Find out the key difference between OTT and VOD services. Discover which model is more profitable or best for your entertainment preferences.
Video streaming projected revenue Worldwide is expected to reach US$108.50bn in 2024.
Also, the number of the population using video streaming services is expected to reach 18.3% in 2024 and 20.7% by 2027.
Guess what? This statistics is going to keep rising!
Hence, video streaming is a profitable business model and a convenient entertainment medium for consumers.
Keep reading to discover the difference between OTT and VOD, which will guide you on choosing the right model.
Let’s dive in.
Table of Contents
Key Takeaways
- OTT contents are delivered via internet connections accessed through apps or websites.
- VOD or Video on Demand is a video streaming model that allows users to access content at their own convenience without following broadcast schedules.
- VOD offers a variety of subscription plans such as monthly plans, rental options or pay per view plans.
- Adilo is a robust Video on Demand (VOD) service provider with advanced video streaming features
- For viewers seeking uninterrupted video streaming, SVOD is highly recommended.
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What is an OTT?
OTT or Over-the-Top model refers to content streamed over the internet without needing to subscribe to a cable box or satellite dish.
Content streamed on OTT includes movies, TV shows, live sports, music and podcasts. Popular OTT platforms are Netflix, YouTube, Hulu, Amazon Prime, Spotify and Disney+.
Furthermore, OTT platforms can be categorized based on how they’re monetized:
- SVOD (Subscription Video on Demand) like Netflix
- AVOD (Ad-supported Video on Demands) like YouTube
- TVOD (Transactional Video on Demand) like iTunes
How Does OTT Work?
OTT contents are delivered via internet connections accessed through apps or websites.
Content ranging from movies to music are uploaded, streamed and distributed on OTT platforms for users. Users interested in any of the content then have to download the app or connect via the website to download the content.
After an account is created by the users, content can be streamed for free with ads, or through paid subscriptions.
Also, content on OTT can be saved on a user dashboard and can be accessed anytime. Viewers can as well start watching a video before the entire content gets downloaded.
Pros
- Easy navigation: It is easy to create an account on OTT platforms. Likewise, streaming your favorite content at any time and any location.
- Device compatibility: OTT apps and platforms are highly compatible with different devices. This includes computers, tablets, smartphones, and even smart TVs.
- Cost effective: You can follow up on your favorite entertainment videos via OTT platform at low or zero cost. This is because some contents are free and others come with flexible pricing.
- Content variety: OTT platform offers users a vast options of content to stream. This includes movies, Tv shows, documentaries, podcasts and more.
Cons
- Internet dependent: Users need a stable internet connection to experience a smooth viewing without buffering or low content.
- Content restriction: Often, not all contents are available for free. Hence, you have to pay to access those premium content.
- Data hitches: streaming content directly over OTT platform are data consuming which incur extra cost for users with a tight budget.
What is VOD?
VOD or Video on Demand is a video streaming model that allows users to access content at their own convenience without following broadcast schedules.
This means viewers can stream or download videos over the internet at will using different devices like smartphones, tablets or computers. VOD content is mostly pre-recorded content.
Popular VOD streaming platforms include Netflix, Hulu, and Amazon Prime.
How Does VOD Work?
VOD platforms store their video content on multiple servers using Content Delivery Network (CDN).
These stored video content are delivered to users through internet connected devices. Viewers conveniently choose to stream content in real time or download to watch offline.
VOD platforms are updated with fresh content. Hence, subscribers have a new and updated library of content to select from.
Pros
- Convenience: Users can access videos on VOD platforms at their convenience without following broadcast schedules.
- Content variety: VOD platforms aim to generate revenue and retain viewers. To achieve this, new content is regularly uploaded to keep users coming back and renewing their subscription plans.
- Flexible subscription plan: VOD offers a variety of subscription plans such as monthly plans, rental options or pay per view plans.
Cons
- Subscription cost: VOD can incur cumulative cost when viewers maintain a consistent subscription plan. However, VOD are still cost effective compared to traditional cables.
- Content overload: Viewers can get overwhelmed with videos content that are frequently uploaded in mass on VOD platforms
- Internet dependence: VOD content requires a stable internet connection for quality streaming.
- Data consumption: Streaming videos on VOD platforms are data consuming and aren’t suitable for viewers with limited data plans.
Types of VOD
There are different types of VOD platforms. However, most of these types of VOD services are also subcategories of OTT.
Despite these similarities in subscription types, a key difference between OTT and VOD is that Video On Demand services are mostly pre-recorded.
Here are the types of VOD:
- Subscription Video on Demand (SVOD): These are video content accessed when viewers pay a subscription fee which can be recurring. Examples include Netflix, Hulu, Disney+.
Don’t hesitate to read our expert guide on how to build a profitable SVOD service if you are considering starting one.
- Transactional Video on Demand (TVOD): These are video content accessed based on pay per video or per series in contrast to subscribing to a service. Examples include iTunes, Google Play Movies, Amazon Prime.
- Advertising Video on Demand (AVOD): These are video content accessed for free, but users have to watch ads during playback. Examples includes YouTube, Tubi
- Live Video on Demand (Live VOD): Live events are recorded and made available on demand via VOD platforms after the live broadcast has ended. These include sport events, live news, or broadcasted concerts.
VOD Service Platform Provider
There could be differences between OTT and VOD, however, both content need a video service platform provider.
Perhaps, you’re considering starting a VOD service? If yes, below are top VOD service platform provider:
Adilo
Adilo is a robust Video on Demand (VOD) service provider with advanced video streaming features. It combines security, monetization, analytics and more features in delivering quality streaming to meet demands of businesses, online creators and marketers.
