Ever wondered how we went from DVDs to watching videos anytime, anywhere? This blog takes you through the history of video on demand (VOD)—how it started, how it grew, and why businesses and people love it today. Get ready to explore how VOD changed the way we watch videos!
With 66% of users citing video content as their primary source of information, one thing remains clear – video on demand (VOD) is not dying any time soon. Whether for entertainment, business, or education, video on demand (VOD) has revolutionized how content is accessed and consumed.
You might be wondering why VOD is so popular.
Well, imagine this – you are super occupied with a tight schedule and have no time to attend a lengthy meeting that could’ve been an email. So, what do you do now? Waste your precious hours of the day and give in to the fear of missing out (FOMO) or watch a recorded version of the meeting? Obviously, you would choose the latter option. Right?
For the above reason, an on demand video is not only popular among the masses but also holds a special place in the business landscape. From corporate communications to employee training programs and beyond, you would probably be surprised to know how organizations can use VOD to achieve their business objectives.
But how did we get here? From cable-based video rentals in the 1990s to today’s AI-powered streaming platforms, the history of VOD reveals how businesses and audiences have adapted to on-demand video consumption. This blog explores the evolution of VOD technology, its key milestones, and how businesses continue to leverage it today.
Video on demand, or VOD, is a technology for distributing or delivering video content. With VOD, users can watch videos at their own pace, whenever and wherever they want.
For the sake of old times, think of VOD as a Blockbuster store. Instead of going to the theatre and spending a fortune on popcorn, you simply drive to the store and rent a movie DVD for a week. Cheap and easy!
Not only does it benefit viewers, but VOD also allows organizations to create content that stays relatively forever, thereby extending the life of the video content. More on this later in the blog. Stay tuned!
Both video on demand and live streaming are popular means of delivering video content to your viewers. While it may seem to you that we have pitted them against one another, there is no clear winner here. In fact, in many cases, both complement each other.
The difference between the two technologies lies in how video content is consumed. Think of it as a restaurant – where you can either dine in or take away. In VOD, you can watch videos anytime, like a takeaway order, while live-streamed content is consumed right there in real time, just like dine-in.
Another difference lies in the time of feedback. Video on demand offers delayed feedback from the audience, while instant feedback is obtained through live streaming.
Finally, you can access an on demand video as many times as you want. However, this is not true for live streaming.
By the way, VIDIZMO EnterpriseTube allows you to host both live and on demand video content.
Now, let’s move on to discuss video on demand platforms briefly.
So far, we have discussed video on demand as a useful medium for enterprises. However, one question remains: How and where can an on demand video be accessed? The answer lies in a VOD platform.
A video on demand platform is used to create, upload, host, analyze, and securely share video content and digital media – all from a centralized platform. A VOD platform allows you to host valuable video content that helps you accomplish business goals and drive results.
Read our comparison blog on the 10 best video on demand (VOD) platforms.
Since we are done with understanding what video on demand platforms are, it is time to look at the benefits of VOD.
Since 1990s, developments in compression technology such as DCT and ADSL paved the way to practically introduce VOD services.
In 1994, The Cambridge Digital Interactive Television trial included a major VOD service, supplying access to 250 homes and schools connected to the Cambridge Cable network.
The trial ran at the speed of 2Mbps which was later increased to 25 Mbps. BBC and Anglia Television offered content. Although it proved to be practical, the project concluded in 1996 due to great difficulty in sourcing content.
Virgin Media (formerly Cable TV providers Telewest and NTL) introduced VoD services in 2005 by the name of Sky by broadband (Later renamed to SkyAnytime on PC).
It used a peer-2-peer approach which means that video content comes from multiple system users who already downloaded the content.
The European Audiovisual Observatory reported 142 VoD paying services in 2006 across Europe, which rose to 650 by 2009.
Later, businesses began to look for alternatives because platforms at the time had limited features like lack of customization, loss of content ownership once it was publicly shared, and secure sharing to internal stakeholders.
To meet this gap, professional-grade VoD options became prominent in the marketplace such as VIDIZMO, Kaltura, Wistia, Vimeo and Muvi.
Later, businesses began to look for alternatives because platforms at the time had limited features like lack of customization, loss of content ownership once it was publicly shared, and secure sharing to internal stakeholders.
To meet this gap, professional-grade VoD options became prominent in the marketplace such as VIDIZMO and other video on demand platforms.
Video is one of the most immersive media formats since it merges audio, visuals, and motion to create a rich viewer experience.
Research suggests that people tend to remember 95% of the message conveyed in the video content as opposed to 10% when reading something.
Needless to say, video on demand hosted on VOD platforms offers many more benefits, discussed as follows:
Almost 70% of video content is consumed on mobile devices, which suggests that many people enjoy watching videos on the go. However, that doesn’t mean people have stopped watching videos on their computers, laptops, or tablets.
