This week’s Future of TV Briefing looks at how Netflix’s and Disney+’s plans to add ad-supported tiers are ushering in the broadcast era of streaming.
The new broadcasters
The key hits:
- Disney+, HBO Max-Discovery+, Hulu, Netflix, Peacock and Paramount+ stand to be the ad-supported streaming equivalents to broadcast TV networks.
- The rise of these streaming broadcasters could help to consolidate the streaming ad market for advertisers if ad-supported streaming audiences coalesce around them.
- But this consolidation risks recreating traditional TV’s seller’s market within streaming — unless ad buyers are able to successfully broaden the definition of TV.
With Netflix and Disney+ planning to add ad-supported tiers, the ad-supported streaming market is entering its broadcast era. The rounding out of major ad-supported streamers should help to shore up the relative lack of supply in the streaming ad market for advertisers. However, ad buyers are wary of consolidation at the top recreating and reinforcing the unfavorable-to-advertisers economics of traditional TV.
Credit to Brad Stockton, svp of U.S. national video innovation at Dentsu, for coming up with the concept that, by adding ad-supported tiers, major subscription-based streamers are becoming the streaming equivalent to traditional broadcast TV networks (and for doing so even before Netflix’s announcement). It’s an analogy that other agency executives agree with and welcome.
“I love the idea of the broadcast era because that’s gonna change things dramatically. Obviously, people went to those services so that they didn’t see ads, and now there’s an option there, but we get to crack into that space too,” said Connelly Partners partner and director of media services Michelle Capasso during the Digiday Business of TV Forum on April 21.
The idea of streaming broadcasters is also a concept that broadcast TV network owners seem to be embracing.
Consider what’s happening with…