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Streaming Service Ad-Wars

02/01/24

By:

Dan O'Connor

2024 will see the beginning of streaming services implementing ads on their platforms.

The year 2024 marks a turning point in the streaming industry as major players like Amazon Prime Video and Netflix embrace the concept of ad-supported tiers, signaling the beginning of a fierce battle for viewers' attention and advertising dollars.


This shift away from pure subscription-based models comes as streaming services grapple with rising content costs and the increasing saturation of the market. By introducing ad-supported options, they hope to generate additional revenue.


Amazon Prime Video's ad tier, set to launch in early 2024, is expected to be priced significantly lower than its ad-free counterpart. Netflix, on the other hand, is still finalizing plans for its ad-supported tier, but it is widely anticipated to follow suit.


Affiliate Flash’s Take:


This ad-supported trend is not without its challenges. Viewers, accustomed to uninterrupted streaming experiences, may be hesitant to accept commercials in their favorite shows and movies. Additionally, advertisers will need to find creative ways to engage audiences without disrupting their viewing habits.


Some streaming services have seen a decline in viewership recently, like Netflix for example, who experienced their first subscriber decline in a decade in 2020 and lost 200,000 subscribers in North America alone in 2023.


These declines have been linked to rising prices, lack of quality new content, increased competition and account sharing crackdown.


As the streaming wars intensify, the battle for viewers' attention will extend to the realm of advertising. The companies that can strike the right balance between ad integration and viewing experience will likely emerge victorious in this new arena.


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