In class, we speak often about the untapped potential that streaming services provide for advertisers. It's no wonder that streaming is the new frontier given the explosion of growth for streaming services in the size of the audience and the number of hours spent by consumers in the past 18 months. Netflix already has 200 million global subscribers, Disney+ has 95 million subscribers, and Amazon has 150 million subscribers. The next tier of providers - HBO Max, Peacock, Hulu - are all climbing to reach their 50 million subscriber mark.
One thing that these streaming services need to keep in mind is original content certainly helps to drive new subscribers as was the case for Apple TV+ and Disney+. However, only half stayed on after six months. Therefore for these providers to stay relevant and capture long-term audiences, they need to continue to release captivating content and rethink their subscription models.
Major streaming services like Disney+ and Netflix are looking beyond video, such as video games, to expand their value proposition and maintain their market dominance. This all offers exciting new opportunities for marketing and advertiser to be innovative and creative in first determining which streaming services to partner with and decide how they can advertise depending on the type of content. For example, advertisers can choose to use streaming ads on games vs. movies.
Finally, advertisers need to understand the consumer's opinions about ads on their streaming services. Many may be open to ads if they help with lowering the streaming fees since a growing number of households manage multiple streaming accounts. The potential is great for advertisers who can tap into viewers' openness to ads and their preferences.
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Resources:
https://www.cnbc.com/2021/02/18/streaming-wars-how-to-tell-whos-winning-and-whos-losing.html
https://www.emarketer.com/content/streaming-originals-spell-new-subscribers?ecid=NL1001
https://www.entrepreneur.com/article/382316
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