Ad-supported streaming nears half of U.S. premium sign-ups
Streaming platforms are significantly capturing the TV advertising market, with projected advertiser spending on streaming reaching $20 billion by 2029, nearing linear TV ad spending. This shift is driven by increasing consumer adoption of cheaper ad-supported streaming plans, which now account for nearly 50% of premium SVOD sign-ups in the U.S. and 78% of net subscriber additions over the past nine quarters across major streamers.
Key Takeaways
- Madison and Wall projects streaming ad spending will approach $20 billion by 2029.
- Ad-supported plans now represent almost 50% of all premium SVOD sign-ups in the U.S., up from 39% two years ago, according to Antenna.
- Over the past nine quarters, ad tiers drove 78% of nearly 65 million net subscriber adds across major streamers.
- Netflix, Peacock, Paramount+ and Disney+ have raised prices in the past year as streaming “streamflation” continues.
- Brian Wieser said total TV ad spending, including national TV and streaming, is in secular decline as marketers shift dollars to Meta, Google and Amazon.com.
Why It Matters
Streaming is taking a larger share of TV ad budgets right now because ad-supported plans are attracting most new subscribers and giving brands more ways to target viewers. That helps explain why Netflix, Peacock, Paramount+ and Disney+ have all raised prices, while upfronts are increasingly focused on sports and younger audiences. But the article also says total TV ad spending is still declining, with dollars moving to Meta, Google, Amazon.com and YouTube. Watch the upfront presentations this week for any further emphasis on sports inventory and targeting tools.
Read full article at hindustantimes.com