflix-movies-make-money/ |access-date=2023-07-13 |website=Netflix Life |language=en-US}}</ref>

In a reflection made by 2013 Netflix Chief Content Officer, [[Ted Sarandos]], he was quoted saying, "When we launch in a territory the [[BitTorrent]] traffic drops as the Netflix traffic grows."<ref name=":3">{{cite journal| url=https://doi.org/10.1016/j.jebo.2019.03.017| doi=10.1016/j.jebo.2019.03.017| title=Experimental evidence on demand for "on-demand" entertainment| year=2019| last1=McKenzie| first1=Jordi| last2=Crosby| first2=Paul| last3=Cox| first3=Joe| last4=Collins| first4=Alan| journal=Journal of Economic Behavior & Organization| volume=161| pages=98–113| s2cid=159448708| url-access=subscription}}</ref> This can be valuably interpreted as in that online piracy numbers drop the more that SVOD companies grow, which in turn means more revenue going back to the production companies.<ref name=":3" />

'''Behavior detrimental to SVOD revenue'''

Online piracy is detrimental to production companies that produce digital content.<ref name=":4">{{cite journal| url=https://doi.org/10.1287/mnsc.2017.2875| doi=10.1287/mnsc.2017.2875| title=The Effect of Subscription Video-on-Demand on Piracy: Evidence from a Household-Level Randomized Experiment| year=2018| last1=Godinho De Matos| first1=Miguel| last2=Ferreira| first2=Pedro| last3=Smith| first3=Michael D.| journal=Management Science| volume=64| issue=12| pages=5610–5630| s2cid=58008075| hdl=10400.14/33147| hdl-access=free}}</ref> In a study that offered BitTorrent users a free SVOD subscription, the results of the research provided readers with information that show download and upload speeds in those homes decreased with a free subscription, but it could not prove decreased use in BitTorrent software.<ref name=":4" />

== See also ==
{{portal|Internet}}
* [[Comparison of video hosting services]]
* [[Direct-to-video]]
* [[Music on demand]]
* [[National Streaming Day]]
* [[Over-the-top media service]]

== References ==
{{reflist}}

== Further reading ==
* {{cite journal | last = Petley | first = Julian | title = The regulation of pornography on video-on-demand in the United Kingdom | journal = [[Porn Studies]] | volume = 1 | issue = 3 | pages = 260–284 | doi = 10.1080/23268743.2014.927705 | date = July 2014 | url = http://bura.brunel.ac.uk/handle/2438/9822 }}
* What is Broadcaster VOD. [https://www.thinkbox.tv/How-to-use-TV/VOD/What-is-Broadcaster-VOD Broadcaster Video On Demand is an exciting and evolving landscape which offers advertisers a host of premium advertising opportunities around trusted, quality content. It’s an important part of the new TV ecosystem that is helping people to watch more of the TV they love.] {{Webarchive|url=https://web.archive.org/web/20210308123951/https://www.thinkbox.tv/how-to-use-tv/vod/what-is-broadcaster-vod/ |date=8 March 2021 }}
* Broadcaster VOD services. [https://www.thinkbox.tv/How-to-use-TV/VOD/Broadcaster-VOD-services There are a host of different VOD services from the UK broadcasters all brimming with opportunities for advertisers. Here you’ll find an overview of the key players and their on-demand services by platform] {{Webarchive|url=https://web.archive.org/web/20210308170718/https://www.thinkbox.tv/how-to-use-tv/vod/broadcaster-vod-services/ |date=8 March 2021 }}
* Broadcaster VOD advertising formats. [https://www.thinkbox.tv/How-to-use-TV/VOD/Broadcaster-VOD-advertising-formats From clickable pre-rolls to full interactivity, broadcaster VOD advertising is always innovating. Here you can get the low down on the various VOD formats currently available from the UK TV companies] {{Webarchive|url=https://web.archive.org/web/20210309033924/https://www.thinkbox.tv/how-to-use-tv/vod/broadcaster-vod-advertising-formats/ |date=9 March 2021 }}
* {{cite news |url=https://www.nytimes.com/2007/08/06/business/media/06stream.html |title=Nothing to Watch on TV? Streaming Video Appeals to Niche Audiences |work=[[The New York Times]] |date=6 August 2007 |access-date=1 April 2008 | first=Michel | last=Marriott}}
* {{cite news |url=http://news.cnet.com/2100-1025_3-6021998.html |title=Google entering video-on-demand business |publisher=[[CNET Networks|CNET News]] |date=9 January 2006 |access-date=23 May 2016}}
* {{cite news |url=http://www.screendigest.com/reports/08ondemandmedia/readmore/view.html |title=On-demand media: Re-inventing the retail business model |work=Screen Digest |date=March 2008 |access-date=1 April 2008 |archive-url = https://web.archive.org/web/20080318150733/http://www.screendigest.com/reports/08ondemandmedia/readmore/view.html <!-- Bot retrieved archive --> |archive-date = 18 March 2008}}
* {{cite news |url=https://www.reuters.com/article/pressRelease/idUS52307+06-Jan-2008+BW20080106 |archive-url=https://web.archive.org/web/20081220045546/http://www.reuters.com/article/pressRelease/idUS52307+06-Jan-2008+BW20080106 |url-status=dead |archive-date=20 December 2008 |title=Pioneer Optical Disc Expertise Advances On-Demand DVD Entertainment |work=[[Reuters]] |date=6 January 2008 |access-date=1 April 2008 }}
*  [[Amanda D. Lotz|Lotz, Amanda D.]] (2007) "The Television Will Be Revolutionized". New York: New York City University Press. p.&nbsp;59.
*  McGregor, Michael A., Driscoll, Paul D., McDowell, Walter (2010) "Head’s Broadcasting in America: A Survey of Electronic Media". Boston, Massachusetts: Allyn & Bacon p.&nbsp;47–48.
* {{cite news|url=http://www.itvdictionary.com/vod.html|title=The Video on Demand Business Index|access-date=27 April 2011|archive-url=https://archive.today/20240527195609/https://www.webcitation.org/6gqi68gIB?url=http://www.itvdictionary.com/vod.html|archive-date=27 May 2024|url-status=dead}}
* {{cite news |url=http://mavise.obs.coe.int|title= MAVISE, Database on television and on-demand audiovisual services in Europe (European Audiovisual Observatory)}}
* {{cite news |url=http://www.obs.coe.int/en/industry/video|title= Market intelligence on the VOD markets in Europe (European Audiovisual Observatory)}}

{{VOD services}}
{{Authority control}}

[[Category:Video on demand| ]]