NEW YORK: With the launch of cheaper, ad-supported subscriptions, Netflix and Disney+ are expected to bite into the revenue of traditional television channels as the streaming services look toward continued expansion.
"These launches are going to create the biggest premium advertising space in more than a generation," said analytics company Samba TV senior vice president Dallas Lawrence.The windfall for Netflix and Disney+ could be considerable. Market tracker Statista forecasts that spending on television ads globally will hit US$159 billion this year.
"Not long ago, everyone said subscriptions would kill ads," said Kevin Krim, head of marketing analytics firm EDO.Some streaming television services such as NBCUniversal's Peacock, Paramount+ and HBO Max already feature ad-supported offerings. When the time comes, Disney+ will transition its existing US$7.99-per-month subscription tier to the ad-supported version, and the ad-free option will go for US$10.99, the company has said.Being able to reach Netflix or Disney+ viewers promises to help brands reconnect with audiences that have abandoned traditional"linear" television in favour of streaming entertainment, said nScreenMedia chief analyst and founder Colin Dixon.
It will also afford advertisers the luxury of placing ads directly with Netflix or Disney+ for viewers around the world, rather than having to negotiate numerous deals with channels or stations in various regions, Dixon added.
these streaming companies have become the cable tv companies they fought so hard to replace
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