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Ultimately, the central concern revolves around how these consolidations affect consumer costs, as bundling unpopular channels with must-have sports programming could lead to higher subscription prices. 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.

Rising subscription costs drive consumer behavior, with inflation concerns pushing viewers toward ad-supported options. Live content has emerged as a key differentiator as major platforms invest in live sports content, as viewers accept commercial breaks during natural game stoppages and timeouts.

Our take: As ad-free streaming services grow, Rembrand's AI-powered approach to product placement could provide brands a scalable way to reach ad-resistant audiences.

The service is an entry point to the company's broader ecosystem, which could act as a gateway to hardware sales and bundled subscription services. By timing the preview with high-profile content releases and minimizing access barriers, Apple TV+ is positioning itself as a serious contender in a crowded market.

Time spent with sub OTT video is steadily increasing, for example鈥�31 minutes in 2019 will increase to 53 minutes this year. Meanwhile, BVOD has seen similar, if less marked, gains鈥攔ising from 20 minutes to 28 minutes over the same period. Digital video time is thus set to overtake traditional TV time next year.

OTT companies do earn ad dollars outside of CTV. Subscription OTT services, for instance, will earn $2.48 billion in ad revenues on mobile or other devices in 2026. But their bread and butter will remain CTV, where they will generate 84.7% of their ad sales in 2026, for a total of $16.23 billion across devices. CTV also serves ads for a small but rapidly growing part of retail media ad sales.

Digital ad spend tops $300 billion in 2024: Video dominates growth, driving display advertising's share and reshaping ad strategies through social and OTT.

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.

CTV is popular among younger Black viewers, who are also likely to have multiple streaming subscriptions. Black digital video viewers consume a mix of paid streaming services, free OTT services, and free ad-supported platforms. Roughly 73% of digital video viewers subscribe to three or more paid streaming services, according to a July 2023 Nielsen report.

Our new forecast for ad-supported Amazon Prime Video viewers anticipates that 130.4 million subscribers will stick with ads rather than pay an additional $3 a month for ad-free service. That figure represents 80.0% of the total Prime Video audience of 163.0 million in 2024 and will put Prime Video well ahead of Hulu as the largest ad-supported subscription OTT (sub OTT) video service in the US.

Over the next few years, automated transactions, like programmatic guaranteed and private marketplaces, could account for at least half of upfront deals by agency holding companies, according to Nicole Scaglione, global vice president of CTV/OTT and online video at PubMatic. Overall upfront spending will likely increase this year. Digital鈥檚 upfront gains will more than make up for linear TV鈥檚 losses.

Channel subscriptions through TV devices jumped 40% after YouTube simplified its interface with one-click subscription buttons. Creator revenues from TV-viewed content rose over 30%. Why it matters: YouTube's living room success is reshaping the streaming landscape. The platform has cemented its evolution from a mobile-first service to a legitimate competitor to linear TV.

Study finds 57% of streamers choose AVOD tiers: Consumers seek affordable alternatives amid subscription price hikes.

It is one of the most common digital activities in the world, but many of these viewers won鈥檛 yet be watching OTT video via familiar platforms like YouTube or formats like paid sub OTT streaming鈥攁lso known as subscription video-on-demand (SVOD). OTT video entertainment is mainstream and available almost everywhere, but billions of people still haven鈥檛 come onboard.

In part one of this two-part podcast episode, we discuss some predictions for 2024 that are too specific to be 100% certain about but could still come true, including: which subscription video-on-demand (SVOD) platform Apple will likely buy, where metaverse playgrounds will spring up, and what the ruling between Google and the US Department of Justice will be. Tune in to the discussion with our vice presidents of content Suzy Davidkhanian and Paul Verna and analyst Max Willens.