Hybrid Video Monetization - How to Choose the Monetization Model That’s Right for Your Business: Part 2 [2022 Update]

By Chris Smith on May 10, 2021

When it comes to choosing the right monetization model for your video business, there isn’t always a clear cut answer. In fact, you probably won’t maximize your potential revenue if you only use one of the primary video monetization models we covered in part one of this series —Advertising (AVOD), Subscriptions (SVOD), and Transactions (TVOD).

That’s why many successful video businesses are turning to a hybrid model. This way, they can maximize revenue with a combination of two or more monetization models.

There are challenges with all of the primary models that make it difficult for content owners to rely on a single monetization model and make a sustainable amount of money. Advertising (AVOD) is only successful with a large audience that generates enough views to be profitable. There will always be viewers that unsubscribe with SVOD and it takes significant marketing efforts to continually add more subscribers. Finally, there is no guarantee of future revenue with the one-time transactions of TVOD.


With a hybrid model, these challenges are diluted with additional avenues for making money. The combinations of monetization models are endless and require some trial and error to find out what works best for your business. Here are a few examples:


If you primarily have a subscription video business, you can add TVOD to the mix and offer the option to rent or own content of your choosing. This way, viewers can get a taste for your content before committing to a subscription.


Consider adding AVOD into the mix as well, and have limited advertising on top of your subscription content. This enables you to monetize while letting viewers preview some of your content for free.


Maybe you primarily have subscription video business and use TVOD to make money on your live streams. There is no reason why you can’t have advertising or even brand sponsorships incorporated into your transactional live streams.

More Ways to Make Money

Think outside the box and consider all your options to make additional revenue. For example, brand sponsorships are a popular form of advertising for many podcasts and can easily be incorporated into your live stream. If your content is educational, why not take a note from PBS’ book and ask for donations—apps like Patreon can help you out with this . If you don’t have merchandise for you fans to purchase, it’s an easy way to make more money that your fans will surely appreciate.


In order for a video business to be successful, it’s important to have your content available on all the platforms and apps your fans use. If you only stream your content on YouTube using advertising to make money, you are missing out on revenue. It’s wise to avoid relying on a single distribution channel, just like it’s wise to use multiple monetization models. Have incentives for your audience to consume your content across all your channels including your website, your OTT platforms and YouTube.

Hybrid monetization is how most large entertainment brands make the most of their content including Netflix, Hulu, and Apple TV. However you don’t have the numbers of these three brands- hybrid models are just as applicable for smaller entertainment brands with more niche content.

For example, StarTalk Radio offers science-based content and they use a hybrid model to make money. They leverage all the models— AVOD, SVOD, TVOD and donation on a variety of different channels including their website, YouTube, iTunes and more. Not only are they making money on their content, they also sell branded merchandise for fans.


The hybrid model is one of the most effective ways for video businesses to maximize their revenue. Start thinking creatively about additional ways to monetize your content to help your video business grow!


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