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Netflix is on top internationally, but Amazon Prime Video and Disney+ are proving to be competitive in many markets. Netflix likely has the most viewers in the world by a healthy margin鈥攂ut its competitors are gaining fast. In some major markets, Netflix is already trailing. Behind the Numbers.

Although YouTube made earlier attempts to capture CTV viewing by investing in premium content, it has since focused on two areas that differentiate it from services like Netflix: its creator community and live sports. With Shorts, YouTube is fighting an uphill battle to fend off TikTok and dent Meta鈥檚 share of social video.

And we're going to start with Netflix and the cost of subscriptions. Preyash Shah at Visual Capitalist took a look at the cost of a "standard," in inverted commas, ad-free package across every territory in which Netflix is available and came up with a country ranking. So all this info is available via Netflix, but they did the legwork, came up with the ranking.

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.

How Netflix games are going, there was some research... So Netflix soft launched their gaming downloads through its own mobile app two years ago, according to a survey from research company Savanta, just over 20% of people had downloaded at least one game through Netflix.

From a consumer point, it sucks to have lost access to the cheapest tier of Netflix without ads shortly after a lot of consumers had to probably boot their kids off of the Netflix subscription or their friends off the Netflix subscription.

For consumers, Netflix made improvements to the picture quality for ad-tier watchers and added the ability to watch on two devices simultaneously. Netflix said it鈥檚 making more on a per-user basis for its ad-supported tier than its standard subscription. 鈥淭hat鈥檚 why Netflix is doing all of these things to make [its] ad tier better,鈥� said Goldman.

Even though ad-supported streaming video predates subscription-focused streaming, much of the conversation around streaming services has focused on the latter, thanks to the rapid rise of Netflix. Indeed, more than 90% of OTT video service users will watch content via a subscription service at least monthly in 2022.

Where and how Gen Alpha consumes content: From YouTube to Netflix to Roblox. Kids and AI: From usage to education and risks.

YouTube (8.8%) just barely edges out Netflix (8.2%) when it comes to share, but not in terms of daily time spent on the platform. In fact, Netflix viewers will spend 11 more minutes a day on Netflix than YouTube viewers will spend on YouTube this year, according to our forecast. Use this chart:. Understand where consumers are spending their time watching TV. Allocate TV ad spend.

Netflix is the top video streamer, already reaching more than half of the population. The race for subscribers has evolved into a race for ad dollars. 鈥淣别迟蹿濒颈虫 used to be seen as AVOD鈥檚 primary competitor,鈥� said our senior analyst Ross Benes. 鈥淣ow it could eventually become AVOD鈥檚 primary contributor.鈥�. More like this:. Report: Q4 2022 Digital Video Trends.

Netflix will generate 53.6% more ad revenues per ad-supported viewer than Hulu in 2024, per our new forecast. Netflix generates more ad revenues per viewer than other streaming services, which is attributable to Netflix鈥檚 high ad prices and the substantial amount of time its users spend on the service.

鈥淲e spend so much time talking about Netflix and Disney+, but neither of those companies will break a billion dollars in ad revenues this year, according to our forecast,鈥� our analyst Evelyn Mitchell-Wolf said on a recent episode of the 鈥淏ehind the Numbers鈥� podcast. 鈥淵ouTube gets two thumbs up.鈥�.

Disney+ and Netflix are poised to grow their ad-supported viewers the most. Advertising is new to Disney+and Netflix, so they have fewer ad-supported viewers than subscription services like Peacock and Paramount+, which have always had advertising. But we expect Netflix and Disney+ to grow their ad-supported viewers substantially next year, with 69.7% and 45.1% increases, respectively.

Users on Netflix this year are spending on average 18 minutes to choose what they want to watch. An increase of decision making of 50%. Marcus Johnson:. That's pretty true. Zach Goldner:. ... versus 2019. So choose what you want to watch and just prepare the come the holidays when you're sitting next to your family to watch that next holiday flick.

Netflix could make its ad-supported plan more appealing. Unlike Netflix, Disney+ does allow ad-supported viewers to stream premium-quality video on up to four devices simultaneously. That should give Netflix pause as Disney+ cements itself as the region鈥檚 second-most popular paid streaming platform. The digital video ad experience leaves much to be desired.

Because Netflix didn鈥檛 meet audience guarantees when its ad-supported tier was released last year; it had to give money back to advertisers. It鈥檚 unclear if Netflix will be able to sell a lot of inventory and actually deliver viewership. 鈥淲e know they have the total audience,鈥� said Benes. 鈥淏ut do they actually have the ad-supported audience?鈥�.

No longer a fledgling challenger advertising channel, CTV has narrowed the ad spending and viewership gaps considerably between itself and linear TV, absorbing more advertising budgets, and encouraging more streaming services鈥攊ncluding the notoriously anti-ad Netflix鈥攖o unveil their own ad-supported tiers.

Next year will see Netflix end its partnership with Microsoft in favor of developing its in-house advertising platform; meanwhile, its Xandr advertising subsidiary faces GDPR complaints. Our take: Microsoft鈥檚 search and advertising growth is a promising indicator of its ability to innovate and compete in digital advertising.

Prime Video is second only to Netflix in use. Some 71% of US adults use Prime Video, putting it second to Netflix鈥檚 77%, according to August 2023 ViewNexa data. Our September 2023 forecast shows 72.3% of subscription OTT video viewers will watch Prime Video in 2024, while 76.7% will watch Netflix. That puts Amazon on par with Netflix in terms of viewership. 3. Amazon has a wealth of retail media data.

Netflix Faces an Uphill Battle With Its Ad-Supported Tier. Subscribers aren鈥檛 interested in trading down. In November 2022, Netflix debuted its cheaper, ad-supported streaming tier in 12 key growth markets; Mexico and Brazil were among them.

YouTube and Netflix, where streaming viewers spend the most time, have both been making ad improvements. Netflix cut its cheapest ad-free plan, pushing cost-conscious viewers toward its ad tier. Netflix also restructured its Microsoft ad partnership and is lowering ad prices. YouTube has made several moves to limit ad blockers. Keep in mind, things could change.

Even Netflix made fewer shows. Ever since Netflix started making its own shows, it鈥檚 been busy growing its massive library. But Netflix released about 130 fewer originals in 2023 than it did in 2022, according to What鈥檚 on Netflix data cited by Bloomberg. Strikes contributed to reduced production. With writers and actors striking, content production slowed down significantly for several months.

Netflix and Disney have begun to see success with this strategy, and there鈥檚 no reason to believe Amazon won鈥檛 either. The FAST landscape will continue to develop and expand. The UK remains some way behind the US in terms of available FAST channels. However, as their popularity increases, new players will emerge.

Streaming CPMs stabilize: The $30 price point is highly competitive and far lower than the $50 or even $60 CPMs that rivals like Netflix and Disney+ burst onto the scene with in late 2022, showing that competition is causing streaming advertising costs to fall. Netflix and Warner Bros. Discovery drew negative attention in late 2022 for charging record-high CPMs.