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Understanding Television

13.1 The Emergence of Video-on-Demand Services

3 min readLast Updated on August 9, 2024

Video-on-Demand services have revolutionized how we consume TV and movies. No more waiting for scheduled broadcasts or trips to the video store. Now, we can watch what we want, when we want, on any device.

This shift has upended traditional TV. Networks and cable companies are scrambling to keep up, launching their own streaming platforms. Meanwhile, tech giants like Netflix and Amazon are producing award-winning original content, changing the game entirely.

VOD Services

Types of Video-on-Demand Services

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  • Video-on-Demand (VOD) allows users to select and watch video content whenever they choose, rather than at a scheduled broadcast time
  • Subscription Video-on-Demand (SVOD) operates on a recurring payment model, granting subscribers unlimited access to a content library (Netflix, Hulu)
  • Over-the-Top (OTT) services deliver video content directly to viewers via the internet, bypassing traditional cable or satellite providers (YouTube, Amazon Prime Video)
  • Digital distribution enables content providers to deliver media electronically to consumers, eliminating the need for physical copies
  • Streaming technology transmits data as a continuous flow, allowing users to watch content in real-time without downloading the entire file

Evolution of VOD Technology

  • Early VOD systems relied on cable networks and set-top boxes, limiting content availability and user experience
  • Advancements in internet speeds and compression algorithms paved the way for more efficient streaming
  • Cloud computing enabled scalable content storage and delivery, improving service reliability and expanding libraries
  • Mobile devices and smart TVs increased accessibility, allowing users to watch content on various platforms

Impact on Traditional Television

  • VOD services disrupted traditional linear TV programming schedules, giving viewers more control over their viewing habits
  • Time-shifting became prevalent, with audiences watching content at their convenience rather than adhering to broadcast times
  • Binge-watching emerged as a popular viewing behavior, facilitated by the release of entire seasons at once
  • Traditional networks and cable providers adapted by launching their own VOD platforms to compete in the changing landscape

Major Players

Netflix: The Streaming Pioneer

  • Founded in 1997 as a DVD-by-mail rental service, Netflix transitioned to streaming in 2007
  • Revolutionized the industry with its original content strategy, starting with "House of Cards" in 2013
  • Expanded globally, now operating in over 190 countries with a diverse content library catering to various markets
  • Utilizes sophisticated algorithms to personalize content recommendations for each user

Hulu: The Network-Backed Contender

  • Launched in 2007 as a joint venture between several major television networks
  • Offers a unique hybrid model, combining on-demand content with live TV streaming options
  • Focuses on providing current-season episodes of popular TV shows, distinguishing itself from competitors
  • Partners with networks to offer exclusive next-day access to many prime-time shows

Amazon Prime Video: The E-commerce Giant's Offering

  • Introduced in 2006 as Amazon Unbox, later rebranded and integrated into Amazon Prime membership
  • Leverages Amazon's vast e-commerce ecosystem to offer bundled services (free shipping, music streaming)
  • Produces original content through Amazon Studios, competing with traditional studios and streaming rivals
  • Implements a dual model, offering free content to Prime members and pay-per-view options for non-members

Technical Considerations

Content Libraries and Management

  • Content libraries form the backbone of VOD services, requiring strategic curation and licensing agreements
  • Digital Rights Management (DRM) systems protect copyrighted material from unauthorized distribution
  • Content delivery networks (CDNs) distribute media files across multiple servers to reduce latency and improve streaming quality
  • Metadata management enhances search functionality and content discovery for users
  • Adaptive bitrate streaming adjusts video quality based on the viewer's internet connection, ensuring smooth playback

Bandwidth and Infrastructure Challenges

  • High-quality video streaming demands substantial bandwidth, necessitating robust network infrastructure
  • Internet Service Providers (ISPs) face increased pressure to upgrade networks to handle growing streaming traffic
  • Content providers implement various compression techniques to reduce file sizes without significantly compromising quality
  • Buffering and caching mechanisms help mitigate network congestion and improve user experience
  • Edge computing brings content closer to end-users, reducing latency and improving streaming performance in remote areas
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© 2025 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

© 2025 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.