Netflix's dive into the ad-infested waters isn't just a splash—it's a cannonball that's sent waves through the SVOD sea. In a landscape where "subscriber growth" was the chant, the major players are now humming a different tune: advertising tiers. This shift is more than just a fad.
The year 2023 in media was less a rollercoaster and more a rocket ride to the moon—without a clear
landing strategy. WGA and SAG-AFTRA strikes turned studios into frantic chefs in a kitchen where half the ingredients are missing. This chaos was the backdrop to the intensifying streaming wars.
Enter the age of FAST—free ad-supported streaming TV. As subscription costs skyrocket, viewers are hunting for cheaper thrills. Pluto TV, The Roku Channel, Tubi, Amazon’s Freevee, and Peacock's free tier are the new cool kids on the block. Over half of viewers are tuning
in. Freevee's 'Jury Duty' became a streaming Cinderella story, and Tubi is upping its game with more originals to seduce subscribers.
Welcome to the Great Rebundling. HBO Max and Discovery+ merged to form 'Max', a move akin to two superheroes joining forces. Paramount threw in its hat with Paramount+ and Showtime. Disney, not one to be left behind, mashed up Disney+, Hulu, and ESPN+ into a one-app wonder. There's talk of Apple and Paramount cozying up for a bundle,
and Verizon's offering a cut-price Netflix and Max deal. It's like the streaming world decided to play musical chairs, but with subscription services.
Sports on streaming is now big business. A chunky 29% of viewers are catching sports on platforms like Prime Video. YouTube TV scored NFL’s Sunday Ticket for a cool $2 billion, elbowing out Disney, Amazon, and Apple. Prime Video’s Thursday Night Football saw a viewership uptick of 25%. Netflix is set to stream a
tennis face-off between Rafael Nadal and Carlos Alcaraz, while Disney's planning a solo ESPN streaming app for 2025. It's like traditional TV sports and streaming had a baby, and it's athletic and tech-savvy.
Studios are now eyeing social media as the new Wild West of content distribution. Full-length episodes and movies are popping up on platforms like TikTok and Twitter. Peacock tested the waters with 'Killing It' on TikTok, and Paramount dropped 'Mean Girls'
there too, raking in millions of views. It's the digital equivalent of finding a dollar in your old jeans, but for content.
Reruns are making a comeback, proving that everything old can be new again. 'The Office', 'Friends', 'Seinfeld', and 'Breaking Bad' remain the comfort food of streaming. Nickelodeon's 'Avatar: The Last Airbender' and the CW’s 'Riverdale' and 'All-American' found new life on Netflix. USA Network’s 'Suits' hit the streaming jackpot after Netflix
licensing. It’s like rediscovering your old mixtape and realizing it's still awesome.
Films are getting a second act as limited series. 'BlackBerry' transformed from a feature film to a three-part series. Baz Luhrmann’s 'Australia' morphed into 'Faraway Downs' on Hulu, with extra footage and plot twists. It's like those movies went into a chrysalis and emerged as binge-worthy butterflies.
Netflix's 15 million monthly users on its ad
plan is more than a statistic; it's a trend. They're experimenting with "binge ads" and sponsorships for hits like 'The Crown'. Netflix is a streaming giant but a minnow in CTV ad revenues. It's like Goliath decided to sell lemonade on the side.
Disney+ and Amazon are joining the ad party. Disney+ even launched programmatic ad inventory. Apple's eyeing a bigger slice of the ad pie for Apple TV+. It’s a club everyone wants to join.
Antenna’s subscriber categories—Ad Avoiders, Ad Takers, Ad Managers, and Ad Oblivious—paint a picture of a viewer base as diverse as a bag of mixed nuts. The spread of ad-supported plans reveals a streaming landscape as varied as a flea market.
As streaming grows up, platforms are wrestling with the ad-supported versus ad-free quandary. Will the "Ad Manager" trend, where viewers toggle between ad-loaded and pristine experiences, become the new normal? In the
coming years, defining advertising's role in the streaming saga is the cliffhanger we're all waiting to see resolved. The story of streaming and ads isn't just evolving; it's a saga with more plot twists than a telenovela.
Netflix's plunge into the realm of ad-supported streaming is more than a mere dip—it's akin to a seismic cannonball dive, causing ripples across the vast ocean of subscription video-on-demand (SVOD) platforms. Where once the mantra was subscriber growth at all costs, the
tune has drastically changed. Now, it's all about the allure of advertising tiers. This isn't just a passing trend, it's a strategic upheaval. Netflix, Disney, Apple, the titans of streaming, have all cranked up their ad-free subscription rates. It's reminiscent of an aristocratic gala where, suddenly, vendors start hawking street food. Joining the fray, Peacock and Paramount+ have also amped up their prices. The underlying strategy? Tempting viewers towards ad-filled streams to fatten up the
revenue pot, as Sarah Lee from Parks Associates astutely observes.
