SMI says Netflix has a clear opportunity to hit this "sweet spot" of $25-$45 CPM, which few CTV/digital media sellers have attained. Hulu is just below this mark at $24 CPM, while at the high end is
HBO Max at more than $50. YouTube is at the low end with $16, but is the current leader in median monthly impressions with around 1.7 million.
Netflix has few challengers in streaming minutes of viewing, but there is a growing list of second-tier and third-tier competitors, according to MoffettNathanson Research's analysis of Q2 2022 Nielsen
Disney's Hulu can be picky about what political ads it wants -- or not wanting them at all. TV stations are a different situation.
The latest Hub video monetization study also finds viewers' estimates of their total TV spending and what they think is a "reasonable" amount to spend on TV are both declining, and just 20% say
they're willing to pay to share accounts.
Virtual pay TV subscribers grew 17% in Q1 to 14.9 million, while total pay TV business sank 5.1% YOY to 81.05 million, MoffettNathanson Research found. Total traditional subscribers (sans virtual)
-- cable, satellite, and telco -- amount to 66.2 million, down 9% from a year ago -- a loss of 1.9 million subscribers.
Cord-cutters now make up 38% of CTV households, compared with 22% in 2020, as more people abandon cable and satellite service.
"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
MoffettNathanson senior research analyst Michael Nathanson.
The proportion of subscribers of three years' duration or longer who are cancelling is rising.
Total Q1 national TV linear advertising was up 4.7% to $9.1 billion, but without the Olympics, national TV had a 2.6% drop, while total national TV viewing sank 5% to 2.89 billion minutes, a
MoffettNathanson report finds. In better news, AVOD services were up 63% to $1.9 billion in ad revenue.
A large library of content is the No. 1 reason that viewers will hold on to a streaming service subscription instead of canceling it.
The remaining ad dollars have gone to digital platforms including YouTube and social media. MoffettNathanson estimates $13 billion was "lost" in TV ad budgets in 2021, and that the total will hit $37
billion in 2025. These results are calculated on TV maintaining its share of nominal U.S. gross domestic product, which it says is 0.38%.
Netflix has maintained its spot as the most popular video streaming service in the past couple of years.
Subscribers to video apps may be more likely to cancel service after bingeing on content as prices rise.
Total "churn" was 6% in the second quarter of this year, down from 8%, according to Kantar Entertainment on Demand.
But when it comes to music, 45% of consumers overall -- and 67% of Millennials -- say they would rather pay than have ads on their streaming service.
The largest and most established streamers' share of new U.S. SVOD subscriptions was down to 7.4% in Q4, while Amazon Prime Video and newbie HBO Max had 18.2% and 19.2% shares, respectively.
Total CTV advertising will soar 27% to $8.11 billion in 2020, according to eMarketer, up from $6.38 billion a year ago. YouTube will be the biggest individual platform at a gross total of $2.9
billion. But after content providers take their cut of ad revenue, the platform will net $1.5 billion -- up 32% from $1.14 billion a year ago.
While the vast majority of advertisers have policies "requiring" or "requesting" media to use pre-approved measurements as the basis of their ad buys, many turn a blind eye when dealing with big
digital media suppliers, especially Google and Facebook. While that's not necessarily a shocking finding, the research being released today by Advertiser Perceptions comes at a time when regulatory
scrutiny is piquing for big digital media platforms, including some antitrust reviews for at least one of them: Google.
From July-September, Peacock took 17.2% of new premium streaming subscribers with Amazon Prime Video at 16%, according to Kantar, followed by HBO Max at an 11.3% share.
Disney+ U.S. subscribers are estimated to grow to 52.8 million in 2024 from MoffettNathanson's projection of 35 million by the end of the year. In addition, it expects profitability of $260 million
for Disney+ in 2024.
In comparison, in 2018, 69% reported subscribing to Netflix, Amazon Prime or Hulu, reports Leichtman Research Group. And 40% of U.S. adults now stream an SVOD daily.
Diisney+ and Hulu will drive Disney D2C revenue of $11.2 billion this year, estimates Macquarie Research -- far exceeding streaming's contribution to total revenues for other big entertainment
players--except Lions Gate.
Virtual pay TV providers for the first time ever have lost subscribers on a quarter-to-quarter basis, according to MoffettNathanson Research. These providers were once considered the savior of
traditional pay services such as cable, satellite and telco.
Streaming services now account for 19% of total audience usage of the TV/OTT marketplace, and nearly a third of it is going to Netflix. That's one of the key findings of the 2020 edition of Nielsen's
annual Total Audience Report.
Disney+ is seeing increased consumer intent to purchase the service against flat intent for other premium streaming services -- Netflix, Amazon, Hulu, Apple TV+ and the forthcoming HBO.
As Disney takes control of Hulu, the service's advertising rates appear to be languishing, according to a "Research Intelligencer" analysis of CPM data from SQAD's MediaCosts database.
Year-over-year, SQAD data shows Hulu down about 18%.
Any company seeking to launch a streaming video service in the next year or so needs to be heavily focused on what consumers want and cognizant of the competition.
DTC consumers spend 13 hours per week watching live or on-demand streaming TV -- 70% more vs. time spent on social media.
Like the conventional tv viewing marketplace where a few big channels dominate shares of viewing, comScore has done the same for the over-the-top viewing universe. But unlike terrestrial, cable and
satellite TV, the dominance of the biggest players is even more stratified. In terms of pure reach, Netflix's 75% is by far the most distributed OTT platform, followed by YouTube's 50%, Hulu's 36% and
Amazon's 28%. But drilling below the pure OTT household reach numbers, comScore shines light on some underlying strengths -- and stickiness -- among the Big 4.