Posts for 'Advertising'

New research from Inscape analyzing the viewing behavior of 23 million opted-in VIZIO smart TV owners reveals streaming’s ascendance. In Q1 ’24, fully 58% of these viewers only streamed content, up 3 percentage points since Q4 ’23. 38% watched both streaming and pay-TV (cable, satellite and OTA), and just 3% only watched pay-TV. The streaming-only group has increased from 45% in Q4 ’21. We discuss these and other key findings.

Then we turn our attention to Max’s immediate rate increase, announced this week. Of note, only the two ad-free tiers are getting $1 per month increases, while the “Max With Ads” tier will remain $10 per month. As we discuss, this is the latest evidence of how traditionally ad-free streaming services (e.g. Netflix, Disney+, Amazon Prime Video) are incenting subscribers to take ad-supported plans - and why CTV advertising is poised to become more valuable than ever.

Last up we review new research from the American Customer Satisfaction Index showing record-high satisfaction levels for streaming services. Neither of us are surprised, given the strength of streaming’s value proposition. This year Amazon Prime Video topped the satisfaction list, but all streamers perfumed well and were tightly clustered.

Listen to the podcast to learn more (33 minutes, 31 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

Memorial Day weekend was a disaster for Hollywood, with approximately $128 million in box office, down 36% from 2023’s total, and the worst in decades. There are some specific reasons, such as the steep underperformance of “Furiosa: A Mad Max Saga.” But as we discuss, any poor box office performance these days must always be viewed in the context of streaming’s myriad choices for viewers. Compounding matters for the box office are streaming’s inexpensive new bundles; on last week’s podcast we noted that Xfinity subscribers in particular can now access 6 top streaming services for just $30 per month.  

Next we return to bundling topic, in light of new research from Antenna showing subscriber loyalty to top streaming services. No surprise, Netflix has the highest loyalty, which in turn begs the question: how does Netflix benefit from participating in discounted bundles? We offer our thoughts.

Also on our radar this week is FreeWheel’s latest research from its Viewer Experience Lab, focusing on factors that diminish the viewer’s ad-supported experience. The testing found that viewers were most bothered by slow or buffering ads (78%), ads that unnaturally interrupt the programming (71%) and “we’ll be right back” slates (33%). The research is important because as CTV advertising becomes an ever more critical revenue stream, delivering top-notch ad experiences will be essential for optimizing monetization.

Last up, we review new research from Horowitz Research which found that of sports viewers, 58% of 18-34 year-olds and 57% of 35-49 year-olds say they’re likely or very likely to subscribe to the new Venu Sports streaming service for $35-$40 per month. While the research validates basic interest in Venu, it still feels early to accurately estimate true demand for Venu. A big looming question for Venu’s value proposition is whether TNT is able to renew its NBA package.

Listen to the podcast to learn more (28 minutes, 29 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

[UPDATED]

Netflix revealed at its Upfront this week that it now has 40 million monthly active users on its lower-priced ad-supported tier. It’s not clear how monthly active users and subscribers relate to each other. But I think it’s probably fair to assume that closer to around 10% of Netflix’s 270 million global subscribers are now ad-tier subscribers (Colin and I will clarify this further on next week's podcast). Not too shabby since the ad tier only officially launched in November, 2022. No surprise, Netflix is also creating its own ad-tech stack with partners.

In addition Hub Research released survey data showing that 15% of respondents cited Netflix as the brand that would most likely make them sign up for a bundle (Amazon followed with 12%, followed by AT&T with 10%).

As Colin and I discuss, all of this nicely positions Netflix to play a lead role in the “streaming bundles” age that has already begun (note that Comcast announced a Netflix-Peacock-Apple TV+ bundle this week, pricing TBD). And with the Netflix app ubiquitously available, it could be a key “on ramp” to targeted streaming bundles, based on viewers’ demonstrated interests. Given Netflix’s newfound scale in CTV ads, a bundling play could also find Netflix with a lead role in selling/managing ads across bundled services.

Listen to the podcast to learn more (25 minutes, 7 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

This week’s NewFronts highlighted three key and interlocking themes: TV OEMs’ emphasis on FASTs, AI’s role in driving video ads’ value, and CTV evolving to full funnel. We discuss each of these and how specific NewFront presentations addressed these points.

All of these feed a broader belief I’ve had for while: the value of a CTV ad - as measured by the financial return derived from gaining a unit of the viewer’s time - is only going to increase in the years ahead. Ads will continue to be more targeted and personalized, and also drive KPIs across the full funnel as viewers’ opportunities to engage soar.

