Amazon Stands to Gain $3 Billion a Year from Prime Video Ads

Amazon this week began serving advertising to Prime Video customers who did not elect to pay an additional $2.99 per month in addition to the basic annual Prime membership of $139 per year or $14.99 per month. Adding commercials is estimated to potentially bring in more than $3 billion a year for Amazon, which is expected to have 2023 revenue of around $567 billion. The surplus will come in handy to pay out $1 billion a year over 11 years for the rights to NFL’s “Thursday Night Football.” The ad-supported Prime Video service launches in the U.S., Canada, UK and Germany, with Mexico, France, Italy, Spain and Australia following later in the year. Continue reading Amazon Stands to Gain $3 Billion a Year from Prime Video Ads

Netflix Adds WWE, Touts 12.5 Percent Revenue Growth in Q4

Netflix added 13.1 million subscribers in Q4 2023, its biggest gain in a year-end quarter, and the streamer continues to try to broaden its demographic reach by investing in new content, including a new deal for live WWE wrestling matches. The expansion into live-streaming provides an opportunity to draw regular, appointment viewers, something advertisers like. “No entertainment company has ever tried to program at this scale, and for so many tastes and cultures,” Netflix wrote in a shareholder letter that says it plans to spend up to $17 billion on content in 2024. Continue reading Netflix Adds WWE, Touts 12.5 Percent Revenue Growth in Q4

FAST Platform Plex to Roll Out Movie, TV Rentals Next Month

After announcing in 2020 plans to launch a movie and TV show rental marketplace, media streaming platform Plex is finally taking the plunge. Following what has been described as “false starts,” including delays due to COVID-19, news broke at CES 2024 that the company will go public with its rental offering in February. The streaming media software maker has confirmed it will enter the TVOD (transactional video on demand) market to augment the ad-supported streaming that is its primary revenue source. Plex reportedly has “most studios” onboard, though it has yet to specify which ones. Continue reading FAST Platform Plex to Roll Out Movie, TV Rentals Next Month

Pluto Intros Limited-Time ‘NFL Super Bowl Classics’ Channel

Paramount Global’s Pluto TV free streaming television service is adding a pop-up channel for NFL fans for the weeks leading up to Super Bowl LVIII on CBS. The new programming joins an NFL channel that Pluto TV launched in 2019 to showcase game coverage with news, replays and original shows. Airing 24/7 through February 21, the “NFL Super Bowl Classics” channel will feature past Super Bowl games and specials. Viewers can find the channel on the Pluto TV app or connected TV devices in the Sports category. Game replays will stream sequentially with specials and docuseries interspersed. Continue reading Pluto Intros Limited-Time ‘NFL Super Bowl Classics’ Channel

Netflix Boosts Features After Year One of Ad-Supported Tier

Netflix is celebrating the one-year anniversary of its ad-supported tier by giving binge viewers every fourth consecutive episode ad-free. It is also making downloads available on its ad-supported plan, claiming to be the first streamer to do so in an advertising environment. While the binge perk won’t be available until 2024, downloads for both TV series and films are said to start immediately. Netflix said that in year one its bargain-priced tier with ad support has hit 15 million global monthly active users, touting its partnership with Microsoft as helping “to shape the future of advertising.” Continue reading Netflix Boosts Features After Year One of Ad-Supported Tier

AMC Offers a New Commercial Tier for Its Streaming Service

AMC Networks has begun rolling out an ad-supported version of its flagship AMC+ streaming service. Initial availability will be on AMC’s own direct-to-consumer platform and apps, with third-party platforms and channel providers added in the coming weeks. Priced at $4.99 per month, the ad-supported tier includes less than five-minutes per hour of sponsored messages and the same content that comes with the $8.99 per month ad-free plan (or $83.88 annually). Chief Commercial Officer Kim Kelleher says the new product offering is “bringing ads to the only piece of our distribution ecosystem that wasn’t already ad-supported.” Continue reading AMC Offers a New Commercial Tier for Its Streaming Service

Streaming Drives Music Revenue in the U.S. to a New Record

Recorded music revenues in the United States reached $8.4 billion for the first half of 2023, an all-time high for the period that translates to a 9.3 percent increase, according to the Recording Industry Association of America (RIAA). Streaming continued to thrive, accounting for a whopping 84 percent of the six-month revenue total, or $7 billion. Total revenue from paid subscription services grew 11 percent to $5.5 billion, nearly double the growth in the number of individual paid accounts, which rose by just over 6 percent year-over-year, to an average of 95.8 million accounts. Continue reading Streaming Drives Music Revenue in the U.S. to a New Record

Netflix Shutters Cheapest Streaming Plan Without Advertising

Netflix is marshalling resources around its ad-supported Standard plan, pulling the plug on ad-free Basic in an effort to drive more eyeballs to the service’s sponsored tier. The $9.99 per month Basic plan is no longer available “for new or rejoining members” in the U.S. and UK and was dropped in Canada last month. Existing Basic subs can continue the plan until they decide to change tiers or cancel. Standard with Ads has since its November launch accrued more than 5 million subs, according to Netflix, which says 25 percent of new sign-ups have chosen that package. Continue reading Netflix Shutters Cheapest Streaming Plan Without Advertising

