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But they also indicate that advertisers investing heavily in SVOD and ad-supported video-on-demand platforms like Netflix and Hulu might need to rethink their ad spend. Our take: The shift represents the need to restructure how advertisers reach their target audiences.

Netflix鈥檚 ad path: After a rocky start and fierce competition, Netflix is hitting a stride with its advertising business. Over 55% of new subscriptions in its ad-supported markets came from its Netflix with Ads plan, and we expect the company鈥檚 US ad revenues to pass $2 billion this year.

Netflix, Disney+, Max, Tubi, and Paramount all have a time spent share that exceeds ad revenues. In order to boost revenues without inundating users with ads, streamers will continue to partner with retail media networks to improve ad targeting and attribution capabilities. The trend toward CTV will be especially pronounced as retail media turns into commerce media.

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.

The addressability of CTV audiences has dramatically increased since Netflix introduced ads more than two years ago. Implications for retailers. Retail media ad spending topped C$3 billion in 2024. Retail media formats are expanding as the market matures. GenAI deployments are now table stakes for retailers.

Netflix is the leading subscription-based platform, although it launched an ad-supported tier in late 2022. Following Netflix鈥檚 lead in both ad-supported and subscription-based video are Amazon Prime Video, Disney+, Apple TV+, and Crave from Bell Media. Crave鈥攚hich is home to HBO Max content in Canada鈥攊s a homegrown service and has gained more than 1 million subscribers since 2020.

Netflix CFO Spencer Neumann is optimistic about the future of ads on Netflix. 鈥淲hen you get into 鈥�26 and beyond, [advertising] can be even more meaningful and, hopefully, it becomes to the point where it is a primary [revenue] contributor, given all of that engagement and reach that we鈥檙e building,鈥� he said on the company鈥檚 earnings call last week.

Netflix first, but over one hour of Netflix; people spend over an hour on Netflix. Spotify second, 54 minutes, obviously music, 54 minutes a day. And YouTube is third with 51 minutes a day. So it's doing well there and it's doing well.

While Apple TV+鈥檚 viewer base is steadily increasing, it is still significantly behind competitors like Netflix and Amazon Prime Video for subscription OTT video viewers, per our 2025 forecast. The MLB might prefer platforms with a higher subscription base and more revenue鈥攑erhaps the likes of Netflix, Hulu, and Disney+, which generate the most OTT subscription revenues.

Disney kicked off its password-sharing changes in September, but its first quarter with the new policy did not give its streaming venture the same boost that Netflix enjoyed in 2023. Netflix benefited from subscription jumps for several quarters after introducing account sharing restrictions, but Disney鈥檚 family-oriented content might mean it won鈥檛 get the same boost.

Netflix and Disney+ won鈥檛 add many viewers this year, but they will continue to generate the highest subscription revenues among streaming services. Netflix will receive $17.12 billion in US subscription revenues in 2025, per our forecast. The Walt Disney Co. will receive just under $10 billion from Disney+, ESPN+, and Hulu鈥檚 subscription video-on-demand (SVOD) product combined.

But now we're also seeing them strike deals with premium streaming services like Netflix or Amazon Prime Video, and it's going to be very, very hard for these top name creators to resist those kinds of deals.

Ads go live on Netflix and Disney+, YouTube ad revenues decline, and streaming services get creative about financing content production.

So I think that's part of what's fueled the tech boom, so to speak, in sports licensing, and it's just going to continue with Netflix as now a major player. Marcus:. Yeah, great arguments, gents. There was another point to the Netflix and sports trend prediction from The Economist, basically saying live sports are a good fit for Netflix now that they offer ads.

This was likely driven by more inventory and downward ad pricing trends on premium streaming services including Netflix, Disney+, and Max. Digital display. Average digital display eCPMs rose by 2.2% QoQ and 3.4% YoY in Q2 2024. Within the display category, social display eCPMs saw the biggest increases at 8.4% QoQ and 11.0% YoY in Q2 2024.

YouTube's US TV share reaches record 9.7% in May: The platforms surpasses Netflix and dominates streaming鈥檚 market share with nearly 25%.

On today's podcast episode, we discuss what to make of Google deciding to keep cookies, whether a Spotify for movies service could work, if people will want to have a conversation with their newspaper, if Disney can be as addictive as Netflix, why there are more Olympic teams than countries, and more. Tune in to the discussion with host Marcus Johnson, our analysts Ross Benes and Blake Droesch, and vice president of content Paul Verna.

US adults will spend 1 minute less with media this year than in 2022, although the longer-term topline trend is stable. Among formats and platforms, CTV is grabbing share, mobile is approaching a plateau, and Netflix and TikTok reign supreme.

Netflix viewership grows thanks to hit show 鈥楤ridgerton鈥�: While Netflix is seeing gains, it still falls behind NBCU, YouTube, and Disney.

Streaming makes ad spending gains, Netflix experiences growing pains, and advertisers encounter a soft upfront market.

Our take: YouTube鈥檚 creator-driven ecosystem means that, unlike streaming platforms like Netflix, it doesn鈥檛 require showrunners and production teams, allowing for easy library expansion. Maintaining a focus on app features could keep YouTube鈥檚 many mobile users engaged as it pushes to dominate in TV.

Streaming is dominating US viewership, accounting for 43.8% of total viewing time, per Nielsen, and most of the time spent streaming is coming from YouTube and Netflix. Free ad-supported streaming television (FAST) channels are showing promise, with broadcasting media company MediaCo noting 18% YoY growth in its FAST viewer base. AI-powered tools are transforming marketing.

Notably, Roku will no longer disclose streaming household metrics quarterly, following a similar move by Netflix. By the numbers:. Revenues hit $1.02 billion, a 16% YoY increase, slightly above expectations. Net loss narrowed to $27.4 million, beating expectations. Platform revenues rose 17% to $881 million. Devices revenue grew 11% to $140 million, though margins remain under pressure from tariffs.

Brands like Netflix, Gucci, and Anheuser-Busch have returned to Fox News, signaling a shift away from post-2020 brand safety concerns. Advertisers appear more comfortable distributing spend across ideological lines, viewing media neutrality less as a brand risk and more as a strategic hedge.