蘑菇AV

Streamers are raising prices to increase revenues, but Netflix is trying the opposite: The company reduced subscription prices in more than 30 countries as it looks to expand abroad.

Ensuring stable broadcasts during high viewership events is no easy task鈥攅ven Netflix is still working out the kinks in live broadcasting. Beyond Tubi, this year鈥檚 Super Bowl is set to be one of the most-viewed in recent memory thanks to consistent viewership growth and a deal with NBCUniversal to provide multiple Spanish-language broadcasts of the game.

This year鈥檚 upfront will be 鈥渁 buyer鈥檚 market,鈥� according to Peter Naylor, senior advisor at McKinsey & Company, who previously held executive positions at Netflix and Hulu. Ad buyers will again have the leverage to negotiate favorable cancellation terms.

YouTube has more connected TV (CTV) viewers than the total viewers of any other platform except Netflix, according to our October 2024 forecast. Excluding YouTube, 蘑菇AV forecasts US social video ad spending will surpass linear TV ad spending for the first time. 鈥淧eople like Colin and Samir are getting better viewership on CTV for longer than most network sitcoms,鈥� said Gordon.

Netflix is entering the live sports market with key investments in boxing and NFL games. ESPN is launching a flagship streaming app that will include all linear content. As 蘑菇AV senior analyst Ross Benes noted in a recent webinar: 鈥淣别迟蹿濒颈虫 knows that if it puts $150 million on two Christmas games, it has a rough idea of how many people are going to watch.

It was supported by tech giants such as Google, Facebook, Netflix, and YouTube. Telecommunication providers and ISPs like Comcast, Verizon, and AT&T were prominent critics of the rules. And industry group America鈥檚 Communications Association (ACA) called net neutrality an 鈥渦nwarranted internet takeover鈥� and deemed the ruling a major victory.

The unintended consequence is that companies like Netflix and Meta may curb their commitment to the market. The new Digital Services Tax (DST) will put pressure on return on ad spend. The new tax went into effect in June 2024. It applies to advertising on large global platforms, payable by publishers that have revenues in excess of C$20 million ($14.8 million) in Canada.

Netflix may have had an optimistic start to the year, but it still faces a series of threats and opportunities abroad if it wants to maintain its worldwide dominance. Here鈥檚 an overview of what the company can expect to face.

Several leading streaming services have moved toward this hub-like format: Netflix is attempting to bring games to its service, YouTube offers NFL broadcasts via Sunday Ticket, and the recently shuttered Venu Sports represented an effort from WBD, Disney, and Fox to bolster streaming content.

Peacock鈥檚 performance: Peacock鈥檚 36 million subscribers pale in comparison to leaders like Netflix and Disney+, but recent live broadcasts like the 2024 Paris Olympics have proven highly successful. The company鈥檚 ad innovations and long-standing industry relationships make it a key player in the streaming advertising ecosystem.

Netflix and Max still maintain the lightest ad loads, according to July 2024 MediaRadar research, while Paramount+ is on the higher end鈥攁pproaching the number of ads served per hour on FAST channels. Unfortunately, a lower number of ads per hour can result in higher CPMs.

That could benefit larger players like Netflix and Amazon Prime Video, which offer more flexible, cost-effective alternatives to traditional cable and stand to gain from the continued migration away from linear (a trend likely to accelerate in the current macroeconomic climate).

Netflix rounds out its best quarter with a WWE rights deal: The streamer is still seeing strong subscription and revenue growth thanks to an ad-supported boom.

Netflix Q1 shows growth is becoming harder to achieve: Paid sharing will prove dividends鈥攁s will strength in global markets.

Why it matters: Apple TV+ is trying to improve its position in the crowded streaming landscape against Netflix, Prime Video, Hulu, and Max. The platform's focus on premium content has earned it a reputation as the 鈥渘ew HBO,鈥� though this niche positioning may limit broader appeal.

Netflix is entering live sports, while ESPN plans a comprehensive streaming app. Single teams' games now appear across up to five different services weekly. Our take: Amazon's positioning at the Upfronts represents a watershed moment in the advertising landscape; the company's blend of premium sports rights and advanced analytics positions it to claim a larger share of TV ad budgets.

Cross-platform success has encouraged platforms like Netflix and Disney+ to explore more sophisticated product placement strategies targeting younger consumers. Our take: As ad-free streaming services grow, Rembrand's AI-powered approach to product placement could provide brands a scalable way to reach ad-resistant audiences.

Netflix is a subscription revenue outlier. Netflix relies more on subscription revenues than any other streaming service that sells advertising. In 2024, Netflix will generate $14.52 billion in US subscription revenues, but just $950 million in ad revenues. YouTube is an advertising outlier. YouTube is the reverse of Netflix in terms of its reliance on advertising.

Netflix may get a subscription boost when Chiefs, Steelers, Ravens, Texans, and Beyonc茅 fans alike want to tune into its Christmas Day games.