It’s beginning to look a lot like cable.
85% of US households have at least one video streaming subscription. Many subscribe to five or more.
The fastest growing segment of streaming is ad-supported, and Netflix and Disney are both about to start running ads as well.
The total price of a household’s streaming subscriptions, the need to switch from this service to that, and now commercials make streaming look a lot like cable.
And the content is on endless repeat.
More than ever, audiences need effective recommendation engines. The 4.5-star world isn’t cutting it.
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Links to Resources Mentioned
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“Video Streaming Market Size and Trends,” Grand View Research, Recent
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“Why the Future of Streaming is in Advertising” Variety, August 8, 2022
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“Netflix Eyes $7-to-$9 Price for Its New Ad-Supported Plan” Bloomberg, August 26, 2022
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“Please Don’t Make a Tolkien Cinematic Universe” The New York Times, September 1, 2022
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2 Comments
Since digital streaming services are digital, additional digital information can be embedded into the stream to mark where adds are to take place. If you’re streaming to an add-inclusive customer, then an add can be seamlessly inserted into the stream. If they are streaming to an add-free customer, then simply no add is inserted into the stream. It’s not really all that complicated.
No, it’s not complicated to drop in disruptive, traditional commercials.
The complications arise with in-show product placements, such as having characters drink a Coke, drive a Ford, or fly on United. Such paid sponsorships can’t be stripped out for audiences paying to avoid advertising. This is why streaming’s trend toward advertising will probably take the disruptive route.