SiriusXM to Close Its Stitcher Podcast App and Site in August

SiriusXM is shuttering its Stitcher podcasting app and merging podcast delivery into its flagship SiriusXM subscription offerings. As of August 29, “the Stitcher app and web listening experience will be disabled,” the company told users this week. Stitcher offered listeners the choice of free-to-listen ad-supported programs or a la carte show subscriptions. It also had the $4.95 per month ($34.99 per year) Stitcher Premium, providing a wide variety of ad-free podcasts. “Subscribers can listen to podcasts within the SiriusXM app and will see an all-new listening experience later this year,” the company said. Continue reading SiriusXM to Close Its Stitcher Podcast App and Site in August

Netflix Plans for Future Growth Include a Focus on Advertising

Netflix, which turns 26 years old this year, is looking to advertising, live events and password sharing crackdowns to power its next growth phase. The company’s 232.5 million global subscriber base makes it the world’s No. 1 paid streaming platform, a position it wants to hold, and expand, as it shifts into an era of new management under co-CEOs Ted Sarandos and Greg Peters. At a virtual presentation at Netflix’s first Upfront Wednesday, Sarandos admitted that “we have a long way to go to build scale in advertising,” but said the company intends to focus on improving that share. Continue reading Netflix Plans for Future Growth Include a Focus on Advertising

Ad-Supported Streaming Tiers Vie for Piece of the Upfront Pie

Streamers will have a major presence at the TV Upfront presentations to advertisers in New York this week. Research firm Antenna says nearly 25 percent of domestic customers of Disney+, Netflix and Max opted for reduced-price, ad-supported subscriptions in February, while more than half the customers for Hulu+ and Peacock opted for the same. Antenna CEO Jonathan Carson said that “given the choice, Americans are choosing ads,” which is good news for marketers, who were initially concerned that the shift from cable to a la carte subscription streaming would edge out advertising. Continue reading Ad-Supported Streaming Tiers Vie for Piece of the Upfront Pie

Hulu Content Is Coming to Disney+ for ‘One-App Experience’

Disney will soon be incorporating Hulu content on Disney+ in the U.S. said CEO Bob Iger, describing the move toward “a one-app experience” for investors on the company’s quarterly earnings call this week. Iger also confirmed discussions about Hulu’s future with Comcast, which holds a 33 percent stake in the Disney-owned streamer. “Where we are headed is for one experience that would have general entertainment and Disney+ content together,” Iger told investors. “How that ultimately unfolds is to some extent in the hands of Comcast.” Continue reading Hulu Content Is Coming to Disney+ for ‘One-App Experience’

AMC Networks Maps Out Its Future Ad-Supported Strategies

During a conference call with investors, AMC Networks explained the company’s plans for attracting new subscribers to its streaming services, including a new ad-supported version of AMC+, slated to launch later this year, and continuing to extend carriage deals of its FAST channels. AMC Networks — which operates AMC+, ALLBLK, Acorn TV, HIDIVE, Sundance Now and Shudder — experienced a drop in direct-to-consumer numbers during the quarter that ended March 31. Its overall 11.5 million subscriber count decreased about 300,000 since the end of 2022 (subscriber data was not revealed for each individual service). Continue reading AMC Networks Maps Out Its Future Ad-Supported Strategies

Netflix Delays Password-Sharing Fees, Cancels DVD Rentals

Netflix followed its triumphant Q4 with mixed results for Q1, the first quarter under new co-CEOs Ted Sarandos and Greg Peters. The period ending March 31 produced profit of $1.31 billion, down 18 percent year over year. Revenue was up 3.6 percent to $8.16 billion from $7.87 billion in Q1 2022. Paid sharing was launched in four countries in Q1, but the company delayed the broader rollout that was to come with a global crackdown on password piggy-backers, which was originally scheduled for Q1. The wider initiative, which includes the U.S., is now set for Q2. In addition, Netflix announced it would shutter its DVD rent-by-mail program. Continue reading Netflix Delays Password-Sharing Fees, Cancels DVD Rentals

Disney Announces Plans for Its Proprietary Ad Delivery Stack

Disney touted its capabilities this week at the company’s Tech & Data Showcase for advertisers, part of the company’s Road to the Upfront. Among the disclosures, Disney in April will begin adding some Hulu ad-targeting capabilities to Disney+, with Hulu’s “full suite of ad products and services” available throughout the entire Disney streaming portfolio by July. Since last year Hulu has been deploying a proprietary ad server Disney is said to have built from the ground up, putting it to work on the ad-supported Disney+ Basic tier launched in December. Continue reading Disney Announces Plans for Its Proprietary Ad Delivery Stack