蘑菇AV

Netflix鈥檚 upfront debut leaves Apple TV+ as possibly the only major digital-first programmer that has yet to join the fray. That could change if Apple launches an ad-supported tier, which seems plausible given its embrace of live sports.

My final prediction is a little bit more straightforward than my previous one, and that is simply that Apple TV is going to launch a bona fide ad tier as part of Apple TV+.

Our analysts anticipate that Apple TV+ will be the last major streaming service to launch an ad-supported tier. 7. Smaller walled gardens will cross-pollinate. 鈥淪maller walled gardens will cross-pollinate with bigger ones,鈥� Verna said, pointing to examples such as Google Ad Manager鈥檚 partnership with X (formerly Twitter) or Pinterest and Snapchat cutting deals with Amazon.

In places like the US, video entertainment platforms such as Netflix, Hulu, Max, Disney+, and Apple TV+ have become drivers of the national media culture. This is partially the case in Western Europe, as well, but sub OTT has not quite conquered the middle-income and less wealthy regions of the world. Penetration will tick up in 2024, but there will still be huge differences between the regions.

So streaming services all offer a hybrid at this point for the paid streaming services do except for Apple TV plus. But the degree to which they really seek out and rely on ad supported customers varies widely like Netflix and Max are on the low end and then Prime Video and Peacock would be on the high end. Marcus Johnson (06:38):.

Ad spending growth is tapering off, but major changes are coming to the market, including the deprecation of third-party identifiers, a new era in TV ad measurement, and growing use of AI in advertising.

That's more viewers than ESPN+ and Apple TV+ and nearly as many as Peacock and Paramount+ as well. So they're up there. They're not up there in the top 3 or 4, 5 streaming services, but they're definitely playing around the six seven mark in terms of ranking by viewers. There's another one also, Freevee owned by Amazon and Crackle. They've got about 35 million viewers each, which again is not nothing.

The over-the-top (OTT) streaming landscape is rapidly becoming as crowded as the early days of cable TV. It is vital that marketers understand the scale, reach, and prospects of the various players in the industry.

Our latest forecasts for TV and CTV ad spending, as well as those for time spent with each medium, point to CTV鈥檚 inevitable eclipse of its linear counterpart.

I'll renew when I want to, and I'm switching over to Apple TV+ to get Ted Lasso. Oscar Orozco:.

So subscribing to a Netflix and a Paramount Plus and a Apple TV Plus, et cetera, Disney Plus, they add up. As you add five or six a la carte streaming services, it starts to get pretty pricey as well. So I think in economic times that are a little uncertain, people are pretty sensitive to the cost of entertainment.

Viewership in Canada is changing, as more eyeballs turn to connected TV and digital video for long-form content.

So it could still be on the way, but as of yet still no ad-supported tier on Apple TV. They're the last holdout. Marcus Johnson:. Yeah. All right, folks. Let's move to question two. Still about Netflix. They just reported their Q3 earnings, and the company noted that revenue grew 8%. That's the fastest it's grown in a quarter in the last year and a half, so pretty good.

Our first-ever mobile video flash survey explores the latest consumer trends in Latin America鈥檚 rapidly evolving digital video landscape, and what they mean for the region鈥檚 biggest media companies this year.

Max canceled 26.9% of its shows between January 2020 and August 2023, ahead of streaming鈥檚 overall cancellation rate of 12.2%, according to Variety Intelligence Platform and Luminate.

Apple TV, of course, has been licensing sports content against which they sell advertising. The same is true of other platforms that we don't yet break out individually, but they're part of that long tail. There's also a lot of revenue that flows to players like the TV manufacturers that sell ads and adtech middlemen are really getting in on the CTV action because most of it is sold programmatically.

I mean, Apple TV just signed a deal to be distributed on Prime Video, for example, because they're really struggling to increase subscriptions meaningfully since almost everyone it seems has a streaming subscription of some kind. So yeah, I'm curious what in a year from now they're going to be kind of teeing up as the next big initiative at the company. Marcus Johnson (15:29):.

So Oscar, to put that in perspective, that's half of the Apple TV plus subscription that you forgot to cancel. Marcus Johnson:. That's the problem though, is you can't run out of candy, so you have to get more, right? Is that how it works? Zach Goldner:. 蘑菇AV that one. Marcus Johnson:. I've only done it once. I bought candy.

Like for subscription revenue like Apple TV+ and Peacock, which had nothing a few years ago, have way more users than they did in the past, and they're going to have more next year because they have so much more room to grow and they sell for a cheaper price. Netflix is kind of tapped out in the U.S., at least. This is all U.S. data that we've been talking about here. Marcus Johnson:. Right, right.

The least essential, some of those lower tier ones, you mentioned Peacock. 35% of people prioritizing their Apple TV+ with just 28% and Epic's now with seven. That's what we've got time for the lead. Time for the halftime report. Ah, nope, we did that already. Let's do the second half of the show instead.

Just last month, Netflix executives discussed raising, not lowering, prices, much like Disney, Paramount+, Apple TV+ and others who have raised prices or announced hikes. Paul, what'd you make of this recent international pricing move from Netflix? Paul Verna:. Well, call me cynical, but I think it's just a way to goose the subscriber numbers, and frankly the markets where they're doing this.

If you look at the subscribers that services like Paramount Plus or Peacock or Apple TV have, it is nowhere near even 100,000,000 or it's quite a bit shy of 100,000,000. So the question is, what do these streaming services do? Like Paul said, I think consolidation is definitely one answer and it's something we're already starting to see. (07:59):.