Transactional Video on Demand (TVOD)

Transactional Video on Demand (TVOD) is the term used to describe a monetisation model where viewers pay a one-off fee (or transaction) to buy or rent content via their connected TV devices.

TVOD could involve the viewer paying a fee to buy content — also known as electronic sell-through (EST) or download to own (DTO) — so they can watch it with unlimited, lifetime access. Or viewers can pay a fee to rent content — also known as download to rent (DTR) — so they can watch it for a specific number of times or within a specific time period such as 48 hours. TVOD is often used to monetise events — for example, sports events such as boxing or MMA matches, or concerts — where viewers pay a one-off fee to stream the event. TVOD is also referred to as pay-per-view (PPV), particularly when talking about streaming events.

Although TVOD and Subscription-based Video on Demand (SVOD) both require viewers to pay a fee to watch content, TVOD is a one-off fee to access specific content whereas SVOD is a recurring monthly fee to access a catalogue of content.

TVOD is often used to monetise premium or new content. By creating a buzz around this exclusive content, the platform potentially has an opportunity to generate more income through multiple one-off fees than it would via SVOD or Advertiser-funded Video on Demand (AVOD) monetisation or it could attract viewers who would rather pay a one-off fee than sign up to an ongoing subscription or watch ads.

Some platforms will offer TVOD content as part of a Hybrid Video on Demand (HVOD) revenue model, combining extra content available for exclusive one-off purchase with libraries of SVOD or AVOD content. This enables platforms to offer multiple options to viewers and/or advertisers and maximise revenue.

Examples of TVOD platforms include Apple’s iTunes, Amazon Prime Video, Google Play, WOW,  and Sky Box Office.