Julia Stoll
Research expert covering TV and video media
Transactional video-on-demand in the United States - statistics & facts
The transactional video-on-demand (TVOD) market has celebrated a comeback in recent years, in particular during the coronavirus pandemic. With movie theaters closed and people staying at home, this revenue model, in which viewers pay for each content title such as much-awaited blockbuster films, TV show episodes, and sporting events, benefited from premium first-run movies and shortened theatrical windows. Major studios are now making their movies available on streaming services earlier than usual, a move which is proving appealing to consumers. After a dip in 2022, the penetration rate of pay-per-view jumped to over 29 percent as of 2024 in the United States, which is the largest TVOD market worldwide. However, despite the user share continuing to grow, due to its transactional nature, TVOD platforms are less sustainable compared to business models with recurring revenues like SVOD or ad-supported services.
Though a focused model, TVOD offers considerable value for delivering exclusive and early film releases and suits viewers wanting premium access without subscription commitments. However, its reliance on individual purchases makes it inherently less stable than subscription-based models. Thus, with Amazon as a trailblazer, streaming platforms that integrate TVOD seamlessly with SVOD and ad-based models are likely to build a diversified revenue stream and enhance the user experience.
TVOD’s subcategories and how they are developing
U.S. consumer spending on TVOD remained unchanged during the past decade. The market’s most valuable segment, electronic sell-through (EST), which gives viewers permanent access to the purchased copy of a title, generated around 2.4 billion U.S. dollars in consumer spending in 2024, whereas VOD rental expenditures amounted to 1.6 billion dollars that year. In contrast, subscription streaming jumped to a value 13 times higher than both combined. Yet, a 2025 survey on premium transactions (PVOD) – a business model where consumers have early access to theatrical movies on VOD services – demonstrates the continued significance of straight-to-streaming premieres, for younger generations in particular. Around four in five U.S. Gen Zers and millennials stated to pay a premium fee to watch newly released movies online.Amazon is king of TVOD
Subscription-based services such as Disney+ and Max have benefited from the success of premium content titles, boosting their subscriber base rapidly. However, pay-per-view veteran Amazon Prime Video remains the go-to platform for renting or purchasing movies and TV shows online in the U.S. and Canada. By creating a “one-stop-shop” where users cannot only watch on a pay-per-view basis, but also consume ad-supported content as well as free and live TV channels and SVOD all on one platform, the e-commerce giant provides a unique offering.Though a focused model, TVOD offers considerable value for delivering exclusive and early film releases and suits viewers wanting premium access without subscription commitments. However, its reliance on individual purchases makes it inherently less stable than subscription-based models. Thus, with Amazon as a trailblazer, streaming platforms that integrate TVOD seamlessly with SVOD and ad-based models are likely to build a diversified revenue stream and enhance the user experience.
