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YouTube overhauls TV app to compete with streamers: New features like episodes, previews, and subscription tools aim to boost creator monetization and rival platforms like Netflix and Disney+.

Peacock soars but has catching up to do: Olympics gave the streamer its best month ever in August, but viewership was still dwarfed by Netflix and YouTube.

In 2023, YouTube will surpass Netflix in viewing time among US adults. CTV is driving this growth, now accounting for 44.1% of total time on YouTube, up from 25.1% in 2019, per our forecast. To view the full YouTube US CTV ad revenues forecast, click here. Our take: YouTube鈥檚 pivot to CTV represents a paradigm shift for a company whose DNA is in short, user-generated clips.

Netflix: Advertising has been slow going for Netflix: It likely won鈥檛 crack $1 billion in US ad revenues until next year. However, Netflix still has the potential to become one of the world鈥檚 largest video ad businesses. During its virtual upfront in May, the company reported that it had about 5 million global subscribers on its ad plan.

Streaming makes ad spending gains, Netflix experiences growing pains, and advertisers encounter a soft upfront market.

KEY STAT: Despite small spikes in even-numbered years, US TV ad spending will track negatively through 2027鈥攁nd likely thereafter. The traditional TV ad market is flickering out. From 2008 through its peak in 2018, US TV advertising was a growth story, posting YoY increases most years except during the economic upheaval that started in late 2008 and continued throughout 2009.

The following week, Netflix canceled its upfront event and switched to a virtual format. While the streamer didn鈥檛 give a reason, Adweek reported the about-face was related to the strike. Netflix and freeze. Netflix鈥檚 first-ever TV upfront was among the most eagerly anticipated presentations.

Disney-owned Hulu will earn $3.63 billion in US CTV ad revenues this year. That makes it the market leader, ahead of YouTube ($2.89 billion) and Roku ($2.19 billion). Although we don鈥檛 expect any other single service to reach $1 billion in US CTV ad spending in 2023, several will cross that threshold by 2025, including Pluto TV, Tubi, Peacock, and Netflix.

Netflix will lose viewers once its password-sharing crackdown is implemented, and Amazon has little headroom for growth given that nearly 70% of US households already had Prime as of last year. Peacock viewership is also set to contract this year, thanks to the elimination of its free tier and the withdrawal of free access for Xfinity and Cox subscribers.

KEY STAT: The biggest gains in US viewership are happening on ad-supported platforms, whether on-demand or livestream. Ad tiers are gaining popularity in the US, suggesting pent-up demand. US consumers are flocking to low-cost plans with some amount of advertising.

Sub OTT CTV ad spending will increase 49.6% this year鈥攖hanks largely to newcomers Disney+ and Netflix鈥攆or a total of $8.04 billion. But this figure will also be divided into numerous small slices by the many SVODs that have ad tiers. To see the full forecast, click here. Prediction. Disney+ and Netflix will make a splash in ad revenue growth, then languish.

Netflix saw a 16.8% increase in digital ad revenue in Q2 2024, marking the fourth consecutive quarter of growth, according to the company鈥檚 earnings.

Netflix to develop in-house ad platform: The streaming giant will end its Microsoft partnership to offer better targeting and analytics.

YouTube, Netflix, and Amazon are Gen Alpha鈥檚 coolest brands, per an August 2024 report by Beano Brain that surveyed more than 55,000 kids under 14. To foster relationships with the generation that not only has growing spending power of its own, but also influences parent purchases, marketers will have to understand its evolving digital habits.

Prime Video鈥檚 ad model positions Amazon against Netflix: Targeted ads and competitive pricing drive substantial revenue growth in the streaming market.

Paid sharing will cost Netflix viewership in 2023: The streamer must avoid losing the long-term loyalty of Gen Z.

A Netflix ad-free subscription, for example, now costs $15.49, versus $7.99 in 2011. US households paid an average of $726 on streaming services in 2023, per Deloitte. Some pay as much as $1,236. Content is also gated behind platform exclusivity more than ever before: Apple TV+, Max, Netflix, and Disney might all have big-name shows in a single year, forcing consumers to pick and choose.

Netflix exceeds Q1 forecasts with strong earnings and subscriber growth: Shifts reporting focus from subscriber numbers to revenue and engagement starting 2025.

Disney to bring Hulu ad targeting to its streaming properties: Move should bring efficiencies as Netflix looks to bulk up its ad tier.

These additions, only streamable in the US for a limited time, give subscribers more content for the same price鈥攁 strategy Netflix and Prime Video rely on. Despite owning acclaimed originals like "CODA," Apple's smaller, transient library struggles against competitors' extensive permanent collections, highlighting the need for a broader, more stable content strategy.

In an August 2023 survey, CivicScience asked US adults what they鈥檇 watch if their favorite TV shows didn鈥檛 return with new episodes in the fall, 45% said reruns. This means that even with less content being released, audiences will still be streaming, whether they鈥檙e catching up on their watch lists or revisiting comfortable classics.

Major players including Netflix, Disney+, and Max rolled out ad-supported offerings last year, a move that not only opened up more ad inventory, but increased viewership, too. An Insider Intelligence forecast suggests that US adults are doubling how much time they spend streaming, from about 1 hour daily in 2019 to more than 2 hours daily in 2024.