How to succeed with video on demand business

If you have any doubt regarding the power of video streaming, then just have a glimpse at the figures of Netflix to know the power of this medium. Video on demand is quickly gaining momentum and surpassing all other traditional media outlets. It offers the business a chance to monetize their online video content. From movies to sports videos, the variety of video content continues to grow.

In this blog, we will be talking about the key factors to run a successful video on demand business. Let’s get started.

Business model to choose for your video on demand service

Video on demand is the future of the entertainment industry and all market players are investing heavily in video streaming applications. If you are one among them, before learning about how to start a video on demand business, it is important to know about the business model of streaming platforms like Netflix. Like every other new competitor, if you have unique content to offer and the features to stand strong among other popular streaming platforms like Netflix, then definitely the audience will come in.

Once you have everything in place, the next thing is to decide upon a business model or plan how to monetize your video content. Most importantly, if you are choosing a video streaming solution to develop your own platform, for example, a Netflix clone script, ensure it supports the revenue models you choose. There are customizable options out there that support hybrid monetization as well.

Here are some of the common types of video streaming monetization models.

  • Subscription video on demand model (SVOD):

SVOD business models allow you to give access to your users via a subscription plan. The plan can be monthly, quarterly, or on a yearly basis and must give unlimited access to the video library, HD quality streaming, and other value-added services for users. Netflix follows an SVOD model to monetize its content. You can also offer a trial version so that users can actually try the product and make buying decisions.

  • Transactional video on demand (TVOD)

Some video streaming services allow restricted access to the video content via a pay per view model, which allows them to purchase a specific content and gain unlimited access to it. This is transactional VOD model, and it works great for content like concerts, live sports, etc. Some popular examples include Sky movies box office and Apple’s iTunes.

  • Advertisement video-on-demand (AVOD)

AVOD is one of the most common business models followed by new businesses that launch their video streaming service for the first time. This works best to build and grow your audience base. YouTube primarily works on this model along with paid subscriptions and other methods.

  • Hybrid VOD

The hybrid VOD business model is nothing but a combination of all three models discussed above. If you think your video library is getting rich day by day with a growing user base, you can implement a hybrid of different revenue models to monetize your videos further.

For example, YouTube functions exactly the same way. Although the basic version of YouTube is a free and ad-based variant, it also offers other variants like YouTube premium.

Choosing a hybrid model will help you to intrigue a large set of audiences with different preferences.

Key features of a video streaming service

Video streaming platform that powers your streaming service must have some essential features to help you create, manage, monetize, and grow your service. Regardless of the video on demand software you use to build your service, the following are the essential features every VOD platform must-have.

Best CDN

The most important feature of a successful video streaming platform is a top tier CDN. A content distribution network or CDN is a network of computer servers located in different parts of the world. These servers make distribution of video content across a network relatively easy. A CDN helps to deliver videos in a fast way and it is essential in delivering the right content to the right set of audiences.

This is how exactly a CDN works:


Most importantly, a CDN allows you to scale up your online video content. It also helps in handling millions of concurrent viewers without any lag. Every enterprise that wants to create a site like Netflix must use the best CDN to offer global content delivery experience.

Video interface

Video interface and how your viewers engage with your video streaming site is a significant aspect of delivering desirable user experience. When launching your video streaming service. While designing user interface, ensure that you offer convenient features that help users effortlessly to watch videos. For example, Netflix has chosen a business model that allows users to consume what they like and the way they want it, without any time constraints or interruptions. The video streaming giant also offers a custom-tailored section for each subscriber promoting the item that fits him or her.


Analytics is another crucial element in helping video streaming businesses gain insight into their users. Only with the right analytics data, brands can optimize their marketing strategies to deliver better services to customers. Analytics not only offers the quantitative data to make things better, but it also helps in making informed decisions and improves the services.

If you want to run a VOD service, it is important to track data like what content your users prefer to watch when they pause or rewind, the day and time when they watch content, user behavior, location, and the devices they use for watching, etc.

Cross-platform compatibility

We are living in a digital era where people have access to many different devices. Hence, when you run a VOD demand business, it is important to ensure that your VOD service is available across all devices. Users expect a quality viewing experience across all devices they use. To offer a seamless user experience to customers, your VOD site must be able to identify the devices that make the request and deliver content accordingly.


Starting a video demand business can be a complicated procedure and with the tight competition in the industry, the difficulty increases. However, if you are a media company passionate about video on demand, having a VOD platform will help you position yourself as a leading brand in the industry. Hope you have enjoyed reading the blog. Do you have any other tips for success in the VOD industry? If yes, please feel free to share it with us in the comment section below.

RJ Frometa
Author: RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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