After amassing subscribers during the COVID-19 pandemic, media streaming companies are turning to ad dollars to make some profits. The streaming industry saw exploded, in the last three years and continues to see expansion in 2023.
Netflix, Amazon Prime Video, and Disney, among others, are incentivizing a major transition in the global market from linear to streaming. Tal Chalozin, chief technology officer and co-founder at Innovid believes the opportunity for advertisers here is massive and savvy marketers will consider the streaming offerings available, especially when developing live sports campaigns in 2023.
Matt Spiegel, executive VP of the Media & Entertainment vertical at Transunion, said with more premium services entering the market, consumers are going to have to choose wisely where they spend their household budgets. He highlighted a study that found that 31 percent of 2,612 Americans in March planned to cancel some subscription services this year. Spiegel said its likely they will gravitate towards mass market subscription streaming services as well as free ad-supported streaming, making niche players acquisition targets for both upstream and downstream services.
Field Garthwaite, CEO and co-founder of Iris TV, said streaming will emerge as a priority at the upfronts. He stated that TV networks’ streaming and digital video inventory have become centerpieces of upfront deals as networks are seeing an influx of new and streaming-first advertisers. “We’re at a tipping point in the marketplace where this inventory is in high demand, there’s not infinite supply and the value is there in terms of targeting, engagement, and measurement.” Garthwaite believes streaming is becoming a bigger part of the overall TV business. “TV networks’ streaming and digital video inventory will continue to account for a bigger share of upfront commitments this year than in previous years.”
Moreover, Bob Iger the CEO of Disney, during the earnings call, had emphasized ad-supported streaming. He said the advertising potential of this combined platform is incredibly exciting. Paramount Global and NBCUniversal, as well as Warner Bros Discovery, have also outlined cheaper ad tiers.
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