What is HVOD? Hybrid Video on Demand: Benefits and Monetization

It would be great to have a streaming model that combines the advantages of all the rest into one flexible monetization model. Is this too much to ask? Not really, because the model described already exists, and it's called Hybrid Video on Demand (HVOD).

HVOD lets you get the best of every monetization model by granting personalized content access to your diverse audiences.

There’s more to say about this versatile revenue model, so next, we’ll cover the definition of HVOD. Are you in?

Key Takeaways

• HVOD blends ad-based income, subscription, and pay-per-view fees, allowing you to create revenue streams to suit various audience preferences.
• Offering a mix of free and premium content increases user engagement and satisfaction, allowing viewers to choose how to access your content.
• By catering to subscribers and ad-supported viewers, HVOD expands your audience reach, boosting market penetration.
• An HVOD model provides valuable metrics, guiding more targeted content strategies and personalized experiences.
• Adopting an HVOD approach helps optimize content distribution and monetization without incurring excessive costs.

What is HVOD?

Hybrid video on demand (HVOD) is an innovative video delivery model that combines different monetization models, such as Subscription Video on Demand (SVOD) and Advertising Video on Demand (AVOD).

With HVOD, you can adjust the content accessibility to your users’ needs, letting them choose whether to subscribe to a package or just watch an ad to get free access to the content.

Your user wants a monthly subscription to enjoy ad-free access? Deal. They want to watch a movie for free? Alright, offer ad-based access. Your user wants to buy premium content (let’s say a new movie release)? No problem; let them buy or rent with Transactional Video on Demand (TVOD).

So, what’s the catch for you? Easy: You appeal to different audience preferences, which means you grow your audience by providing various ways to access and watch your content. By the way, with this method, you don’t just expand your reach, you attract users who are actually interested in your service.

HVOD Examples

• Hulu: Offers both ad-supported and ad-free subscriptions.
• Peacock: Has a free ad-supported tier, a paid tier with fewer ads, and a premium ad-free tier.
• YouTube: Free content with ads (AVOD), plus YouTube Premium for ad-free content (SVOD), and paid movies (TVOD).

Benefits of HVOD

Here are the key benefits HVOD offers:

Multiple Revenue Streams

The HVOD system provides access to multiple revenue sources since you can combine various monetization models (e.g., SVOD+AVOD, TVOD+AVOD, etc.). Thus, you adopt a dual approach that diversifies your revenue streams and reduces the risks of relying on a single income source.

Broader Audience Reach

As already mentioned, HVOD helps you reach a larger audience. Some viewers may opt for an ad-free experience through subscriptions, while others may prefer free content containing commercials. The more options you provide, the more appealing your brand becomes to a broader audience, increasing its exposure and engagement.

Improved User Experience

HVOD allows for a customized user experience. Your subscribers can enjoy uninterrupted access to premium content, while ad-supported viewers can still access high-quality content for free. You provide flexibility that caters to diverse preferences, boosting customer loyalty and overall satisfaction. Plus, with this approach, you can enhance audience retention and word-of-mouth promotion (which you don’t have to spend a penny on).

Cost-Effectiveness

By using existing content resources across both income sources, you can boost the value of your content library without significant additional expenses. For example, offer different prices for the same content depending on whether it’s for rent, sale, or included in a subscription package.

Effective resource allocation enables targeted marketing and content creation efforts, which eventually improve your return on investment.

Data-Driven Personalization

With HVOD, you can analyze viewer preferences and behaviors. Access to detailed analytics helps you tailor your content, ad placements, subscription packages, and pay-per-view options to meet your target audience's needs. This increases user engagement and the effectiveness of advertising, multiplying your revenue gains.

Monetization Models in HVOD

Since HVOD includes elements from SVOD, AVOD, and TVOD, it offers their monetization opportunities too.

Here is a table showing the different monetization models you can get with HVOD:

Monetization Model	Description	Best For
Ad-Supported Tier	Offers content at a lower price (or free) with ads included.	- Cost-sensitive viewers - Expanding audience reach - Generating ad revenue
Premium Ad-Free Subscription	Charges a higher fee for access to ad-free content.	- Viewers who value an uninterrupted experience - Increasing subscriber lifetime value
Freemium Model	Provides regular content for free (with ads) and charges for premium/exclusive content or features.	- Encouraging trial - Upselling to premium - Balancing accessibility with monetization
Pay-Per-View Add-Ons	Offers transactional options (TVOD-style) within a subscription service for exclusive or new releases.	- Monetizing high-demand or early-access content - Users willing to pay extra for premium content
Tiered Subscriptions	Multiple pricing levels offering different combinations of content access, features, and ad experiences.	- Catering to diverse consumer preferences and budgets - Maximizing flexibility and customer reach

HVOD For OTT/IPTV Providers

HVOD is a must-have on Over-the-Top (OTT) and Internet Protocol Television (IPTV) platforms for a flexible and scalable content delivery and monetization approach.

As we already said, HVOD helps maximize income streams by reaching bigger audiences. This is a key factor for every OTT/IPTV provider. So, one great reason to implement HVOD is reaching broader and interested audiences. But, you don’t just attract new users, you also get to keep them engaged with the help of HVOD.

It enables personalized viewing experiences through data analytics. You can tailor content recommendations based on demographics and viewing preferences. This way, you increase user satisfaction and earn their loyalty.

Enough about how great HVOD can be for your business. Now you must be wondering how to get a HVOD model. No worries; inoRain can help you out! We provide businesses like yours with OTT services, including implementations for monetization methods like HVOD and more.

Don’t postpone your business success any longer, contact us to get your flexible revenue model right away.

Conclusion

By combining different revenue streams, HVOD gives you the flexibility to meet diverse audience needs and maximize your earning potential. Adopting HVOD boosts audience engagement and expands your reach to new demographic segments with personalized content experiences.

FAQs

What is HVOD?

Hybrid Video on Demand (HVOD) is a streaming model that combines multiple monetization methods, typically subscription-based (SVOD) and ad-supported (AVOD) options. It allows platforms to offer flexible viewing experiences and reach broader audience preferences.

Is HVOD popular?

Yes, streaming platforms are increasingly adopting HVOD to maximize audience reach and revenue. Services like Hulu, Peacock, and Netflix (with ads) offer flexible options—ad-supported tiers for budget-conscious users and premium ad-free subscriptions for others—to stay competitive in a crowded market.

How can I implement an HVOD model for my business?

To implement HVOD, review your content library and target audience. Consider partnering with an industry leader like inoRain, so you can manage data analytics, integrate subscription and ad-supported services, and handle content distribution.

What types of content are best suited for HVOD?

HVOD works with various content, including original series, live events, and niche offerings. A mix of free and premium content can help maximize revenue potential and cater to diverse audience preferences.