Separate from video ads, I share highlights from IAB’s three-part session on Monday afternoon called “Spotlight On: News” which focused on the value of news media for brands and society. Huge credit to IAB for convening numerous C-level news executives to discuss the important role of trusted news in democracy and why it is good business for advertisers to be involved.

Listen to the podcast to learn more (36 minutes, 59 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

This week we’re delighted to interview Wurl’s CEO Ron Gutman who discusses the company’s new AI-powered BrandDiscovery product that allows ads to be aligned with content in real time.

Ron explains the eight key emotional reactions to specific scenes in entertainment programming, and how ads that are consistent with these emotions deliver far higher conversion. He also details the critical role AI plays in enabling improved personalization and targeting. The discussion further demonstrates how units of advertising are going to become ever more valuable as technology enriches them.

Listen to the podcast to learn more (33 minutes, 10 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

On the podcast this week Colin and I dig into Tivo’s Q4 2023 Video Trends Report, released earlier this week and available here. Among other things, TiVo’s research found that in the past 2 years the number of paid video services used per respondent has leveled off while non-paid services has increased, indicating higher levels of ad tolerance.

Meanwhile, TiVo found that the gap between people signing up for a new streaming service and dropping one is at an all-time low, highlighting how churn remains an issue.

In addition, nearly half of respondents typically go to 2 or 3 streaming apps before deciding on something to watch. Just 19% of respondents said they know what they want to watch, once again revealing how important discovery remains.

Listen to the podcast to learn more (32 minutes, 59 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

Last Wednesday was VideoNuze’s Connected TV Advertising PREVIEW: 2024 virtual which featured 19 senior executives on 5 sessions in 1 high-impact afternoon.



Below are links to each of the session recordings along with descriptions of each session and its speakers.



Many thanks to our 3 generous partners PadSquad, Roku and Wurl!

Colin and I distilled some of our key takeaways on last Friday's Inside the Stream podcast.

Enjoy!

[VIDEO] CTV Advertising in 2024: $30 Billion and Robust Growth Ahead

[VIDEO] Exploring CTV's Key Trends and Opportunities in 2024

[VIDEO] How to Make CTV Ads More Engaging

[VIDEO] Why Premium Streaming Video is Increasingly Ad-Supported

[VIDEO] Achieving Viewership At Scale: Netflix’s Focus on the Mid-Tail
 

The following video was recorded at VideoNuze’s Connected TV Advertising PREVIEW: 2024 virtual on February 28, 2024.

CTV Advertising in 2024: $30 Billion and Robust Growth Ahead
eMarketer forecasts CTV advertising to grow 22% in 2024 to over $30 billion in the U.S. alone. In this opening presentation, learn what's driving this growth, which companies are gaining the most, and what's ahead in the next several years.

Ross Benes - Senior Analyst, eMarketer

The following video was recorded at VideoNuze’s Connected TV Advertising PREVIEW: 2024 virtual on February 28, 2024.

Exploring CTV's Key Trends and Opportunities in 2024
TV viewership is fundamentally changing, and CTV is a clear beneficiary. In particular, ad buyers are excited about how CTV combines the best of TV advertising’s reach and impact with the best of digital advertising’s targeting and engagement. Learn about all of CTV's key trends and opportunities in 2024 and beyond.

Beth Anderson - SVP/GM, FAST Channels & VOD Sales, BBC Studios
Ashley Arena - Head of US Advanced Video Activation, PHD
Carly Friedman - Head of Industry, Gaming, Tech and Telco, Roku
David Pudjunis - VP, Revenue Operations & Digital Partnerships, AMC Networks
Danielle DeLauro - EVP, VAB (moderator)

The following video was recorded at VideoNuze’s Connected TV Advertising PREVIEW: 2024 virtual on February 28, 2024.

How to Make CTV Ads More Engaging
CTV gives advertisers and publishers brand new opportunities to engage viewers far beyond conventional 15 and 30-second spots. What kinds of innovations are already working in CTV interactivity and what's on the roadmap for 2024? How will new forms of viewer engagement change how CTV ads are bought and their success measured?

Tyler DeNicola - VP of Programmatic Revenue & Partnerships, A+E Networks
Jordan Greene - Chief Media Officer and Co-founder, Alpha Precision Media
Rose McGovern - Head of Programmatic and Digital Ad Sales, DIRECTV Advertising
Lance Wolder - Head of Client Strategy and Marketing, PadSquad
Alan Wolk - Co-Founder and Lead Analyst, TVREV (moderator)

The following video was recorded at VideoNuze’s Connected TV Advertising PREVIEW: 2024 virtual on February 28, 2024.