The media landscape of 2023 was less a rollercoaster and more akin to a rocket hurtling to the moon, sans a clear plan for touchdown. WGA and SAG-AFTRA strikes threw the studios into disarray, like chefs in a half-stocked kitchen struggling to keep the stoves burning. Amidst this turmoil, the streaming wars escalated, becoming fiercer than ever.
Enter the era of FAST
(free ad-supported streaming TV). As subscription prices soar, viewers are on the prowl for more wallet-friendly options. Services like Pluto TV, The Roku Channel, Tubi, Amazon’s Freevee, and Peacock's gratis tier have emerged as the new darlings of the budget-conscious viewer. Over 50% of the audience has shifted to these platforms. Freevee's 'Jury Duty' emerged as an unexpected hit, and Tubi is bolstering its appeal with a slew of original content.
Then there's
the phenomenon dubbed the Great Rebundling. HBO Max and Discovery+ amalgamated to birth 'Max', akin to a superhero alliance. Paramount countered with its hybrid of Paramount+ and Showtime. Not to be outdone, Disney merged Disney+, Hulu, and ESPN+ into a single application. There's even buzz about Apple and Paramount bundling their offerings, and Verizon's thrown in a discounted combo of Netflix and Max. The streaming universe seems to be playing a game of musical chairs, but with subscription
models.
Sports streaming has exploded onto the scene. A substantial 29% of viewers are now catching sports events on platforms like Prime Video. YouTube TV outbid giants like Disney, Amazon, and Apple for NFL’s Sunday Ticket, shelling out a whopping $2 billion. Prime Video’s live streaming of Thursday Night Football games witnessed a 25% spike in viewership. Netflix is gearing up to live stream a high-profile tennis match between Rafael Nadal and Carlos Alcaraz,
while Disney is brewing plans for a standalone ESPN streaming app by 2025.
Social media platforms are being eyed by studios as the new frontier for content distribution. Full-length episodes and movies are popping up on platforms like TikTok and Twitter. Peacock dipped its toes in this trend by releasing 'Killing It' on TikTok, while Paramount strategically dropped 'Mean Girls' on the platform, both garnering millions of views.
Reruns
have made a triumphant return, proving the adage that what's old can be new again. Staples like 'The Office', 'Friends', 'Seinfeld', and 'Breaking Bad' continue to be the comfort food of streaming. Nickelodeon's 'Avatar: The Last Airbender' and the CW’s 'Riverdale' and 'All-American' have found renewed popularity on Netflix. 'Suits' from USA Network struck gold after being licensed by Netflix, dominating the U.S. streaming charts.
Movies are now getting a second
chance as limited series. 'BlackBerry' transitioned from a silver screen feature to a three-part series. Baz Luhrmann’s 'Australia' was reimagined into 'Faraway Downs' on Hulu, complete with additional footage and altered plotlines. These transformations are akin to caterpillars turning into binge-worthy butterflies.
Netflix's 15 million monthly users on its ad-supported plan signify more than a mere trend; they indicate a shift in viewer preferences. Innovations
like "binge ads" and sponsorships for flagship shows like 'The Crown' are part of this new strategy. Despite its colossal presence in streaming, Netflix remains a fledgling in the realm of CTV ad revenues.
Disney+ and Amazon are not far behind in this ad-laden race. Disney+ has ventured into programmatic ad inventory, while Apple is looking to carve a larger slice of the advertising pie for Apple TV+. The streaming world is witnessing a convergence where everyone
seems eager to join the ad-supported bandwagon.
The categorization of subscribers by Antenna—Ad Avoiders, Ad Takers, Ad Managers, and Ad Oblivious—paints a picture of a viewer base as multifaceted as a kaleidoscope. The spread of ad-supported plans reveals a streaming landscape that's as diverse and unpredictable as a bazaar.
As streaming matures, the platforms are locked in a strategic tug-of-war between ad-supported and ad-free
models. The "Ad Manager" trend, where viewers oscillate between ad-laden and pristine viewing experiences, could very well set the precedent for the future. In the upcoming years, the role of advertising in the streaming narrative is the cliffhanger that has everyone on the edge of their seats. The saga of streaming and advertising isn't just unfolding; it's a narrative brimming with more twists and turns than a gripping telenovela.
