Ben Keen’s Post

https://lnkd.in/et4Tm-Wa After nearly 5 years in the red, Disney’s streaming business is profitable — not too much of a surprise considering the addition of ad-supported tiers and the strength of their combined content offerings from Disney+, Hulu and ESPN+. With more price hikes on the horizon though, it’ll be interesting to see if the increase in revenue from those higher subscription costs will be enough to offset any potential loss in subscribers due to those higher prices. TransUnion research shows that cost is the number one reason why Americans cancel streaming services. 

📊The rise of ad-supported streaming is shaking up the media landscape. With Netflix’s ad tier now reaching 5M active users and Peacock boasting 84% of its users on ad-supported plans, brands have more ways than ever to connect with engaged audiences. 📺 As platforms like Disney+ also expand their ad offerings, as they expect 40% of their North American subscribers to join by 2025, the opportunity to stay top-of-mind in the streaming space is huge. At LocalFactor, we help you cut through the noise with tailored CTV strategies that maximize your impact across these growing platforms. Let’s make your brand binge-worthy.

Streaming content has revolutionized the way we consume media. However, as more and more streaming platforms emerge, we seem to have recreated cable with extra steps. According to Engadget, a Disney, Hulu, and Max streaming bundle will soon be available in the US. Are these bundles helping or hindering our viewing experience? What do you think? #streaming #mediatrends

Big (overdue) development in the streaming media world with Disney Streaming and Warner Bros. Discovery... Customers will always want more than one streaming service... Everyone wants choice... So partnerships like this, to promote and upsell each others services, is an important step. These partnerships allow streaming brands to own the customer and all that customers viewing. It grows customer engagement and retention, and opens up crucial new revenue opportunities. Demand for choice will result in many more of these partnerships... With all the top subscription services pre-connected, using a standard like the Bango Digital Vending Machine, is the only way to competitively scale these partnerships quickly and cost effectively. #streamingmedia #subscriptions #SVOD #AVOD https://lnkd.in/eCawc24r

Warner Bros. Discovery is increasing the prices of its Max streaming service ad-free options by $1 per month and $10 to $20 per year, just ahead of the much-anticipated season two debut of "House of the Dragon." This decision follows a broader industry trend where streaming services are raising prices to sustain content investment and improve user experience. Max's new pricing strategy aims to balance the high costs of premium content and retain subscribers in a competitive market. The recent discounted bundle with Disney+ and Hulu is a strategic move to offer more value and reduce subscriber churn, which has been a significant challenge in the streaming business. With similar price increases from other major players like NBCUniversal's Peacock and Netflix, it's clear the streaming industry is adapting to rising content production costs and the need for continuous innovation. Do you think these price hikes will affect your streaming choices? 🤔 See below for a full price chart of leading subscription video streaming services, updated with new Max pricing. 👇 Warner Bros. Discovery, Netflix, Hulu, HBO Max, Prime Video & Amazon MGM Studios, The Walt Disney Company, Peacock, Paramount+, ESPN, Apple, Starz, AMC Networks #StreamingWars #MediaIndustry #WarnerBrosDiscovery #DigitalTransformation #ContentCreation #StreamingMedia

Subscription OTT ad-supported viewer penetration rates are led by Amazon Prime (80% of total viewers), Peacock (77.7%), and Paramount+ (73.2%). Despite the only slightly higher cost for ad free options on most streaming services, the majority of average viewers still choose to stay with ad-supported versions. The dominance of ad-supported subscription OTT platforms like Amazon Prime, Peacock, and Paramount+ highlights the continued preference for cost-effective streaming options and the central role of advertising revenue in sustaining streaming services amidst industry competition.

📺 Streaming TV is finally profitable in 2024 Disney recently joined Warner Bros Discovery, Paramount+, and Netflix in the ‘finally profitable’ club. ...but you may recognize the "familiar" business model that brought them to this point It came straight from the playbook that made traditional TV profitable over the last 50 years. "New" Media’s new-found streaming TV profits come from a simple traditional TV model - increased subscription prices, consolidation bundling, reduced originals, and reintroduced ads ⬆️ Increased subscription prices Say goodbye to streaming subscriptions under $10. That day has passed. 🎬 Decreased originals, more licensing Streaming TV has turned to sports licensing as traditional TV bleeds dollars and long-term league contracts come up for renewal. 💲 Reintroduction of ads Haters said it would never happen, yet advertising has made a triumphant return to TV & are loving it 📦 Industry consolidation and bundling This new power to simultaneously increase subscribers and prices came after a very public wave of consolidation in the media industry. The times when we had endless entertainment options at super low prices are gone 🥹 Welcome to the new normal: yesterday's TV packages in digital form. #TVindustry #StreamingTV #MediaTrends #insightsfromdubai #commercialleadership #productleader

Video streaming in the US market is at a saturation point, with 96% or 124 million households tuned in, as per Kantar’s latest Entertainment on Demand data. The industry is only growing by 1% quarter-on-quarter. US households now subscribe to an average of four paid streaming services, while ad-supported video services are the key drivers of growth. AVoD and FAST have both expanded their user base by 3% in the quarter. Conversely, SVoD witnessed a decline of 0.6%. Sports content is propelling the streaming sector forward, with ESPN+ and DAZN emerging as the fastest-growing services. Prime Video, Samsung TV Plus, and ESPN+ stand out for registering significant growth in subscriber numbers during the quarter. Interestingly, Netflix's ad-supported tier saw a 2% increase in subscribers, while its ad-free offering experienced a 2% decline quarter-on-quarter. Stay updated with the latest trends in video streaming as the market continues to evolve and adapt to changing consumer preferences and behaviors. What video streaming service are you cutting or adding before the end of this year? #VideoStreaming #EntertainmentIndustry #StreamingServices #USMarket #KantarData

During the latest quarter, the company hit 71 million Paramount+ streaming subscribers worldwide, up from 67.5 million Paramount+ customers at the end of its 4th quarter, and 3.7 million customers added during the last 3 months. And the studio shrunk its streaming loss to $286 million for the 1st quarter, an improvement over a $511 million loss in Q1 2023. Direct-to-consumer revenue rose 24% to $1.87 billion, as advertising and subscription revenues were both up, driven by growth from Pluto TV and Paramount+.

Disney's Streaming Business 'Takes Step' Towards Becoming Profitable  Disney Plus and Hulu reported profits for the first time on Tuesday. In the accounts report that Disney released yesterday, the company revealed that both streaming services made a profit of 47 million dollars [43 million euros] in the last quarter - a big turnaround from the figures for the same period last year, which showed losses of 587 million dollars. However, not all of the brand's segments generated profits. ESPN Plus, for example, lost 65 million. Given these results, the entertainment company says it expects its streaming business to become profitable in the fourth quarter of this year. “Our results were driven in large part by our experiences, segments and our streaming business, which reached an important milestone with the entertainment portion of the streaming business,” said Disney CEO Bob Iger, telling The Verge that he expects “streaming to be a growth engine for the company in the future.” https://ift.tt/8KMYOoZ