• by Wayne Friedman , December 13, 2023

Although legacy-owned TV-based streaming platforms are projected to see a nearly 18% rise in advertising revenues this year, overall TV/CTV video business from traditional TV companies will see a “shockingly bad” 11% drop in ad revenues in 2023 versus 2022, according to MoffettNathanson Research.

Total TV-streaming ad revenues are estimated to land at $74 billion this year.

Eight legacy-owned major advertising-supported streamers -- and Roku, an independent company -- are projected for the 2023 year to rise 17.5% to $11.7 billion. Next year, the business for advertising-video-on-demand platforms is projected to accelerate at a 21% rise in ad revenues to $14.2 billion. 

Total TV will take a breather next year from its persistent declining trend ad revenues picture -- moving up glacially 4% to $77 billion -- helped by 2024 being a Presidential election and Summer Olympic year.

Looking at the Q3 2023 period, a group of nine mostly legacy-owned ad-supported streaming platforms grew 12% to $2.1 billion, according to estimates and analysis of company reports by the stock market research company.

Topping the list: Hulu at $750 million, the only one of the group to see a decline year-over-year -- 7%.  On the flip side, rising strongly was NBCU’s Peacock -- up nearly 40% to $355 million, now in second place behind Hulu.

The next four include Roku Channel, 19% higher to $275 million; Paramount Global’s Pluto TV, inching up 1% to $240 million; Netflix, a new entrant, now at $221 million in its first third quarterly report; and Fox Corp.’s Tubi TV, adding 30% to $215 million.

Behind this group are Paramount+, adding 54% to $146 million; and Warner Bros. Discovery’s Max and other direct to consumer channels -- up 25% to $122 million. 

Another new advertising-supported option -- Disney+ was at $51 million, overdelivering on MoffettNathanson’s projections of $22 million for the period.