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Ad costs are narrowing on major streaming platforms

For more insights and key statistics on the biggest trends in today’s most disruptive industries, subscribe to our Chart of the Day newsletter.

Key stat: The gap in ad cost per thousand (CPM) between Netflix’s high and Hulu’s low decreased over the last year, resulting in a projected difference of $21.73, according to our forecast.

Beyond the chart:

  • Netflix’s initial CPMs were unrealistically high, noted analyst Paul Verna in our “Streaming Service CPMs 2023” report. Netflix launched with wish-list pricing, then backtracked to appease buyers.
  • We project Netflix’s US ad revenues will hit $1.07 billion next year, and Disney+’s will be around the same at $1.01 billion.
  • Price hikes and password crackdowns have pushed subscribers toward cheaper, ad-supported tiers.

Use this chart:

  • Compare ad costs across major streaming platforms.
  • Understand the last year of streaming ad trends.

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