The VOD market is thriving. Although the Video on Demand model has been known since the days of… video cassettes, its digitization and widespread internet access have completely displaced traditional video rental stores, and now it is a considerable competitor to traditional television and even cinema.
Traditional VOD is available in several variants, ranging from providing users with platforms offering free content with ads (AVOD), through the possibility of renting content on a one-time basis (TVOD), to classic subscriptions (SVOD) offering access to content for a fixed monthly (or annual) fee.
Interestingly, many streaming platforms offer multiple plans and therefore many different VOD models. One of them is PVOD, or Premium Video on Demand. Do you want to know what exactly it is and what you can gain from this model? What are the advantages of using PVOD, and which platforms offer this option? Read on!
Technology and Distribution
PVOD, or Premium Video on Demand, is actually an extension of the VOD business model. By definition, it is an over-the-top (OTT) media distribution model where SVOD subscribers pay a one-time fee (in addition to their monthly subscription dues) or a higher monthly subscription price to access premium services.
Such premium services include, of course, the absence of ads compared to the AVOD model, but the most important feature of Premium Video on Demand is the ability to watch the latest releases on platforms long before their premieres for non-premium users.
The expansion of this VOD model’s distribution was particularly noticeable during the pandemic, when many cinemas worldwide were temporarily closed due to quarantine.
At that time, some cinema releases were immediately available on streaming platforms and were then available to PVOD users (often for a limited time). Subscribers who did not opt for the premium service could enjoy the release on their favourite platform only after a few months.
Notable PVOD Examples
An example of such a release is the film Mulan from 2020, which on the day of its premiere, September 4th, 2020, was released in cinemas and exclusively on PVOD in every country where Disney is available to subscribers, bringing the creators substantial benefits ($270 million from Premium revenue alone), despite limited possibilities of showing it in cinemas worldwide.
Disney was also the place of the premiere (simultaneously with the cinema, of course) of the film Black Widow, which took place on July 9th, 2021. Subscribers could purchase Premier Access for this film for $29.99, contributing to $67 million in Premier Access revenue from Disney Plus.
Another example is Mortal Kombat, which premiered on April 23rd, 2021 – also simultaneously in cinemas and on PVOD on HBO Max.
The premiere on the platform, however, was limited to 30 days. After this period, users had to wait a few months until the normal home release schedule period.
HBO Max was also the place of the premiere of Godzilla vs. Kong, which took place on March 26th, 2021.
We have mentioned, referring to specific films, two platforms offering their users the Premium Video on Demand service – Disney and HBO Max. However, it is no secret that many of the giants of modern SVOD also have this business model for sale.
PVOD services can also be found on Netflix or Amazon Prime Video. Moreover, the most flagship platforms operating in the TVOD model, such as iTunes, Google Play, or Vudu, also often offer their users access to premium content for an additional fee.
Advantages of PVOD
As we mentioned earlier, the most important feature and the main advantage of using Premium Video on Demand is the ability to watch world blockbusters on the day of their premiere without having to wait for them to appear on regular streaming platforms a few months later.
This is especially significant for all those who hate spoilers – and nowadays, in the age of the internet, you can find memes, photos, reviews, or information related to a new film online just hours after its premiere, spoiling the experience for many viewers.
Another advantage is the ability to watch cinema premieres from your own couch – without leaving home! And frequently at a price similar to a cinema ticket. Considering that you can invite your entire family and friends to the premiere in your living room, the cost per person is even lower.
Another advantage is, of course, the absence of ads, which are now even shown before screenings in the cinema.
Watching a cinema premiere at home, you can also pause the film at any time to go to the bathroom, get a snack, or talk to the people with you about a scene – without missing a single minute of the film.
Depending on the selected service, you can count not only on access to world cinema premieres but also on other additional premium services, such as high display quality – HD and often even 4K, and often additional film materials, such as director’s cuts, behind the scenes, or deleted scenes.
Usually, platform distributors also offer users the ability to watch/listen on many devices, or download materials and use them offline.
It is therefore undeniable that the Premium Video on Demand service is a great choice for everyone who loves to feel well-served and appreciates the ability to use exclusive services, such as – analogous to gaming – early access to a new game, additional equipment, starting bonuses, etc.
Market Impact and Future Trends
As we mentioned earlier, listing the most important examples of premieres in the Premium Video on Demand model, this type of VOD can bring substantial financial benefits to both film distributors and platform owners.
Therefore, they will certainly not give up this form of selling their services. Especially since having learned from the previous situation (pandemic), they have found the golden mean – the perfect way to continue their business without the prospect of losses.
For users, it is also quite a good model. Of course, not for everyone – many people still prefer to watch premieres in the cinema due to the specific, unique atmosphere. Others, on the other hand, are willing to put up with minor inconveniences, such as ads or poor quality, in exchange for the ability to watch older movies and series for free (AVOD) or for a small subscription fee (SVOD).
Many people, however, are eager to reach for their wallets when they have the opportunity to use the exclusivity and luxury that PVOD provides. The choice ultimately always belongs to the user – that is, to you. Especially since none of these services involves a lifetime commitment.
What will the future look like? It is hard for us to predict, especially since technological development is currently rapid and new ideas and innovative solutions are constantly emerging.
However, we believe that the Premium Video on Demand service will not disappear quickly, especially since it benefits both parties in this arrangement.