Here are key features why Adilo is the best VOD service provider in the market:
- Unlimited hosting service
- Ad-Free streaming
- Video split testing
- DRM and security
- Video CMS
- Video Playback
- SEO option
- Screen and camera recorder
- Customization
- Monetization
- Analytics
Wistia
Wistia is a video on demand platform provider that enables you to host, manage and optimize your videos effortlessly. You can leverage Wistia’s Content Management System (CMS) including folders tags and secured sharing options. Additional tools include analytics tools, monetization options, and SEO tools.
Vidyard
Vidyard is an advanced video platform that offers tools like AI-powered script generation, video hosting and automated processes. This helps optimize your VOD service with its robust analytics. Also, its customized video messaging, monetization options, and customization option guarantee quality video production.
Difference Between OTT and VOD Services VOD
Below are the key differences between OTT and VOD platforms:
| Features | OTT (Over the Top) | VOD (Video on Demand) |
| Content Access | OTT offers a variety of streaming services, including live broadcast. | VOD focuses on on-demand access to pre-recorded video content. |
| User Experience | Viewers have the flexibility of choosing from a variety of videos, music or podcast contents. | Viewers are restricted to just video content. |
| Security | Offers less security features | Offers high security features |
| Content Variety | Content includes live TV, original series, movies, sport, and sometimes music/podcast. | VOD content is mostly pre-recorded such as movies, TV shows and series. |
| Streaming Options | OTT offers adaptive streaming including live content | VOD focuses on smooth playback for pre-recorded video content. |
| Examples | Netflix, YouTube, Disney+, iTune, Hulu, Amazon prime, HBO. | |
Similarities Between OTT and VOD
While there are differences between OTT and VOD, there are also some similarities:
- Subscription Model: Both OTT and VOD models can be categorized into Subscription Video on Demand (SVOD), Advertisement Video on Demand (AVOD) and Transactional Video on Demand (TVOD).
- Internet Dependent: Both OTT and VOD models deliver content over the internet without needing cable or paid satellite plan.
- Ad supported: Ad supported videos can be streamed for free via OTT and VOD platforms.
- On-demand Access: Both models allow viewers to subscribe to on-demand access. This allows viewers to decide when and where to watch any content of their interest.
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FAQs
Are all OTT services also VOD?
No, not all OTT services are VOD. This is because OTT (Over the Top) services are content delivered via the internet which can be both live-streamed content like TV channels and on-demand content.
Can I watch VOD content without an internet connection?
Yes, most VOD platforms allow users to download content and watch later without an internet connection, although internet connection is needed for initial download.
Is VOD a type OTT service?
Yes, VOD is a type of OTT service. This is because OTT refers to content accessed over the internet without needing traditional cable or satellite dish, and VOD happens to deliver pre-recorded, on demand video over such medium.
How to start a profitable VOD service?
To start a profitable VOD service you must define your niche by choosing a niche that has high demand and less supply. Afterwards, you need to decide on what monetization model you want which includes SVOD, AVOD, or TVOD. Also, invest in a reliable VOD platform provider while relentlessly promoting your content to your desired audience.
Is Netflix a VOD platform?
Yes, Netflix is a VOD platform. Netflix offers a variety of pre-recorded, on demand content users can access anytime. However, Netflix is a Subscription Video on Demand (SVOD) model that allows users to access content at a fee.
Final Thoughts on the Difference Between OTT and VOD
There are key differences between OTT and VOD despite the similarities in their subscription model.
Hence, one key difference between OTT and VOD is that VOD can be incorporated within OTT streaming services.
However, for viewers seeking uninterrupted video streaming, SVOD is highly recommended. In contrast, viewers on a tight budget or seeking flexibility can opt for AVOD or TVOD platforms.
Moreover, if considering generating revenue through video streaming, SVOD services are more profitable. But, to cash in big with VOD I recommend using reliable service platforms like Adilo.
Experience: Happiness Hassan is an SEO content writer and strategist with over 7 years of experience helping brands boost visibility, engagement, and sales.
Expertise: Whether it's keyword research, crafting content, or fine-tuning on-page and off-page strategies, I’ve got you covered. My goal is beyond driving traffic but making your users experience a win-win for everyone!
On the coaching side, I’ve trained countless writers to turn their passion into profitable SEO careers. I help them navigate the SEO path, standing out in even the toughest niches and cashing in on their skills.
When I’m not geeking out over SEO, you’ll find me deep in the world of self-development. As a dedicated student of continuous growth, I write about my growth journey, sharing insights to help others unlock their potential.
Education: Complementing my BSc. Geography and Environmental Management from the prestigious Ahmadu Bello University, Zaria, I have honed my skills as an SEO content writer and strategist through comprehensive training at Northpad, where I gained expertise in crafting optimized content to boost search engine visibility. As a certified student of Jobberman Soft Skills Training, I developed strong communication and problem-solving skills, which complement my SEO proficiency.
My dedication to continuous personal learning and online training keeps me updated with the latest industry trends, enabling me to create content that aligns with the ever-evolving demands of search engines and user experiences. I stay connected with top experts to ensure my strategies remain current and effective.
Felix is the Senior Content Editor and Strategist at Adilo, where he harnesses his expertise in social video marketing, online video platforms, video editing, e-commerce, e-learning, and marketing to to help businesses drive results. With a keen eye for storytelling and a pulse on industry trends, Felix crafts actionable content that empowers brands to elevate their video marketing strategies and thrive in the digital landscape.
