As viewers have moved from traditional broadcasting to streaming, so have the advertisers.
For the first time, Netflix held an in-person announcement for its Upfront season that was attended by a star-studded cast and jaw dropping announcements.
The Upfronts are a media buying process in which advertisers and entertainment companies negotiate deals based on the promise of advertising opportunities in new programs and content. In addition to being welcomed by athletes and celebrities, the advertisers are granted sneak peeks at the upcoming slate of fall programming and the opportunity to advertise in those programs.
Netflix announced at its first in person Upfront:
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The platform now has 40 million monthly users on its ad-supported plan globally, up from 23 million just four months ago.
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Netflix will air the NFL’s Christmas Day games for the next three years.
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Netflix also plans to roll out its own proprietary adtech platform by 2025.
At present, 46% of households have made the decision to discontinue their subscriptions to conventional cable or satellite services. In the absence of a traditional TV audience, media advertising budgets were faced with the decision to move dollars to streaming or a “let it die” mentality.
Parks Associate’s data finds ad-supported services such as AVOD and FAST are at 42% adoption as of Q1 2024, confirming Parks Associates predictions that more consumers will find these more cost-effective options appealing. This migration also benefits streaming providers, who earn more revenue from advertisements than subscription fees.
And for all of you who want to see all the announcements coming out of all the upfronts, our friends at Adweek have a great website devoted to all the upfront news.
For more on Parks Associates research related to AVOD and FAST and the streaming landscape visit https://www.parksassociates.com/products/video-services-ott-pay-tv/video-services-dashboard-1q-2024.
