Understanding VOD vs live streaming

October 22, 2024
5 Min
Video Education
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With so many ways to watch videos today from catching up on TV shows to experiencing live sports two options stand out: Video on demand (VOD) and Live streaming.

Did you know that over 80% of viewers prefer video on demand for its convenience, while nearly 70% tune in to live streaming for real-time excitement. In this blog we will discover how these popular options stack up in today’s streaming landscape.

What is VOD streaming?

Video on demand is access video content at any time, rather than being tied to a specific broadcast schedule. Video on demand (VOD) offers flexibility, allowing users to watch pre-recorded content at their convenience.

It is like having a huge library of movies and shows right at your fingertips. VOD is a way to stream your favourite shows and movies whenever it suits you, just like flipping through channels on a TV, but with a much bigger choice and control over what you see.

  • Watch whenever you want: Pick any show or movie from the library and start watching whenever it fits your schedule. For example Netflix, Prime, YouTube etc.
  • Pause and rewind: Need a break or missed a part? No problem. You can pause, rewind, or fast-forward as you like.
  • Choose what to watch: Browse through categories, see recommendations, and choose exactly what you want to watch.‍

Video on demand (VOD) offers flexibility, allowing users to watch pre-recorded content at their own convenience.


For users

Entertainment purpose they watch movies, shows and videos for fun. For educational content they learn new things with videos on different subjects. Also useful to get informative content and updates on various topics.

For organization (corporate)

Internal training use videos to help employees learn new skills or information. Creating step-by-step guides (tutorials) to help staff understand processes or tools. Also useful for walk-throughs which shows employees how to complete tasks or use systems through detailed video guide.

Video-on-demand (VOD) workflow:

Ingestion: Content providers upload pre-recorded videos to the VOD platform. Metadata (such as titles, descriptions, and categories) is associated with each video. Videos are transcoded into various formats suitable for different devices (e.g., smartphones, smart TVs).

Storage: Transcoded video files are stored in a content repository. Content delivery networks (CDNs) cache popular videos closer to viewers for efficient delivery.

User authentication and authorization: Users sign in to access the VOD service. Authorization ensures that users can only view content they are allowed to access.

Content Delivery: When a user requests a video, the VOD system retrieves the relevant file from storage. CDNs distribute the video efficiently to minimize latency.

Playback: The video player decodes and renders the video stream. Users can control playback (play, pause, seek) using familiar controls.

Analytics and recommendations: The VOD platform collects data on user behaviour (views, likes, watch time). Algorithms analyse this data to provide personalized recommendations.

APIs for VOD (Video on demand)

VOD API: A VOD API allows developers to manage video content libraries, enabling uploads, transcoding, playback control, and metadata management for on-demand videos. This API is essential for organizations offering video streaming services like Netflix or Hulu.

Content management API

Manages video content by enabling users to upload, store, and organize videos on the platform. This API allows users to add metadata such as titles and descriptions and categorize content for better organization.

Examples: Vimeo API, Brightcove API, Kaltura API.

Video transcoding API

Converts video files into multiple formats and resolutions to ensure compatibility across devices like mobile phones, desktops, and smart TVs. For instance, users can upload a high-definition video, and the API will transcode it into formats like 1080p, 720p, and 480p for optimized viewing.

Examples: AWS Elemental MediaConvert, Zencoder API, Bitmovin API.

Content delivery API (CDN integration)

Enhances global video delivery by utilizing Content Delivery Networks (CDNs) to cache content closer to end-users, minimizing latency and ensuring smoother playback. This improves video accessibility and reduces buffering, especially for users in different regions.

Examples: Cloudflare Stream API, Akamai CDN API, Fastly API.

User authentication and authorization API

Controls user access to specific content by ensuring only authorized users can view certain videos, often based on subscription levels or permissions. This secures video content, restricting access to appropriate users.

Examples: Auth0 API, Okta API, Firebase Authentication.

Playback API

Manages the streaming and playback of video content, offering features like play, pause, fast-forward, and rewind. This API allows video players to be embedded into websites or apps, providing full control over the playback experience.

Examples: JW Player API, Video.js API.

Analytics API

Tracks user interaction with video content, including views, watch time, likes, and recommendations. This data helps in understanding user behaviour and optimizing content strategy to improve engagement.