A video on demand platform ensures that the video content can be played on any device, thanks to encoding.
Internet bandwidth conditions don’t always remain the same. However, that shouldn’t stop you from getting your message across. Managing a remote workforce whose home Internet is shaky? That shouldn’t be a problem.
With transcoding, a video library platform allows you to make video playable even in low Internet bandwidth conditions by creating multiple renditions (240p, 360p, 480p, 720p, 1080p, and beyond).
With a video on demand platform, gaining a greater audience reach is not a hassle. Video content stored on an SEO-friendly video library platform holds the power to get discovered by search engines like Google and gain a wide viewership.
In addition, through media embedding, you can ensure that your video content reaches far and wide by capitalizing on the power of other websites. Looking to attract potential talent from multiple regions? You know the drill—create enticing video messaging that goes beyond borders.
Worried about whether your videos are performing well? No worries, as a VOD platform allows you to track the performance of your video content. The question is how.
With a video on demand platform, you can track engagement trends, analyze the audience, see in which regions your videos are more popular, get user-level insights, and more, that too in real time.
Visually appealing videos alone are not enough to create a unified brand experience. It also matters where they are hosted and made available for the viewers to see.
With a custom VOD platform, you can showcase your brand identity to your audience by adding your logo, font, colors, thesaurus, and custom URL and applying custom CSS. Always remain on the top of the mind of your audience!
It is highly important to make your content accessible to all. Otherwise, get ready to be slapped with hefty fines for non-compliance with accessibility standards like Section 508, the Americans with Disabilities Act (ADA), Web Content Accessibility Guidelines (WCAG), etc.
An on demand video platform can help you make your media accessible to all through automatic transcription and translation, closed captioning (CC), and more.
People’s attention span is getting shorter. This means that it has become increasingly difficult to hook the audience. However, you can make your video content interactive and engaging through a video on demand platform.
By adding in-video quizzes, forms, and handouts, you can ensure that your audience remains interested throughout the length of the video.
Fearing about your internal communications getting leaked to the public? Getting a panic attack thinking that your patient-nurse communications videos might get out and violate HIPAA standards? With a secure VOD platform, this won’t be possible.
Video on demand secured with role-based access control, multifactor authentication (MFA), custom security policy, configurable retention, single sign-on (SSO), etc., ensures that your data integrity remains unharmed.
Not only this, but you can share video content securely with others by creating temporary shareable links using URL tokenization.
A folder structure is crucial for keeping video content organized. With effective category access rights management, you can create folder structures to secure and organize your video content and digital media.
After all, as people say, data security is of paramount importance, and so is organizing your data. Isn’t it?
Who has the time to search for a specific portion of an hour-long video? No one, right? Thanks to an AI-powered on demand video platform, your file search costs can be significantly reduced.
With AI-powered search through AI-generated tags, faceted search, objects, and text appearing inside the video, etc., it becomes super easy to pinpoint the specific part of the video.
Video on demand (VOD) is a technology that allows people to watch videos whenever they want, instead of waiting for a specific time like traditional TV.
With the rise of streaming services like Netflix and YouTube, VOD has become a big part of our daily lives. Whether it's for watching movies, learning something new, or even training employees, VOD is everywhere.
In this section, we’ll share some cool facts about how VOD works and why it's so popular! You'll learn about how many people use VOD, how much time they spend watching, and why it’s changing the way we watch videos.
The global Video on Demand (VOD) market was valued at $97.19 billion in 2023 and is projected to reach $399.05 billion by 2032, growing at a CAGR of 17.0% (Fortune Business Insights). This growth is driven by increasing consumer demand for on-demand entertainment, corporate training, and digital education.
Streaming platforms have significantly impacted traditional TV consumption. In 2024, 44.2% of total TV time worldwide is spent on streaming services (Statista). Consumers prefer flexible, on-demand content over traditional scheduled programming.
By 2029, the number of VOD users is expected to reach 1.8 billion globally (Statista). This rise is fueled by the expansion of smart devices, high-speed internet, and affordable subscription plans.
Despite the popularity of short-form content, 61% of viewers prefer videos longer than two minutes, indicating a strong audience for in-depth content, documentaries, and online courses (MarketingScoop.com).
Nearly 70% of video content is consumed on mobile devices, reflecting the shift towards on-the-go entertainment and learning (MarketingScoop.com). This has encouraged VOD platforms to optimize content for mobile accessibility.
Approximately 82% of internet users watch video content weekly, with an average viewing time of 21 hours per week (MarketingScoop.com). This highlights the importance of video as a primary medium for content consumption.
SVOD platforms like Netflix, Disney+, and Amazon Prime Video dominate the market. The SVOD segment alone is projected to be valued at $108.5 billion in 2024 as more users opt for ad-free streaming (Statista).
VOD is not just for entertainment—corporate training and internal communications account for a significant share of enterprise video consumption. Platforms like VIDIZMO EnterpriseTube help organizations securely share video content with employees, partners, and stakeholders.
