As connected TV monetisation models continue to evolve, Hybrid Video on Demand (HVOD) is a term being used to describe platforms that combine various connected TV monetisation models.
The exact combination will depend on each platform, but HVOD services will usually offer viewers different ways to access the content. These tiers could include ad-free tiers which require viewers to pay regular subscription fees to stream content (Subscription-based Video on Demand), ad-supported tiers where viewers can stream content for a lower price (or free) in return for watching ads (Advertiser-funded Video on Demand), or premium tiers where viewers can pay a one-off fee to rent, buy, or stream high-profile content such as new movie releases or live sporting events (Transactional-based Video on Demand). As the competition among connected TV platforms grows, many providers are transitioning to these hybrid models in order to give more choice to viewers, more options for advertisers, and more flexibility in how they can monetise content and generate revenue. Examples of HVOD platforms include Netflix, Disney+, and Rakuten TV.