I hope you enjoy watching ads, because a recent study suggests that ads will account for a third of streaming services’ revenue in the next few years.
It was only about a decade ago that there was a sense that television was indeed in this promising territory. Streaming services like Netflix were popular but not yet dominating the industry, and there were all kinds of great TV shows airing at the time, and your favorite show wasn’t going to happen just because someone was holding a spreadsheet and saying a cryptic message And was cancelled. Unfortunately, though, while streaming services are less convenient than ever, they’re also more expensive than ever, with all the big names raising their prices on a semi-regular basis to make up for the fact that there are enough newcomers subscription.
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One of the ways companies like Netflix are trying to entice users to return or attract new ones is with “cheaper” plans that include advertising. Cheap in quotes there because you’re basically paying what Netflix was a few years ago, except now you can only watch it in one house, the video quality isn’t as good, and yeah, like cable TV, you have advertise. These ad-supported tiers do appear to be the future of streaming services, with PwC’s (via Variety) Global Entertainment and Media Outlook 2024-2028 study predicting that by 2028, “advertising will account for nearly 28% “All the money made by streaming services. ”
In 2023, 20% of streaming revenue will come from ad sales, so this is definitely a huge jump. The report also noted that overall revenue will not grow particularly significantly from 2023 to 2028, which “may be because consumers are overwhelmed by the number of streaming service options. Companies have responded by offering lower subscriptions fee in exchange for displaying ads.
This obviously isn’t ideal for people who hate ads (hi, that’s me), and certainly indicates that this way of subscribing to ad tiers is going to be the norm. But hey, at least it’s not cable, right?
