It’s back to the future in Hollywood.
Streaming is starting to look like the TV days of old. Entertainment for the masses is back. Bundles are making it easier to consolidate subscriptions.
And ads seem to be everywhere.
Netflix, Disney+, and Max — which all started ad-free — now have cheaper ad-supported tiers. Amazon turned on ads in Prime Video this year, making advertising de facto for more than 100 million viewers in the US in one fell swoop.
EMARKETER expects streaming advertising to reach half of linear-TV advertising’s size in 2024 and approach parity with it in 2027.
According to the analytics firm Antenna, these cheaper versions are gaining traction with viewers, too. In May, most new paying subscribers to five major streamers were choosing ad-supported tiers — a year earlier, this was true for only two streamers.
On Disney’s latest earnings call, execs said that about 60% of new subscribers in the US were opting for its ad-supported tier, which accounted for 37% of its total …