Examples: Google Analytics API, Wistia API, YouTube Data API.

Different types of VOD

Model Description Payment Advantages Disadvantages Examples
AVOD (Advertising VOD) Free but with ads before, during, and after content. None (funded by ads) Free for viewers Lower revenue per user compared to other models YouTube
SVOD (Subscription VOD) Monthly or yearly fee for unlimited library access Subscription fee Predictable revenue stream Competitive market with many options Netflix, Hulu, Disney+
TVOD (Transactional VOD) One-time fee to rent or purchase individual pieces of content Per-item fee Revenue certainty for each piece of content sold Lower potential audience compared to subscription model iTunes, Amazon Prime Video (rentals), Google Play Movies
PVOD (Premium VOD) Recently released or highly anticipated movies at a higher price point. Per-item fee Generate additional revenue from existing subscribers Higher price point, people may choose not to pay for it. Apple TV+
NVOD (Near VOD) Content available for purchase or rental shortly after broadcast. Per-item fee Leverages existing content and infrastructure Limited selection of content Often offered by cable or satellite providers

VOD has gained momentum in recent years. Increasingly, consumers prefer to watch video on personal and mobile devices. Since cinemas were closed during the COVID-19 pandemic, many potential movie blockbusters went directly to VOD so that viewers could stream the movie of their choice on demand in the safety of their homes. Some of the examples include Amazon Prime, Netflix, YouTube etc.

This bar graph shows the increase in on-demand video views for major platforms from 2019 to 2024.

  • This bar graph shows the increase in on-demand video views for major platforms from 2019 to 2024.
  • YouTube leads with the highest view counts across all years, showing substantial growth from 800 million views in 2019 to 2 billion views in 2024. This platform demonstrates the strongest upward trend, reflecting its dominant position in the market.
  • Netflix also shows a steady increase in views, starting at 600 million in 2019 and reaching 1.5 billion by 2024. While it grows consistently, it trails behind YouTube in total views.
  • Amazon prime video exhibits significant growth from 400 million views in 2019 to 1.2 billion views in 2024. Although it starts with lower view counts, it shows a strong upward trajectory.
  • Disney+ starts with the smallest view count of 300 million in 2019 but shows notable growth, reaching 1 billion views by 2024. Its growth reflects its increasing popularity and expanding content offerings.

What is Live streaming?

Live streaming allows you to watch events in real-time over the internet, much like tuning in to a live sports game or concert as it unfolds. It involves broadcasting video and audio content instantly to viewers, providing an interactive and engaging experience. Unlike pre-recorded videos, live streaming delivers events as they happen, enabling audiences to participate and respond in real time.


With Live streaming, you:

  • Watch in real-time: The content is happening live, and you see it as it unfolds.
  • Join live events: Participate in live events like sports games, news broadcasts, or interactive shows.
  • Limited control: You usually cannot pause or rewind the stream. You get what is happening right now.‍

Technical aspects of live streaming

Encoding: Encoding converts live video into a digital format suitable for streaming. Tools like OBS Studio, Wirecast, and FFmpeg are commonly used, along with protocols such as RTMP for ingesting and HLS for delivery. Proper encoding ensures high video quality across various platforms and devices.

Streaming: Streaming involves broadcasting the live feed through services like YouTube Live or Twitch. Developers integrate with these platforms, APIs to manage streams and use protocols like RTMP and HLS to deliver content efficiently, minimizing buffering.

Content Delivery Network (CDN): CDNs distribute the stream globally, reducing latency and handling high traffic loads. This enhances stream delivery speed and improves the viewer experience.

APIs and SDKs: Integration involves using APIs from platforms like YouTube live API or Twitch API for stream management, and SDKs like JW Player or Video.js for embedding and controlling playback in apps or websites.

Security: Protect live streams with encryption methods such as RTMPS or HLS with AES. Implement authentication to restrict access to authorized viewers, preventing unauthorized use and piracy.

Latency management: Minimize delay with low-latency protocols like Low-latency HLS or WebRTC to ensure streams are as close to real-time as possible, which is crucial for live events.

Error handling: Develop error recovery strategies, including automatic reconnections and fallback servers, to maintain stream stability and quickly address issues.

