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This is the Q1 2025 installment of our quarterly 鈥淎d Spending Benchmarks鈥� series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

This contributes to a drop in total inventory because streaming ad loads are lighter than linear TV, and many streaming viewers use ad-free plans. 鈥淎s supply becomes more finite, demand will increase and the upfront will continue to be a focal point for the industry,鈥� said Aaron Lilly, executive vice president, client success and growth at VideoAmp. But the upfronts aren鈥檛 for everyone.

In some jurisdictions, it was part of a subscription offer, while in others, it was limited to relatively few, select events so as not to impinge on broadcast rights. Despite these restrictions, the 2024 version saw significant viewership on YouTube. Implications for brands. Sports viewers expect advertising next to live sports content.

Peacock reduced losses, gained subscribers in Q1: The successes indicate that the streaming platform could become more enticing for advertisers.

Roku delivered strong Q1 results and acquired Frndly TV: The deal boosts live content and supports subscription growth without overspending.

Our take: Video podcasts are the next frontier for audio and video streamers alike, and unique features and less-expensive subscription options can help fuel adoption. YouTube and Spotify are the top dogs in their respective categories, but as direct competitors, Spotify has a long way to go.

Balancing subscription and ad revenues. Netflix has reported a 13% YoY rise in Q1 revenue. However, as subscription costs continue to rise, the streaming service is 鈥渁pproaching the ceiling in the US where their monetization is the highest,鈥� said Paul Verna, 蘑菇AV鈥檚 vice president of content, on a recent episode of "Behind the Numbers.".

The average cost of streaming subscriptions jumped 22.2% YoY in 2023, far outpacing both pay TV increases (4.8%) and inflation (3.6%), per our analysis; In 2024, streaming subscriptions increased 12.6%, again outpacing both other measures, though less dramatically.

Why CPMs are falling at Upfronts: Increased inventory and viewership is causing streamers to soften prices during the buying season.

Nielsen鈥檚 Gauge previously found that FAST services like the Roku Channel, Tubi, and Pluto TV account for a higher share of US TV use (4.3%) than the combined usage of Paramount+, Peacock, and Max (3.7%), which all include advertisements for specific subscription tiers. This indicates that advertisers could find more value in FAST services than ad-supported subscription video-on-demand.

Digital eclipsed traditional pay TV among live sports viewers in 2023. As that lead grows, the growth of women鈥檚 sports and betting apps provides marketers with opportunities to reach new audiences.

TV Media revenues declined 4%, driven by a 4% drop in ad revenues and 7% decline in affiliate and subscription fees as cord-cutting continues to erode the traditional TV business. CBS still dominates in viewership, with seven of the top 10 primetime shows and NFL broadcasts delivering massive audiences.

The ad-supported tier costs $16.99 per month, while the ad-free option is $29.99, saving consumers up to 43% compared to subscribing to each service separately. Other sources back up Antenna鈥檚 assertion.

This shift aligns with Apple鈥檚 broader goal to boost Apple TV+ subscriptions, moving away from risky, high-budget films and instead prioritizing content that can directly contribute to subscriber growth.

Warren urges DOJ to investigate Disney鈥檚 Fubo acquisition over competition concerns: The senator warns the deal could eliminate a key streaming rival, raising prices and reducing consumer choice.

But we do estimate that US adults will spend about an hour more per day watching traditional TV (2 hours, 55 minutes) than subscription streaming services (1 hour, 49 minutes) this year. Despite the influx of sports events to streaming, most sports still run through traditional TV.