Netflix Forecast To Hit $1.2B, Disney+ $1.8B In Advertising By 2025
- by Wayne Friedman , June 14, 2022
Netflix and Disney+ will ramp up their advertising options for their streaming services to $1.2 billion and $1.8 billion in ad revenue, respectively, in three years.
“Despite much lower streaming minutes, we expect Disney+ to monetize U.S. advertising at a faster pace than Netflix, especially given the existing bundled sales approach that Disney is utilizing in their current upfront discussions,’ says Michael Nathanson, senior research analyst and co-founder at MoffettNathanson Research.
Both services look to start advertising operations by late this year of early next year, with Disney+ looking to get an early jump due to its existing ad infrastructure -- especially when it comes to the Hulu ad-supported option for its streaming service.
For 2023, Disney+ is forecast to reach $596 million, and Netflix, $150 million -- estimated to grow to $1.5 billion and $551 million in 2024, respectively.
advertisement
advertisement
Looking at a broader view, MoffettNathanson believes other competing services in the ad-supported streaming space will show some fast growth soon.
For example, it projects that Disney’s Hulu will lead all streamers -- $2.7 billion this year and $4.1 billion in 2025. NBCU’s Peacock to get to $1.3 billion this year, $2.1 billion in 2025.
Other services are predicted to move more slowly: Paramount+ to $370 million in 2022 and $1 billion three years from now; HBO, ($229 million, and $724 million); and discovery+ ($391 million, $654 million).
But with the highly watched CPM metric -- the cost-per-thousand viewers -- it believes HBO Max will command the best result due to the overall quality of its programming -- getting to a $48 CPM in 2025. Disney+ is predicted to come next ($43), followed by Netflix ($37); Discovery+ ($35); Paramount+ ($35); Peacock ($34) and Hulu ($33).
Although Netflix has no existing advertising infrastructure, in its favor is that it has a dominant piece of all U.S. streaming minutes -- 47% -- followed by Disney+ at 13%, Walt Disney’s ad-supported Hulu, at a 23% share; HBO Max (8%); Peacock (5%); discovery+ (4%); and Paramount+ (2%).