UI design and mobile optimization: Design engaging interfaces with features like live chat and interactive overlays. Ensure streams are optimized for mobile devices with responsive design and thorough testing.

Testing and debugging: Conduct pre-stream tests, simulate high traffic, and use monitoring tools to identify and fix issues, ensuring a smooth streaming experience for viewers.

APIs for live streaming

Live streaming API: Live streaming APIs allow developers to initiate, control, and monitor live broadcasts. These APIs, provided by platforms like YouTube Live or Twitch, enable integration with third-party apps for managing streams, scheduling broadcasts, and accessing viewer analytics.

Different APIs are used for Live streaming to manage and deliver content effectively. Here's an overview of the APIs used for each type:

Live stream encoding API

Encodes live video into streamable formats in real-time, allowing for seamless broadcasting. For example, a live feed is captured and converted into digital streams using protocols such as RTMP or HLS, ensuring smooth live streaming.

Examples: Wowza Streaming Cloud API, OBS (Open Broadcaster Software) API, AWS Elemental MediaLive API.

Live streaming management API

Facilitates the management of live stream events, including starting, stopping, and scheduling broadcasts. For instance, you can schedule a live event to start at a specific time and stream it simultaneously to multiple platforms.

Examples: YouTube Live Streaming API, Twitch API, Facebook Live API.

CDN integration API for live streaming

Reduces latency and enhances the smooth delivery of live streams by distributing content globally through Content Delivery Networks (CDNs). This ensures that even with high viewer traffic, stream quality is maintained via cached content.

Examples: Cloudflare Stream API, Akamai Adaptive Media Delivery API.

Real-time chat and interaction API

Enables real-time engagement features such as live chat, polls, and Q&A during live events. For example, viewers can interact with streamers via chat, vote on polls, or submit questions in real-time, enhancing audience engagement.

Examples: Twilio Programmable Chat API, Sendbird API, PubNub API.

Security API

Ensures the security of live streams by providing encryption and restricting unauthorized access. For example, RTMPS or AES encryption can be used to secure streams and protect against unauthorized viewing.

Examples: Wowza Secure Video Delivery API, Cloudflare API for Secure Streaming.

Analytics API for live streaming

Collects real-time data on viewership, interactions, and performance metrics during live events. For instance, you can track live viewer counts, engagement through chat, and overall stream quality to monitor and improve the streaming experience.

Examples: YouTube Analytics API, Twitch Insights API, Mixpanel API for real-time analytics.

Adaptive bitrate streaming API

Automatically adjusts video quality based on the viewer’s internet connection to minimize buffering and optimize the viewing experience. For example, users with slower internet connections will receive lower-quality streams, while faster connections deliver higher-quality video.

Examples: Wowza Adaptive Bitrate API, Bitmovin Live API.

Most Viewed Live Streaming Platforms in Social Media (2024)

This bar graph illustrates the number of views (in millions) for the most popular live streaming platforms on social media as of 2024. YouTube live leads with the highest views, followed by Twitch, Facebook live, Instagram live, and TikTok live.

YouTube live: 800 million views

Twitch: 700 million views

Facebook live: 500 million views

Instagram live: 400 million views

TikTok live: 300 million views

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Know more

Live streaming for business

Webinars: These are live online sessions designed to educate or inform. They provide an opportunity to share knowledge and deliver training directly to a real-time audience.

Conferences: Allows people to attend and watch presentations remotely. This can help you reach a global audience, increase attendance, and provide content to those who cannot be physically present.

Interviews: Can involve discussions with experts, influencers, or team members. This can generate excitement and engagement allowing viewers to interact.

Live sales and e-commerce: Can be used to highlight products in real-time, demonstrate how they work and offer exclusive deals. It can drive sales by offering exclusive promotions.

Here are few types of live streaming

Social media live streaming platforms: Facebook live, instagram live, twitter (periscope), tiktok live.

Description: Used for real-time engagement with followers. Often features personal updates, live events, or interactive Q&A sessions.

Typical uses: Personal updates, live events, influencer content, and interactive sessions with followers.

Game live streaming platforms: Twitch, YouTube gaming, Facebook gaming.

Description: Focuses on live gameplay, where gamers stream their gameplay sessions, often including commentary and interaction with viewers.

Typical uses: Game playthroughs, eSports tournaments, and gaming commentary.

