February 2, 2015
During CES, Dish announced its $20 per month, OTT subscription service that provides access to Adult Swim, Cartoon Network, CNN, Disney Channel, ESPN, Food Network, HGTV, TBS, TNT, and YouTube videos from Maker Studios. Sling TV could finally help position the enormously popular YouTube content at the same advertising value as television. Advertisers would be able to reach the younger demographic that increasingly watches less television, while multi-channel networks like Maker Studios may grow in value.
Disney owns Maker Studios and the company has a major opportunity to sell advertising packages that include both digital and television. This makes advertising online much easier because advertisers can work with their established contacts within Disney and can easily switch between digital and television if things do not go as planned.
These packages may be more expensive at first because online advertising would be similarly priced to television advertising, but eventually this deal would likely drive the prices down. TechCrunch reports that as more advertisers move to digital, television advertising will not be as scarce and the prices will drop.
This move to digital advertising is already happening. Big brands likes McDonald’s and Priceline.com are planning to shift up to 25 percent of their TV advertising budgets online. These companies are realizing that they’ve been paying more for television advertising each year, but TV consumption keeps dropping, especially among younger viewers.
These changes in the industry do not just apply to Disney. Other media companies have also bought YouTube multi-channel networks, like Fullscreen (which was acquired by AT&T).
MCNs can also benefit from the new deal because the extra audience and revenue will help them produce even better content. The Maker Channel on Dish’s Sling TV service will become an aspiration for their YouTube talent. With the growing sphere of digital advertising growing, even smaller YouTube creators will be able to become “YouTube influencers” with small- and medium-size businesses and brands.