HLS based video-on-demand (VOD) streaming using nginx and rtmp

Question

Live-streaming using Nginx and RTMP modules is straightforward. I have used the following docker image (which is an excellent solution):

alfg/nginx-rtmp

My current solution for VOD streaming:

1. Create an VOD application block inside the Nginx config file:

application vod {
        play /videos/;
        }

2. Pull this VOD stream inside the HLS block (right now, I have just focused on a single video file named input.mp4)

application show/ {
            live on;
            # Turn on HLS
            hls on;
            hls_path /mnt/hls/;
            hls_fragment 3;
            hls_playlist_length 10;
            pull rtmp://localhost:1935/vod/input.mp4;
        }

The Nginx config looks like this:

daemon off;

error_log /dev/stdout info;

events {
    worker_connections 1024;
}

rtmp {
    server {
        listen ${RTMP_PORT};
        chunk_size 4000;
        application vod {
              play /videos;
        }
        application hls {
            live on;
            hls on;
            pull rtmp://localhost:1935/vod/input.mp4;
            hls_fragment_naming system;
            hls_fragment 5;
            hls_playlist_length 10;
            hls_path /opt/data/hls;
            hls_nested on;

        }
    }
}

http {
    root /www/static;
    sendfile off;
    tcp_nopush on;
    server_tokens off;
    access_log /dev/stdout combined;
    server {
        listen ${HTTP_PORT};
        location /hls {
            types {
                application/vnd.apple.mpegurl m3u8;
                video/mp2t ts;
            }
            root /opt/data;
            add_header Cache-Control no-cache;
            add_header Access-Control-Allow-Origin *;
        }
        location /live {
          alias /opt/data/hls;
          types {
              application/vnd.apple.mpegurl m3u8;
              video/mp2t ts;
          }
          add_header Cache-Control no-cache;
          add_header Access-Control-Allow-Origin *;
        }

        location /stat {
            rtmp_stat all;
            rtmp_stat_stylesheet stat.xsl;
        }

        location /stat.xsl {
            root /www/static;
        }

        location /crossdomain.xml {
            default_type text/xml;
            expires 24h;
        }
    }
}

Do you guys think this approach should work?

Is there anything wrong with the configuration?