Professional streaming platforms: LinkedIn live, specialized online seminar platforms like Zoom, Webex.

Description: Used for business purposes, including webinars, virtual conferences, and professional presentations.

Typical uses: Business meetings, professional webinars, industry conferences, and product launches.

Educational streaming platforms: Coursera live, Udemy live.

Description: Provides live educational content, including lectures, tutorials, and interactive learning sessions.

Typical uses: Online courses, live tutoring, educational workshops, and interactive lectures.

News and media streaming platforms: CNN live, BBC news, Twitch for news.

Description: Used for broadcasting live news updates, interviews, and breaking news events. Often features a team of reporters and anchors.

Typical uses: Breaking news, live reports, interviews, and news analysis.

Virtual reality (VR) streaming platforms: Facebook horizon

Description: Provides a VR environment where viewers can experience events or interact with others in a virtual space.

Typical uses: Virtual events, VR meetups, and immersive experiences.


VOD vs. Live streaming

The main difference between Video-on-demand (VOD) content and a live stream is that VOD content is recorded and edited before you view it, and live content is streamed in real time. VOD content is available on demand, meaning viewers can watch it whenever and wherever they want once the content is made available to them. This is not the case with live streaming, where the content needs to be watched in real-time. Thankfully, platforms like FastPix, lets you record and save your live streams to make them available on demand.

Live streaming delivers real-time content as it occurs. Live streams can be a wonderful way to share information and connect with customers, employees, stakeholders in real time.

Compared to VOD, live streaming demands a more complex technical setup, once the content is live-streamed, there is no opportunity for editing. Once the stream is complete, you can upload it to a site which viewers can access. While VOD is better for video content that follows a script you can plan, record, edit and fix the video before you release it.

Compared to VOD, live streaming demands a more complex technical setup, once the content is live-streamed, there is no opportunity for editing. Once the stream is complete, you can upload it to a site which viewers can access. While VOD is better for video content that follows a script you can plan, record, edit and fix the video before you release it.

Aspect Video on demand (VOD) Live streaming
Content availability Pre-recorded content is available for playback on-demand. Content is broadcasted and viewed in real-time as it happens.
Timing Users can access content at their convenience, anytime. Content is viewed as it is being broadcasted, in real-time.
Interaction Limited or no interaction with content creators during playback. Potential for real-time interaction, such as live chat or polls.
Flexibility Flexible viewing schedule, users can pause, rewind, or fast forward. Viewing is constrained to the broadcast schedule, limited control over playback.
Content diversity Vast library of pre-recorded content, including movies, TV shows, etc. Primarily focused on live events, concerts, sports, news, etc.
Monetization opportunities Subscription-based models, pay-per-view, or ad-supported. Advertisements, sponsorships, pay-per-view, and subscription models.

Final thoughts

With FastPix, managing both VOD and live streaming is easy. Our platform simplifies the process, making it straightforward to handle all your video needs. Whether you’re broadcasting live or managing a library of on-demand content, FastPix has the tools to help you out.

Why not try it and see how FastPix can transform your video workflow?

Click here to start using FastPix for free

FAQs

How much does it cost to live stream an event?

Live streaming on platforms like YouTube or Facebook is free, but using dedicated platforms can incur costs based on factors like encoding, storage, and bandwidth. For small events, pricing typically starts around $50, but for larger audiences or higher-quality streams, costs can increase significantly.

What are the APIs for live streaming an event?

APIs for live streaming events include FastPix live API, Wowza Streaming Engine API, and Vimeo Live API, allowing developers to enhance their applications with live streaming capabilities.

What are the APIs for storing and streaming videos?

There are several video hosting platforms that allow you to store and stream videos efficiently. Some options include FastPix, AWS Media Solutions, Google Cloud, and many more.

What are the APIs used for OTT?

APIs used for Over-The-Top (OTT) streaming include the YouTube Data API, Vimeo API, AWS Elemental Media Services and the Cloudflare Stream API. Additionally, FastPix offers a user-friendly API for managing and streaming high-quality videos, making it a great choice for OTT applications.

What are the APIs for building a live app?

APIs for building a live app include FastPix for low latency streaming and engagement, Agora SDK for interactive live video, and Twilio Video API for robust video conferencing solutions.

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