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What Is Video on Demand (VOD)? The Complete Streaming Guide

Learn how VOD works, compare rental prices across top platforms, and avoid hidden digital licensing traps.

A screenshot of the Prime Video VOD page with text asking, "What Is Video On Demand?"
(Image; CableTV.com)

VOD means video on demand — it’s the way most people watch TV and movies nowadays. Rather than rely on a fixed broadcast schedule, VOD is a way to watch a piece of video content over a digital platform whenever you want.

There are tons of VOD options out there nowadays, including subscription-based streaming platforms, movie rental platforms, and free services like YouTube and Tubi. We explain it all below.

How does video on demand work?

Here are the three different types of VOD and how they work:

  • Transactional Video on Demand (TVOD): Services such as Prime Video and Apple TV let you rent or even buy a video to watch whenever you want. This is the type of VOD we’ll focus on for this article.
  • Subscription Video on Demand (SVOD): Streaming platforms, including Netflix, HBO Max, and Disney+, require a monthly subscription for access to their content libraries.
  • Advertising-based Video on Demand (AVOD): No need to sign up for services like Tubi and The Roku Channel, which let you surf hundreds of FAST (Free Ad-Supported Streaming Television) channels.

What are the pros and cons of video on demand?

Video on demand (VOD) gives you seemingly limitless options for anything you want to watch. But you may not necessarily “own” a movie or TV show even if you “purchase” it.

Video on demand: The pros and cons

Pros:

  • Watch stuff any time
  • Get early access to new releases
  • Rewind and fast-forward to your liking
  • Pay only for what you want

Cons:

  • Watch out for terms of service
  • Try to limit your options

Without needing shelves or storage bins to store DVDs or Blu-rays, you can watch the latest blockbuster, a niche documentary, or a decades-old sitcom any time you want.

Pro tip: Ever heard of early-access VOD? It means you can rent ($19.99) or buy ($24.99) select new releases while they’re still in theaters. This is a great option if you prefer to watch at home.

Unfortunately, even if you “buy” a digital movie or TV series, you may simply be purchasing a license to access that piece of content — a license that can be rescinded if your platform feels like it, making your beloved titles disappear without warning. That’s one reason why DVDs and Blu-ray discs have an enduring appeal: They’re yours to keep, for as long as you want.

Here are some VOD hot tips to know

It’s easy to know the basics of how video on demand works, but there are some things you may want to know to get the most out of your streaming experience.

You can redeem digital VOD codes from 4K Blu-ray purchases

If your Blu-ray purchase includes a VOD code, you can use it to redeem a digital version of your movie. The code will work on a supported platform or digital movie library, and you can simply punch in the code to add the movie to your collection.

Pro tip: Use the Movies Anywhere app to set up an account where you can collect all your digital movies from multiple VOD retailers in one place. You can also link Movies Anywhere to apps like DIRECTV to stream content seamlessly in one place.

Your VOD purchases may come with restrictions

According to consumer specialists and the U.S. government, ownership can be a tricky thing when it comes to digital products like video content. Even if you own a movie that you purchased on Prime Video, for example, you may still need an active account to watch it.

Many online purchases that have been copyrighted — such as movies, TV shows, and music — are encoded with Digital Rights Management (DRM) software, which restricts how and where you can watch, copy, and distribute a piece of content. In some cases, what you’re purchasing is actually just a license to access content, rather than a hard copy or digital copy of that content.

Cable and satellite providers also offer VOD

Back before streaming became the dominant format for watching stuff, cable and satellite TV providers offered a service called “pay-per-view,” which gave you access to exclusive content available for an extra fee. It was (and still is) a particularly popular way to watch marquee events in boxing and mixed martial arts.

Now known simply as video on demand, pay-per-view is still available from cable companies like Xfinity and Spectrum, as well as satellite carrier DIRECTV.

Here are the best VOD options for your viewing pleasure

Service Rental prices Purchase prices Estimated library size (titles)* Video resolution
Prime Video $1.99–$19.99 $4.99–$24.99 21,000+ Up to 4K UHD
Apple TV $3.99–$19.99 $9.99–$24.99 49,000+ Up to 4K UHD
Fandango at Home $0.99–$19.99 $4.99–$24.99 300,000+ Up to 4K UHD
Google TV $1.99–$19.99 $9.99–$24.99 400,000+ Up to 4K UHD
Plex $3.99–$18.99 $4.99–$21.99 50,000+ Up to 4K UHD
YouTube, YouTube TV $1.99–$19.99 (higher for some new titles) $4.99–$19.99 Tens of thousands Up to 4K UHD

*Most of these platforms do not release official figures for how many titles they have, so these estimates are based on news reports, business analysis, and other research.

Best User Experience: Prime Video

Prime Video is arguably the best-known service for renting and purchasing VOD titles, and for good reason — it’s widely accessible, doesn’t require you to be a Prime member to rent or purchase, and it’s easy to surf for movie and TV options on the website. The Prime Video homepage is super easy to navigate, and the process of renting or purchasing is quick and intuitive.

Cheapest Rentals and Purchases: Fandango at Home

You’re going to see similar prices for online rentals no matter what platform you’re using, but Fandango at Home has some of the best deals you can get. Head to the Deals page on its website and you’ll find rental prices for as little as $1, weekly purchases starting at $5, and all sorts of mix-and-match and bundle offers where you can build up your library at a bargain price. Fandango at Home (formerly known as Vudu) also offers a lot of titles to stream for free, which you can watch with a free account.

Best Resolution: Apple TV

Although all of these platforms have movies available at video resolution up to 4K UHD, Apple TV has by far the most reliable and enjoyable experience when it comes to high-quality video and sound. The service automatically plays videos at the highest-available resolution when you purchase and rent them, and 4K UHD is available at no extra cost for monthly subscribers.

What is video on demand (VOD) FAQ

Do you have to pay for VOD?

You commonly have to pay for VOD titles, such as movies and TV shows, which you either rent or purchase in a one-time transaction.

What is an example of a VOD?

Examples of video on demand (VOD) include renting or buying a movie on Prime Video or other VOD retailers.

How do I access VOD?

You can access video on demand (VOD) via your smart TV, computer, smartphone, tablet, or streaming TV device.

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