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Our take: Disney's significant reduction in streaming losses and its ability to drive subscriber growth despite regulatory challenges suggest it can successfully transition from traditional TV to digital streaming.

Time spent with digital video will surpass time spent with TV

That will pressure streaming services and aggregators to offer digital bundles that could look uncannily like their traditional TV predecessors. More sports will come to streaming. Sports leagues will continue to license their content to digital platforms, in many cases exclusively.

The strong connected TV (CTV) viewing growth underscores the shift from traditional TV to streaming, with YouTube capitalizing on this trend. We estimate that roughly 4 in 10 ad dollars YouTube makes in the US comes from CTV. In context: The platform has attracted diverse advertiser budgets, particularly for brand and direct response ads.

The 2024鈥�2025 upfronts and NewFronts promise to be interesting. This year鈥檚 planning season will showcase the interplay between consumer preferences and TV viewing habits, underscoring the urgency for industry-wide innovation and flexibility.

Demonstrate the need to diversify advertising beyond traditional TV. Make an argument for investing in CTV. Illustrate the decline in traditional advertising. More like this:. 3 milestones that mark the ascent of CTV: Ad spend, viewers, and major players. 5 charts to inform your video marketing strategy.

The real reason CTV is such a game changer for advertisers is its marriage of the TV screen鈥檚 captivating format with the data-driven precision of performance marketing. Unlike traditional TV, which requires a broader approach to audience strategy, connected TV allows advertisers to target specific ideal audiences based on criteria like demographics, interests, and even behaviors.

Since buyers will spend 55 minutes more per day with digital video than traditional TV, attaching brand messages to engaging video content can boost recall during purchase decisions. Advertisers can run self-serve in-stream ads ahead of publisher videos in LinkedIn's feed, which measures 99% brand safe, according to the company鈥檚 analysis.

To view the time spent with total TV and digital video forecast, click here. 鈥淭痴鈥� is evolving, with digital platforms a key component. Traditional TV time is declining, though much of the digital video viewing that鈥檚 replacing it in the UK is akin to long-form, TV-like content.

Baby boomers make up the largest share of TV viewers, while 25- to 34-year-olds predominate CTV usage. Marketers increasingly plan their buys across these mediums to achieve their targeting goals.

FAST is furiously turning to ads: Google TV is the latest to spy a major opportunity to sell CTV ads at affordable CPMs.

Gen Z adults鈥� time spent with TikTok will approach their time spent with traditional TV. Many users in this age group watch movies and TV shows on TikTok, signaling that they view the app as an entertainment hub. TikTok is also trying to get more users to watch long-form video on the app.

Time spent is decreasing across cable and broadcast TV but increasing in streaming. In Q4 2022, streaming boosted overall time spent with TV among US adults, reversing the decline in TV viewing over the past few years, according to Nielsen.

Our forecasts for viewing habits by household show important tipping points in the ongoing migration from traditional TV to digital alternatives. Less than half of US households now subscribe to traditional pay TV. The percentage fell below 50% in 2022 and will continue a steady decline through 2027, when only 34.9% of households will have traditional pay TV service.

Gen Zers and millennials in our study placed little value on most forms of ads, including traditional TV, out-of-home, radio, print, and podcast ads.

At MNTN, we have seen this firsthand鈥�90% of our customers are first-time TV advertisers. For brands who want to continue with linear TV buys, CTV will not get in the way. Because CTV is a digital performance channel, it does not compete with ads served on traditional TV. Instead, it acts as an additive channel, enabling advertisers to diversify their marketing mix while producing real results.

And while that鈥檚 down from 68.7% in 2020, it still shows how important traditional TV is to political advertising. Political ads will make up 11.7% of US linear TV ad spend this year and 5.4% of CTV ad spend, per our forecast. More inventory on both of these channels will go to political ads than in non-presidential election years. But the impacts on CTV will be smaller than those on linear.

By comparison, in 2024, traditional TV will capture 15.1% and digital video 27.8% of media spend. Audio ad spend is less than time spent would suggest. The average adult will spend an average of 2:42 each day listening to audio in 2024鈥�21.4% of total media time spent. A little over half of that (1:24) is digital audio. Monetization via subscriptions limits digital audio ad slots.

Traditional TV offshoots: Virtual cable services (vMVPDs), like YouTube TV, Sling TV, and Hulu with Live TV, sell streaming inventory. TV Everywhere鈥攕treaming apps for traditional TV networks that require authenticated logins鈥攊s another outlet where digitally served ads can appear against live TV. What isn鈥檛 considered CTV?

Although the experience of watching FAST platforms is not entirely akin to watching traditional TV, the concept has found an eager audience in the US. The price is unbeatable (free!), particularly compared with traditional or digital pay TV, which FAST seeks to replace in some respects. Roku leads, but Freevee is growing the quickest.

Digital audio鈥檚 US adult audience is bearing down on traditional radio鈥檚 (195.1 million versus 214.0 million this year). By next year, the gap will only be about 16 million. Still, as growth slows and traditional radio endures, it鈥檚 uncertain when digital might exceed terrestrial. Overtaking traditional TV.

Ad spending is looking shaky for many of the legacy formats across digital and traditional. New channels have arrived, however, and there are bright spots. This year could be rough, but 2024 is looking better.