Understand the "PVOD" term and business model of streaming services
As the dramatic change to the TV and Movie industry continues, new services and business models appear in the marketplace.
This post explains the term "PVOD" - short for Premium Video On Demand - and is an expansion of a previous post covering the terms "SVOD", "TVOD" and "AVOD".
You can read the original post here (this post continues below) :
First, lets take a look at the "VOD" part. Video On Demand is generally associated with the ability of the consumer to select when and where to watch content. As opposed to traditional linear TV channel play-out. On Demand follows as an essential attribute of using the Internet to deliver the video. Hence, "VOD" is sometimes also used generically to describe a business model or service, that is online. Much like the term "OTT" (short for Over the Top) is used.
PVOD = Premium Video on Demand
A streaming service like Netflix originally started out as an online library style service, through which you could find a huge amount of predominantly older content. This of course has completely changed with Netflix´ tremendous success and massive investment in original content production.
"Premium" is a term used to classify video content, that is new or "Blockbuster type". The complex rights framework of how movie content is released through different channels is called "windowing". There is a Movie Theater "window", a "rental/TVOD" window, etc.
Online services with subscription models - ie. "all you can watch for a flat monthly fee" - are called SVOD services. They are very limited in their ability include premium content is their services today.
PVOD is a conceptual term used to describe a service, that would include content in early windows - for example you would be able to watch a movie using a PVOD service, even when the movie was still playing in movie theaters - or very shortly after.
Thus PVOD is mainly associated with services that would affect the Movie Theater industry, because this channel on distribution relies on almost total exclusivity for screening blockbusters, upon their release.
The business model would be difficult to establish, and most early attempt have included payments for each individual piece of content users watch, much like an exclusive TVOD service. But attempts have also been made to replicate the SVOD business model, and establish a "membership" or "subscription" model, under which you can watch without concern for costs other than a fixed fee.
Early 2016 Sean Parker announced plans for a PVOD service called Screening Room, which was widely publicized: https://www.theverge.com/2016/4/15/11439694/sean-parker-movie-rental-plan-the-screening-room-cinemacon-2016
UK based Curzon Cinema has a PVOD service, mainly for art-house type movies, and the service allows members to stream movies at home, while the movies are also playing in movie theaters: https://www.curzoncinemas.com/
If a PVOD service with access to also blockbuster content will ever emerge is frequently debated;
Certainly, there are many interests at stake, when we are talking about premium movie content. However, as SVOD services like Netflix invest massively in producing content that is not constrained by rights windows (or geographies) and that they have no intention of even releasing in theaters, the question remains if there is any way for everyone else in the industry to avoid also creating an online channel to reach consumers with a PVOD service.
Blogger at Freelancer
3yThe best part I understand about PVOD business model and their streaming services. There are some Premium Vod service providers too like VPlayed. Check out your previous article: https://bit.ly/2W5PHBb
#Innovation #Strategy #Leadership #Adtech #Wine #AI
5y@Mads Kaysen would you say QUIBI is a PVOD service ?
"A specialized team delivering excellence in ServiceNow IRM/GRC, ITAM, ITOM, Databricks, and AI-driven solutions."
7yMads... few more options that can be added.... (NVOD = Near Video OnDemand | FVOD = Free Video OnDemand | )
Founder & Exec Producer CommEnt.x - Strategic Media & Finance Executive | Film & TV Production | Content Investment | Commercial Entertainment Exchange - Making Great Screen Content an Investment-Grade Asset
7yThanks for the good articles Mads and Milan. To my way of thinking, the issues identified merely confirm and identify how once again entertainment, and in this instance, the film industry, is tackling disruption. Theatres are the record stores of this decade. Movie theatres provide an specific experience of a movie to be sure, but theatres are a business, which like any other has to provide its own profitable and sustainable model in the face of significant market changes. What worked in the past won't work now due to market forces, such as the determined demands of an empowered consumer and the demands on their disposable dollar, there is no shortage of content available. Theatres could move to shorter runs and higher content rotation; broader scope of content displayed, including indies, re-runs, retros and classics; content that reflects the appetite and constraints of the local clientele and 24 hour session schedules, special events, whatever. In reality PVOD is the replacement of DVD's in the liquidation of a movie property, and DVD's already have limited release of titles in this standard. PVOD has to happen but it has to reflect a balance between a realistic theatre window and price point. The proposal by Fox above seems pretty close to that balance. Standard price is $22 a ticket at our local theatre for new release on the big screen or a smaller version of the big screen, plus $5.50 an ice-cream or bottle of water etc., so that's around $60 for two to see a movie, without parking fees or childminding if required. Keeping in mind that a DVD purchase, which can also be viewed by multiple people simultaneously, could capture $20-39 in Australia for several months, $30 to stream a relatively new release is about right. Add a gourmet pizza and we're at the same price as a theatre visit for two! VOD is not going away, it is how we will consume our movies, but the theatre experience and the romance with showbiz that it fosters, has significant value to the industry beyond a sales point. It's possible that these facilities might ultimately be maintained by the industry leaders for their distribution in another sense - as a physical point of contact with the movie audience to maintain the allure and heightened movie experience, to promote future content, add panache to new releases with events, solicit market intel etc. Afterall, people actually do LIVE in the real world, so real life connection is not something to be undervalued.
Data Products for Pharma, Diagnostics & Healthcare | Elucidata | IIT Delhi
7ySVOD services have undercut the revenue that movie studios make from DVD sales. PVOD becomes a more urgent requirement in this scenario, to make up for lost revenue, and for movie studios to become competitive in the streaming space by themselves. I have written a blog on the many different parties involved in implementing the Premium VOD model. https://www.vdocipher.com/blog/2017/07/hollywood-premium-video-on-demand/ Would love to hear your input.