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The number of streaming services with at least $1 billion in US connected TV (CTV) ad revenue is set to quadruple from 2020 to 2026, per our March 2024 forecast. The boom isn鈥檛 without its growing pains, though. Advertisers still need to face confusion with fragmentation, unreachable audiences who pay for ad-free streaming, and problems with campaign measurement. We delve into these three challenges and provide solutions.

Streaming may see short-term subscriber gains as consumers seek affordable entertainment鈥攂ut that growth could be undermined by higher churn and softer ad revenues. Companies betting big on sports rights, AVOD, and international hardware ecosystems may need to reassess how they protect margins without sacrificing user experience.

Our take: Amazon says its AI recaps will be rolled out to non-Amazon devices in the coming months, which could improve the user experience even outside its suite of smart devices and Fire TVs鈥攁n important step to take given the abrasive launch of ads and the steady flow of streaming services looking to piggyback off the company鈥檚 enormous subscriber base.

It could get ahead of the game if its AI-powered offering helps viewers find new content more easily, which could pull subscribers from rival platforms. Streaming users have complained on Reddit about search features on Hulu, Amazon Prime, and Max that are 鈥渋llogical鈥� and frequently won鈥檛 surface results for titles that are available.

Comcast Q3 performance fueled by streaming and live sports: Olympics and Peacock growth attract high-value audiences for advertisers.

Global Disney+ subscribers: 118.3 million (1% YoY increase). Hulu subscribers: 51.1 million (2% YoY increase). Disney faced increased pressure from investors to make its streaming division profitable after years of losses. After a year of steep layoffs, the company reached that goal one quarter earlier than it expected.

Price hikes helped Disney offset subscriber losses: Disney remained relatively still in its earnings report, but the year ahead will have major shifts.

Streaming cancellations rise as costs climb: Major platforms like Netflix and Disney+ are adapting with new strategies.

We forecast that Premium subscribers totaled 48.6 million last year and will reach 53.4 million by 2028, covering 15.2% of the US population. Revenues from Premium (including YouTube Music) are projected to climb from $2.54 billion in 2022 to $4.54 billion in 2026, even as annual growth slows to 12.1%.

What it means: Streaming is still a subscription-based business, especially for Netflix, which relies more on subscriptions than any other streaming service that sells advertising. But CTV ad revenues still account for about one-third of streaming revenues, and their share will increase over the next two years. 5. Streaming subscribers are leaning into ads.

YouTube Premium hits a subscription landmark: The service now enjoys 100 million subscribers after YouTube spent much of 2023 cracking down on ad blockers.

On today's podcast episode, we discuss why Netflix was able to grow subscribers and revenue by such an unexpected amount, the biggest question surrounding its ads business, and the most significant threat facing Netflix at the moment. Tune in to the discussion with host Marcus Johnson and analyst Daniel Konstantinovic.

Eight in 10 US Amazon Prime Video subscribers will be ad-supported this year, according to our February 2024 forecast.

On today's episode, we discuss why Disney+ lost around 3 million subscribers, how much its new ad-supported tier can move the needle, and whether The Walt Disney Co. is more likely to buy the rest of鈥攐r sell鈥擧ulu. "In Other News," we talk about how connected TV (CTV) viewers feel about "enhanced" ad formats and what a new category of video called "accompanying in-stream" is all about. Tune in to the discussion with our analyst Paul Verna.

On today's episode, we discuss what's going on with Netflix's ad-supported tier, what its plans to crack down on password sharing could do to viewership, and what Netflix's subscriber growth will look like over the next few years. "In Other News," we talk about fuboTV's current position in the market and what people stream the most on their TVs. Tune in to the discussion with our analyst Paul Verna.

Netflix reports strong Q2 growth: Subscribers surged to 8.05 million, with ad-supported tier driving revenues and engagement.

During recessions, consumers spend more time at home鈥攎eaning they place more value on television and streaming services as affordable entertainment options, per Oppenheimer analysts. The platform鈥檚 focus has shifted from subscriber counts to average revenue per user (ARPU). Its ad tier, launched in 2022, is a major area of focus for the company in 2025.

CEOs鈥� politics impact their brands: Hastings鈥� endorsement triggers Netflix boycott, drawing parallels with Musk's controversies impacting Tesla and X.

Streaming investments drive Paramount鈥檚 layoffs: the company struggles to balance growing debt with declining traditional TV ad revenues.

Adding to its suite of customization tools, the use of AI could help enhance subscriber interest amid price hikes and provide personalized music suggestions.

Veo 2, Google's advanced text-to-video generator, is now available to Gemini Advanced subscribers鈥攁dding the ability to generate high-quality video for advertising and social content. Key takeaway: Google is repositioning Gemini as the foundation of its AI-first future. By baking Gemini into every screen, speaker, and surface, Google wants developers to build around it and marketers to prioritize it.