Why Premium Streaming Video is Increasingly Ad-Supported
All across the streaming landscape, premium video is increasingly supported by advertising, in both free and hybrid subscription services. This session will explore the range of different reasons behind this evolution and what it means for the industry and viewers going forward.

Dave Bernath – VP, Sales & Partnerships, North America, Wurl
Bill Condon – VP, Enterprise Sales & Partnerships, Xumo
Erick Opeka – President and Chief Strategy Officer, Cineverse
Tejas Shah – SVP, Commercial Strategy and Analytics, FilmRise
Jen Soch – Executive Director, Channel Solutions, GroupM
Colin Dixon – Chief Analyst and Founder, nScreenMedia (moderator)

The following video was recorded at VideoNuze’s Connected TV Advertising PREVIEW: 2024 virtual on February 28, 2024.

Achieving Viewership At Scale: Netflix’s Focus on the Mid-Tail
Ultimately, to achieve success with CTV advertising, streaming providers need viewership at scale. Based on new research, learn how Netflix has focused its “mid-tail” content investments to build a foundation for its new ad-supported tier’s success – and how other streaming providers can do the same.

Jonathan Hurd - Partner, Altman Solon

Earlier this week VideoNuze held its Connected TV Advertising PREVIEW: 2024 virtual, featuring 19 industry executives speaking on 5 different sessions. In today’s podcast Colin and I discuss some of the key market drivers and themes we consistently heard.

There are many reasons to be optimistic about CTV’s future growth, but also some challenges the industry faces. Across the sessions a theme we heard was that despite CTV’s rapid growth, it’s still relatively early in its evolution, with a lot of room for making CTV ads far more valuable than traditional TV’s 30-second format.

(Note all of the session videos will be posted to VideoNuze early next week for on-demand viewing)

Listen to the podcast to learn more (27 minutes, 11 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

Netflix added 13.1 million global subscribers in Q4 ’23, its best fourth quarter ever. As we discuss, the company is capitalizing on the introduction of paid sharing and a lower priced ad-supported tier. Paid sharing, which requires those who were using someone else’s login credentials to start their own subscription, has been especially effective. Netflix designed a smart strategy to eliminate this long-valued benefit. It could have become a PR nightmare, but instead has rolled out seamlessly.

Netflix said that the ad-supported tier now accounts for an impressive 40% of new subscriptions in markets where it is available. In yet another move to optimize revenue, Netflix is discontinuing its $11.99 per month Basic plan, which will drive more new subscribers to the ad tier or the least expensive ad-free tier which is $15.49 per month.

Listen to the podcast to learn more (32 minutes, 20 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

This week on Inside the Stream Colin and I cover a number of different topics that have been in the news. First up, NASCAR has signed new rights deals with TV and streaming partners for nearly $8 billion, a huge increase from its current deals.

Next we discuss new research indicating that non-pay-TV viewers will outpace traditional pay-TV viewers by the end of the year. Then, TikTok is encouraging creators to make longer videos, in a move to compete with YouTube. Last, Hub reports that built-in apps on Smart TVs get greater usage.

Listen to the podcast to learn more (36 minutes, 54 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

It’s earnings season, and on this week’s podcast, Colin and I discuss results from Disney, Roku, WB Discovery and Dish. The four companies’ subscriber counts, profitability and shifting business models all provide insights into larger industry trends and challenges.

Listen to the podcast to learn more (37 minutes, 36 seconds)

Browse all previous podcasts

Subscribe to Inside the Stream
Apple Podcasts  Google Podcasts  Spotify  Amazon Music  RSS

Last Thursday was VideoNuze’s fourth annual Connected TV Advertising Summit virtual which featured 27 senior executives on 6 sessions in 1 high-impact afternoon.

Below are links to each of the session recordings along with descriptions of each session and its speakers.

Many thanks to our 5 generous partners Beachfront, Extreme Reach, PadSquad, Pixability and Roku.

We covered a lot of ground during the Summit which Colin and I tried to distill into our 5 key takeaways on last Friday's Inside the Stream podcast.

Enjoy!

[VIDEO] Welcome and How CTV’s Omnipresence is Reshaping the TV and Advertising Industries

[VIDEO] Inside CTV’s Biggest Opportunities and Challenges - The Three Year Perspective

[VIDEO] Understanding CTV/Streaming Business Model Choices: Paid, Hybrid, FAST

[VIDEO] Why CTV’s March to Full-Funnel/Lower-Funnel and Shoppable TV is Inevitable

[VIDEO] How Innovation is Driving the Value of Content and Advertising in CTV

[VIDEO] Unraveling the Measurement and Attribution Imperative