Streaming monetization models explained: SVOD, AVOD, FAST, and hybrid.

As the name suggests, ad-free streaming services operate without any advertisements. Ad-supported models come in several different forms.

Subscription video-on-demand (SVOD) services, like Apple TV+, provide unlimited access to ad-free, on-demand content for a fixed monthly subscription rate.
Transactional video-on-demand (TVOD) services, like iTunes, allow viewers to rent or purchase specific content on a pay-per-view basis. In contrast to SVOD, these services do not offer unlimited content consumption.

Ad-supported streaming services feature advertisements and are typically free or available at a reduced monthly fee.

Advertising-based video-on-demand (AVOD) services offer lower-cost or free access to content that viewers can watch on-demand, with regular ad breaks. Unlike traditional TV, AVOD services allow users to choose what they want to watch and when, just with ads. Most previously AVOD-only services, like Hulu, are now hybrid.
Free ad-supported streaming TV (FAST) platforms offer live, scheduled programming (similar to traditional TV) that’s supported by ads and completely free to viewers. Most originally FAST services, like Tubi and The Roku Channel, now include an ad-supported on demand (AVOD) offering, also for free.
Virtual multichannel video programming distributors (vMVPDs) like Sling TV and YouTube TV deliver bundles of live TV channels over the internet for a subscription fee—similar to a traditional cable or satellite subscription, but streamed. These paid services include popular networks and feature ad-supported content just like cable.

Hybrid video on-demand (HVOD) is the newest streaming monetization model in the streaming ecosystem, likely already familiar to you. Hybrid services integrate various monetization models (SVOD, FAST, AVOD, etc.) within a single platform to offer a flexible viewing experience. This approach enables platforms like Netflix, Tubi, and Hulu to serve different viewer segments at the same time, and many popular streaming apps are adopting this hybrid model.

The hype on hybrid

Although the original streaming services were built around the value proposition of ad-free, on-demand content, things are shifting. You’ve likely noticed popular streaming apps like Netflix and Prime Video recently adding advertising models to their historically SVOD offerings, which has sparked mixed opinions.

With subscription prices rising, incorporating lower-priced ad-supported tiers helps ease consumer discontent while giving platforms a chance to sell advertising inventory. These companies aim to respond to consumer needs during challenging economic times, but they can’t overlook the additional revenue generated through advertising.

Consumers are increasingly open to switching to ad-supported tiers to keep their favorite content while managing expenses—so much so that 60% say they prefer an ad-supported platform if it saves them $4 to $5 a month, and half of new Netflix subscribers now choose the lower-priced, ad-supported option.

From premium, ad-free experiences to fully ad-supported options (and everything in between), consumers have more streaming choices than ever. That’s good for viewers—but it also creates challenges for marketers.

With more inventory now available across ad-supported platforms, advertisers have a huge opportunity. But tapping into that opportunity means navigating a fragmented ecosystem of apps, networks, and operating systems. Reaching your audience everywhere they watch now requires gated access to ad inventory across all corners of the streaming landscape.

At EMG, we make that easy. Find and reach in-market auto shoppers across every ad-supported streaming service—no matter where they’re watching. Get started today.