Glossary term

HVOD (Hybrid Video on Demand)

What is HVOD?

HVOD is a video streaming model that combines multiple monetization methods like subscriptions, ads, and pay-per-view. It offers flexibility for users and maximizes revenue for content providers.

Key Features of HVOD

• Multiple Monetization Models: Combines SVOD, AVOD, and TVOD for flexible revenue streams.
• Tiered Access: Supports different content tiers based on user preferences or payment plans.
• Broader Audience Reach: Attracts both users who prefer free access and paying subscribers.
• Content Flexibility: Offers diverse content, including premium shows and free-to-access clips.
• Optimized Revenue: Balances ad revenue, subscription income, and pay-per-view earnings.
• Scalable Model: Suitable for both small platforms and large streaming services.
  
  

How Does HVOD Work?

Stage 1: Content Offering

The OTT platform provides a mix of free, subscription-based, and pay-per-view videos.

Stage 2: User Choice

Viewers choose how they want to access the content: free with ads, through a paid subscription, or by renting/buying content.

Stage 3: Access & Playback

Based on the user’s choice, the platform grants access and plays the content with or without ads.

Stage 4: Monetization

The service generates revenue through advertisements, subscription fees, or one-time payments.

Stage 5: User Experience

The platform may personalize content and recommendations based on viewing habits.

Technologies Behind HVOD

1. User Segmentation

The process of classifying users into distinct groups based on subscription status, viewing behavior, location, device type, or payment history.

Goal: Deliver personalized content, pricing, and ad experiences to each segment.

Examples:

Users with free access → see AVOD content with ads

Paid subscribers → access SVOD library without ads

Occasional users → prompted with TVOD offers for new releases

2. Content Access Control

A rules-based system that restricts or grants access to specific videos based on user entitlements.

Goal: Ensure only authorized users can view specific content based on their access level (free, subscriber, or one-time purchaser).

Examples:

SVOD content: only visible to logged-in subscribers

TVOD content: unlocked after payment

AVOD content: available to all, but with ads

3. Payment Processing

A secure and flexible payment infrastructure that supports subscriptions, one-time purchases, and upgrades.

Goal: Enable fast, reliable financial transactions with support for multiple payment methods and currencies.

Examples:

Monthly billing via Stripe or PayPal for SVOD

Credit card or mobile payments for TVOD purchases

Support for auto-renewals, trials, and refunds

4. Ad Insertion

The use of Dynamic Ad Insertion (DAI) or Server-Side Ad Insertion (SSAI) to deliver personalized ads during AVOD playback.

Goal: Monetize free users through targeted, non-disruptive ad experiences.

Examples:

Pre-roll, mid-roll, and post-roll ads

Personalized ads based on user profile and device

Real-time ad stitching into video streams

5 HVOD Platforms

1. Hulu

This OTT platform offers both ad-supported (AVOD) and ad-free (SVOD) subscription plans. It also features add-ons and rentals (TVOD) for premium content.

2. Peacock (NBCUniversal)

Provides a free tier with ads, a paid tier with fewer ads, and a premium ad-free tier. Occasionally, Peacock includes early access or exclusive titles for paid users.

3. Paramount+

Paramount+ has both AVOD and SVOD plans. It covers the TVOD part with in-app rentals or live PPV events. Users get to enjoy a mix of live sports, original content, and movies under one hybrid tier.

4. Amazon Prime Video

Combines a subscription model (with Prime) and TVOD for rentals or purchases. Amazon also offers free content with ads via Freevee, its AVOD service.

5. YouTube

Traditionally, YouTube was an AVOD platform, but now it includes YouTube Premium (SVOD) and movie rentals/purchases (TVOD). So, it supports all three monetization methods on a single platform.

HVOD in the VOD Ecosystem

Video on Demand (VOD) services allow viewers to watch shows and movies at their convenience, rather than following a fixed TV schedule.

There are four main monetization models for VOD platforms:

1. AVOD (Ad-Supported Video on Demand): Content is free for users, but includes ads before, during, or after videos.
2. SVOD (Subscription Video on Demand): Users pay a recurring fee (monthly or yearly) to access a full content library.
3. TVOD (Transactional Video on Demand): Viewers pay separately to rent or buy individual videos.
4. HVOD (Hybrid Video on Demand) blends these models into one platform. It gives users the freedom to choose how they want to access the content, whether with ads, through a subscription, or by paying per video. For OTT providers, it enables more ways to generate revenue.

HVOD vs TVOD vs SVOD vs AVOD

The OTT User’s Perspective

Category	HVOD	AVOD	SVOD	TVOD
Access	Choose: watch free, subscribe, or pay per title	Watch for free with ads	Pay monthly/yearly for full access	Pay only for the videos you want
Ad Presence	Depends—ads for free content, ad-free for paid options	Ads appear before/during/after	Usually no ads, but some tiers may include	No ads at all
Cost to Viewer	Flexible pricing—free, subscription, or one-time payment	Free of charge	Regular recurring payment	One-time payments per video
Content Variety	Wide mix of free, paid, and premium content	Large selection, ad-friendly	Broad range, including original productions	Premium or exclusive titles
Viewer Control	High—users choose how and what to watch	Medium—ads interrupt the experience	High—watch any time, without ads	High—pay only for what you want

The OTT Provider’s Perspective

Category	HVOD	AVOD	SVOD	TVOD
Monetization	Combines revenue from ads, subscriptions, and direct purchases	Makes money from ads shown during videos	Income from subscriber payments	Earns from users buying or renting titles
Earning Speed	Mixed—benefits from both short-term and long-term income sources	Fast—more views mean more ad revenue	Steady and predictable with growing subscribers	Immediate income with each purchase
Audience Reach	Very broad—caters to free users, subscribers, and buyers	Very wide—easy entry for viewers	Limited to those willing to subscribe	Medium—appeals to those okay with one-time buys
Content Planning	Blend of all strategies to reach different audience types	Focus on quantity and ad-friendly content	Prioritize originals and subscriber retention	Promote premium, exclusive, or recent content
User Insights	Broad data across viewing habits, purchases, and ad engagement	Ad performance data, limited personalization	Detailed user behavior data from subscriptions	Minimal data—mainly purchase info
Churn/Drop Risk	Balanced—different options help lower cancellation risk	Very low—no ongoing commitment	Higher—users may cancel at any time	None—no subscription involved
Marketing Strategy	Use segmented campaigns to engage all user types effectively	Boost views for more ad income	Promote long-term benefits and exclusive content	Focus on selling specific titles