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This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

Big platforms like Netflix, Disney+, and Amazon Prime Video have incorporated ad-supported tiers into their previously subscription-based approaches. We project connected TV (CTV) ad growth will reach 21.2% this year, outpacing the overall media market. CTV advertising is becoming synonymous with TV on the whole.

Rather than getting users who have become accustomed to a decade of ad-free streaming to jump on the ad-supported train by axing cheap subscription options and cracking down on cord-cutters, Amazon is simply making ad-supported streaming the default for all Prime members. To avoid ads, users will have to pay an extra $2.99 monthly.

On today鈥檚 podcast episode, we discuss the next waves to hit the streaming world: which platform will emerge as the streaming hub, how will 鈥渃ontent tiers鈥� change viewer behavior and subscriptions, and can streaming maintain sizeable enough audiences for awards shows and Presidential debates? Tune in to the conversation with Director of Podcasts and host Marcus Johnson, our Senior Editor Daniel Konstantinovic, and Vice President Paul Verna. Listen everywhere and watch on YouTube and Spotify.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

Research company Antenna noted that November was the first month they observed the majority of signups for premium SVOD services going to ad-supported plans versus ad-free ones. So the majority of signups going to ad-supported versus ad-free.

The increased focus on its ad-supported tier is a concession of sorts for Netflix, which maintained an entirely subscription-based model for years. 鈥淚 think [the move to AVOD] is going to happen kind of slowly,鈥� said Verna. This was originally featured in the eMarketer Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

Streaming鈥檚 AVOD craze: Eager to grow revenues and subscribers, streamers turned to ad-supported subscription tiers, opening up new channels for advertisers and claiming share from TV. Over 33% of US consumers were cord cutters in 2022, a historic shift that placed advertising power in the hands of streamers. The new kids on the block like Netflix and Warner Bros.

On today's episode, we discuss whether generative AI is actually coming for your job, how much customers really care about a company's values, whether there is a subscription divide among groups of people, whether audiobooks could be the next frontier for advertising, some karaoke facts, and more. Tune in to the discussion with our analysts Evelyn Mitchell and Max Willens and vice president of Briefings Stephanie Taglianetti.

Sunday Ticket propels YouTube TV to 48% growth: The pay TV service has seen subscriptions jump significantly since it acquired the costly streaming rights.

Creator economy wars heat up: TikTok launches new subscriptions, while Patreon鈥檚 Autopilot tool boosts fan conversion rates.

Much of this increased viewership will be ad-supported, as viewers continue flocking to these offerings in exchange for less expensive (or free) subscriptions. As streaming costs continue to rise, expect free ad-supported streaming TV and ad-supported video-on-demand services to climb as consumers opt into advertising in exchange for watching their favorite content more cost-effectively.

Zoom out: The rise of FAST channels has been a notable US trend as rising costs of subscription-based services lead consumers to alternatives. Services like Amazon's Freevee, Pluto, Tubi, and Roku have all experienced significant growth, making the Google TV network a timely addition for advertisers seeking to capitalize on this shift.

US Time Spent With Media Forecast 2023 (Insider Intelligence subscription required). A guide to YouTube鈥檚 video ad formats. Instagram eyes longer Reels, challenging YouTube's dominance with long-form videos. YouTube will use its own co-viewing data for CTV advertising, raising concerns about transparency.

One big sector for growth is going to be sports, I think, and we've seen over the last two years, streaming services spend billions on sports rights and the services that have scooped up the most valuable ones are those with an already large subscription base. Because if you're a sports league, you want to reach as many consumers as possible.

Netflix cuts subscription prices in over 30 countries. Gen Z TV viewers spend less time with digital video. 5 things to know about the creator economy in 2023. Retail media ad spending is on track to surpass TV. Yesterday鈥檚 Chart of the Day: Get smart.

It also doesn鈥檛 rely on prescheduled programming or require a cable subscription. 鈥淔or more and more people, watching TV means watching YouTube. 鈥� But the 鈥榥ew鈥� television doesn鈥檛 look like the 鈥榦ld鈥� television. It鈥檚 interactive and includes things like Shorts (yes, people watch them on TVs), podcasts, and livestreams,鈥� YouTube CEO Neal Mohan said in a blog post.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

As the largest subscription streamer, what happens at Netflix ripples through the rest of the market. Bundles typically offer a steep discount to viewers who select ad plans. The past year has also seen some streaming services eliminate their cheapest ad-free plans and raise prices more on their ad-free plans than on their ad-supported ones.

Marcus, you should be using our numbers because the viewership is more important than subscriptions. They've got Amazon way out in front here because most households in the US are Amazon Prime households, and so you just get this service. But far more people watch Netflix, and we've got Hulu and Disney plus pretty close to Amazon also. Zach Goldner:.

You're getting the same thing as you're getting a cable subscription.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

We still haven't seen an effect on subscriptions from that, but the change in perception there, I think, is a noteworthy one. Marcus Johnson:. Yeah.