Modern VOD platforms use AI-driven content recommendations, auto-captioning, and facial recognition to enhance user experience. AI-powered metadata tagging also improves video searchability, making it easier to find relevant content.
Studies show that people remember 95% of a message when watching a video, compared to just 10% when reading text (Forbes). This makes VOD an essential tool for education, marketing, and corporate training.
With VOD adoption increasing across industries, businesses and content creators must leverage secure, scalable, and AI-powered platforms to meet evolving audience expectations.
What is Video on Demand (VOD)? Video on demand (VOD) is a service that allows users to watch video content at their convenience, without needing to adhere to a scheduled broadcast. It has revolutionized how we access and consume media, from entertainment to business training.
VOD vs. Live Streaming VOD allows viewers to watch content anytime, while live streaming delivers real-time broadcasts. Both serve different purposes and can complement each other depending on the context, whether for events or entertainment.
Key Features of VOD
Anytime, Anywhere Access: Play videos on any device, even with poor internet speeds.
Scalability: Grow your video library without worrying about storage.
Interactivity & Security: Add quizzes and ensure secure access with encryption and role-based controls.
VOD Benefits for Businesses
Enhanced Engagement: Videos are more engaging and memorable compared to text.
Compliance: VOD platforms can ensure content accessibility for all users, complying with laws such as ADA and Section 508.
Performance Tracking: Analyze viewer behavior to optimize content strategies.
Popular Use Cases of VOD
Corporate training
Internal communications
Customer education
Entertainment and media distribution
Choosing the Right VOD Platform A robust VOD platform, like VIDIZMO EnterpriseTube, can help businesses securely host, manage, and share video content while ensuring scalability and compliance with legal standards.
Actionable Insight: To maximize the value of your video content, implement a reliable and secure VOD platform. Explore options like VIDIZMO EnterpriseTube to centralize, analyze, and protect your videos.
Recognized by Gartner, VIDIZMO EnterpriseTube is an AI-powered video on demand platform for securely hosting, analyzing, and sharing video content and digital media.
Laced with the following capabilities, EnterpriseTube makes your on demand video experience seamless:
The journey of video on demand (VOD) from its early days in the 1990s to today’s AI-powered streaming platforms highlights its growing influence on content consumption.
With businesses and individuals increasingly relying on VOD platforms for entertainment, education, and corporate communication, the demand for secure, scalable, and feature-rich solutions continues to rise.
As the VOD market expands, selecting the right platform is essential for businesses looking to stream, manage, and monetize video content effectively.
Whether for training, marketing, or internal collaboration, a secure VOD platform ensures accessibility, compliance, and engagement.
Explore how VIDIZMO EnterpriseTube can help your organization enhance video content management—start your free trial today.
What is Video on Demand (VOD)?
Video on Demand (VOD) is a streaming technology that allows users to watch videos whenever they choose, without being tied to a fixed broadcast schedule. It enables access to pre-recorded content on various devices, including smartphones, tablets, and smart TVs.
How does Video on Demand work?
VOD platforms store video content on cloud servers or data centers. When a user selects a video, it is delivered via the internet using adaptive bitrate streaming, which adjusts video quality based on the user’s internet speed for smooth playback.
What is the difference between Video on Demand and live streaming?
VOD content is pre-recorded and available on demand, while live streaming happens in real-time. Live content is typically not available for rewatching unless recorded, whereas VOD allows users to access videos at their convenience.
What are the main types of Video on Demand platforms?
There are three primary types of VOD platforms:
Why is Video on Demand becoming so popular?
The demand for on-demand content continues to rise, with the global number of VOD users projected to reach 1.8 billion by 2029, according to Statista. The convenience of accessing content anytime, anywhere, and across multiple devices contributes to its increasing popularity.
How do businesses use Video on Demand?
Businesses leverage VOD platforms for corporate training, customer education, product demonstrations, and internal communications. Enterprise-focused VOD platforms offer secure video hosting, ensuring that sensitive content is accessible only to authorized users.
Can Video on Demand content be monetized?
Yes, VOD platforms offer various monetization models, including:
What is the best Video on Demand platform for businesses?
Enterprise-grade VOD platforms such as VIDIZMO EnterpriseTube, Microsoft Stream, and Vimeo OTT provide businesses with advanced security, access controls, analytics, and integration with learning and content management systems.
How does VOD ensure content security and compliance?
Secure VOD platforms offer encryption, role-based access, multi-factor authentication, and compliance with regulations such as GDPR, HIPAA, and FIPS, ensuring that video content remains protected from unauthorized access.
What’s next for Video on Demand technology?
The future of VOD includes AI-driven content recommendations, interactive videos, and improved video compression for higher-quality streaming. Businesses and content creators are also exploring personalized and immersive video experiences to enhance engagement.