The news: Ad-supported video is the new hot thing in streaming. Several major streaming services—and even subscription-based video-on-demand (SVOD) services, which have historically opposed advertising—have either expressed interest in or already launched ad-supported channels.
More on this: All eyes are on Disney at the moment, which is preparing to launch a cheaper, ad-supported tier later this year that it hopes will help it reach 230 million to 260 million subscribers by 2024, per The Verge. But it’s far from the only streamer eyeing ad-supported video-on-demand (AVOD).
The ad-supported model is not new: Hulu has proven its potential with long-standing ad-supported viewing channels, and less popular services like Peacock have relied on it as well. Warner Bros. Discovery’s upcoming streaming rebrand could also feature ad-supported channels.
Why ads, why now? Offering cheaper, ad-supported subscription tiers is a win-win for streaming services in a crowded market looking to increase revenues without going overboard on raising subscription costs.
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