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During its first six months with advertising, Netflix reportedly let advertisers reclaim their money after missing viewership targets and canceled its first in-person upfront a week prior to the event.

When Netflix first rolled out its ad-supported tier in late 2022, its CPMs (the cost to reach 1,000 users) were nearly $60, per our data. Disney+ CPMs were slightly lower at $50, but still much higher than Hulu鈥檚 at $24.44.

Streaming cancellations rise as costs climb: Major platforms like Netflix and Disney+ are adapting with new strategies.

Average CPMs across major US streaming services are trending downward as Netflix and Disney+ lower the rates they solicited soon after launching ad-supported tiers in late 2022.

Even as we approach a potential ad spend winter, connected TV (CTV) advertising is in decent shape. Netflix and Disney+ just joined the ad-supported streaming game. Cord-cutters are outpacing pay TV viewers. And YouTube is increasingly watched on CTVs. These five charts offer a closer look at CTV鈥檚 past, present, and future.

If TikTok gets banned (and it鈥檚 a very big 鈥渋f鈥�), advertisers need to know where consumers will go. Instagram and YouTube would be likely beneficiaries, but OTT TV like Netflix could also see gains. Advertisers may even branch out to other categories entirely, like retail media. Here are five charts showing what could happen.

Connected TV (CTV) ads are skyrocketing, leaving advertisers navigating new ad loads on platforms like Netflix and Disney+ while grappling with the challenges of measuring ROI in the streaming domain.

It鈥檚 becoming more expensive for streaming viewers to avoid advertising. Netflix, Disney+, and others have raised subscription prices over the past several months.

Inflation forces judicious consumers to get more judicious with streamers: Netflix thrives with strategic moves, while others invest heavily in content.

On today鈥檚 episode, we discuss what a looming Netflix and TikTok rivalry might look like, the potential consequences of monetizing influencer marketing on the social landscape, how the rise of retail media will affect social platforms, and more. Tune in to the discussion with our analysts Jasmine Enberg and Debra Aho Williamson.

Free ad-supported streaming TV (FAST) services like The Roku Channel, Tubi, and Pluto TV will bring in tens of millions of viewers this year, though time spent with the platforms isn鈥檛 comparable to that of Netflix or YouTube, according to our forecast. Still, marketers should keep an eye on these streaming services, especially those with parent companies like Paramount or Fox that may be able to spin free viewers into paid members.

CTV ad spending is expanding because more services have adopted ads, streaming services have increased their ad loads, and people continue to spend more time streaming. Not too long ago, HBO, Netflix, and Disney+ featured no advertising. Now they all have ads. And some of the most popular ad-supported streamers, like Hulu, have increased their ad loads in recent years.

WBD and Paramount reportedly discuss merger to enhance streaming services and compete with giants like Netflix: It's a move that could reshape the media industry.

On today's podcast episode, we discuss what a completely Walt Disney Co.-owned Hulu will look like, if the entertainment giant has a Marvel problem, and whether Disney+ can ever rival Netflix for the subscriber crown. "In Other News," we talk about why Roku's revenues and streaming hours are doing particularly well and why Warner Bros. Discovery's ad revenues and subscriber growth are not. Tune in to the discussion with our vice president of content Paul Verna.

Time spent with connected TV (CTV) by US adults will be within 1 hour of linear next year, at 2 hours and 3 minutes (2:03) and 2:48 per day, respectively, according to our June forecast. CTV usage is outpacing ad spend on most platforms, but spend is growing rapidly as Netflix, Disney+, Max, and Amazon Prime Video push more viewers toward ad-supported tiers. As the CTV ad floodgates open, advertisers need to make sure they鈥檙e maximizing ad value by thinking of CTV differently, experts suggested at last week鈥檚 Advertising Week New York.

On today's podcast episode, we discuss how much audiobooks can move the needle for Spotify, how engaging its app is versus Netflix and TikTok, and how much of its podcast success is tied to Joe Rogan. "In Other News," we talk about how badly AI can hurt your company's customer service and why Google has called for a ban on personalized ads for minors. Tune in to the discussion with our analyst Daniel Konstantinovic.

Key stat: Netflix was found to have the lowest percentages of ads per program, per a Sherwood assessment of the percent of time spent viewing ads on streaming services' ad-tiers versus the percent of time watching popular shows. Disney+ had the highest percentage, with 16.6% of time spent watching ads while streaming an episode of "Star Wars: Skeleton Crew.".

Meanwhile, Netflix has dominated the subscription video-on-demand landscape. However, uptake of ad-supported options is beginning to increase. This is likely due to the cost-of-living crisis continuing to affect consumers鈥� media subscription budgets. ITVX, the public broadcaster鈥檚 digital platform, reported a 15% increase in total viewing hours in the first nine months of 2024, for example.

In a turn echoing Netflix, Disney+ has its first quarterly subscriber loss: Disney managed to squeeze by thanks to strong parks and movie results, but its streaming venture has hit a bump.

Max, Netflix, Disney+ and others debuted on the advertising scene asking for record high CPMs in 2022, but Netflix lowered prices after Pirme鈥檚 ad launch, from $39 to $45 down to $29 to $35. Zooming out: Amazon鈥檚 launch and large audience helped it secure $1.8 billion in upfront commitments this year, per The Information, a strong showing for its first upfront season.

Even Netflix is considering breaking into podcasts. The company has reportedly explored deals with podcasters like Alex Cooper of 鈥淐all Her Daddy,鈥� according to Business Insider. It鈥檚 a sign that other streamers could try their hand at video podcasting as well, considering YouTube鈥檚 success in this area. Video podcasts can offer more ways for brands to partner with creators.

YouTube, Netflix, Sling TV, and LinkedIn added games this year in a bid to increase revenue per user and make their platforms more sticky. Developing and licensing games isn鈥檛 cheap, though, and some companies learned that big-budget titles are better left to devoted game publishers. Netflix closed its AAA gaming division in October, likely due to costs and long-term production timelines.

Notably, streaming leaders Disney, Netflix, and Amazon Prime Video are not part of Universal Ads鈥� launch. Zooming out: Universal Ads meets a desire both from small businesses to reach streaming audiences as well as an ad industrywide push to open doors for small- to midsize business ad spending.

The Ofcom study indicated that 26% of 13- to 24-year-olds head to YouTube first for their video fix, behind only Netflix. Meanwhile, Gen Z overindexes compared with other generations in terms of watching influencer videos, with YouTube as the predominant platform, per Ampere Analysis as cited by The Media Leader. But Gen Zers are always looking for the next big thing.

Netflix plans to open up its channel in August, potentially addressing this gap. The departure of Peter Naylor, Netflix's head of ad sales, and the previous exit of ad chief Jeremi Gorman highlight the company's struggles to solidify its ad business. Our take: While Netflix maintains its dominance in streaming, it is far from dominant in CTV advertising.