How HVOD works
Instead of choosing one model, the service lets each viewer pay in the way that suits them. Someone who won't subscribe watches with ads, a subscriber pays to remove them, and a new release is sold as a rental to both.
- Subscription with ads: a cheaper plan that still shows advertising
- Free tier plus paid tier: AVOD for everyone, SVOD for the full catalog without ads
- Subscription plus rentals: the catalog is included, new releases are paid for individually
Why services go hybrid
A single model leaves money behind. A subscription earns nothing from viewers who won't pay, and advertising earns little from the viewers who would have paid more. Running both lets one catalog earn from each group.
The cost is complexity: entitlements, ad rules and reporting have to work per plan and per title, so the platform has to support every model natively rather than through separate systems.
HVOD vs AVOD vs SVOD
AVOD is funded only by advertisers and SVOD only by subscribers. HVOD is any mix of the two, and often includes TVOD rentals as well. In practice most services that started with one model have added a second.
Last reviewed