Variety’s Post

How YouTube became a TV powerhouse and how much ad revenue it makes YouTube dominates TV streaming, surpassing Netflix, with free content and live sports, making it indispensable for viewers and advertisers. Read mode on following blog post!

✅🖥️ Variety (7/1): “ Pay TV. SVOD. AVOD. Social video. They aren’t often grouped together, but the latest data in the new Variety report “Social Video vs. SVOD: The Race to Replace TV” suggests they can be thought of as a series of historical shifts in U.S. audience viewing behavior. First, the cable business broke broadcast TV’s stranglehold in the 1980s. Thirty years later, Netflix led a field of successor streaming services that siphoned eyeballs at equally sizable scale from linear TV. And now even though streaming is hardly done in terms of its growth relative to broadcast and cable, there are signs of a paradigm shift already in motion: a third wave of fragmentation in which social video begins to eat into the market share of major streaming services. Data keeps mounting that video consumption on the big social platforms — primarily YouTube, TikTok and Instagram — is growing strongly, with users spending more time on these platforms each year. In this report, Variety provides a data-driven probe into how this viewing may impact time spent with subscription video.” ⬇️ #streamingtv #ctv #ott #upfronts #socialmedia #tv3 #cordcutting #genz https://lnkd.in/eUbfGa_D

People are catching on to the fact that YouTube is ruling TV. The Google platform dominated streaming TV viewing for all of 2023, ahead of Netflix. It's increasingly becoming today's "must-see" TV for people, especially younger ones, with free videos uploaded by creators like MrBeast; free, ad-supported shows and movies from big Hollywood distributors like The Walt Disney Company and Warner Bros. Discovery, live sports, and Primetime Channels. Check out our breakdown of YouTube's rise and what it means for other entertainment players and advertisers in Business Insider: #youtube #tvadvertising #streamingwars https://lnkd.in/gW85Y3ji

As audiences continue to grow on streaming, Connected TV offers the opportunity for marketers to use precise user targeting, expanding well beyond the basic demo/geo options available on Linear. Adapting means prioritizing "who" we reach as much as "how many." It's a dynamic shift promising more effective engagement. #StreamingAds #ConnectedTV #AudienceTargeting #programmaticadvertising

From The Information: Big #tech companies are also looking to bring more creators into their own ad-supported streaming channels. Earlier this week, Amazon  announced a new interactive, #FAST channel on Prime Video and Amazon’s own free #streaming service Freevee. It offers the most-watched Amazon Live streams, which feature influencers reviewing products, as well as video from reality #TV and #music celebrities including Lala Kent, Kandi Burruss and Paige DeSorbo. Creators stand to make money off these channels, particularly as more advertiser spending shifts from traditional TV to streaming. GroupM, the world’s largest ad-buying firm, is seeing marketer clients gradually increase their spending with FAST services, the firm’s U.S. chief digital investment officer, Susan Schiekofer, told me earlier this week. That increased spending means growing payouts for creators who ink FAST deals. Most receive a share of revenue on #advertising sold by Pluto TV and The Roku Channel and other services, similar to YouTube’s ad revenue share. The percentage of ad revenue that channel owners receive from FAST services can vary, whereas most creators typically get a 55% cut of ad revenue generated by their YouTube channels. What makes FAST services and channels additionally compelling for creators is that they do not necessarily require new, original videos. Many, including MrBeast and Pocket.Watch, re-package videos and series that they have already put on YouTube onto their FAST channels, creating a secondary revenue stream for content that they’ve already made. There are drawbacks. Creators have to have fairly large followings and bodies of work to get these deals. And we are quickly reaching FAST saturation. GroupM’s Schiekofer said the firm gets “outreaches every week, sometimes dozens of them” about new FAST channels and services. That means a heavy and growing amount of competition and the likelihood that most FAST channels don’t have many viewers. It’s why Schiekofer and other #media and #entertainment industry executives I’ve spoken to predict that a shakeout is coming in the FAST market.

"The study also indicates that 58 percent of viewers would rather watch ads while streaming to save money, and 62 percent prefer free streaming to paid. Plus, 58 percent of viewers would rather have a free account to themselves than a paid subscription they have to share." We heard for years that TV is dead...well, not yet(at least for the next few years), now we hear that SVOD is not what Gen Z want to watch and that they prever AVOD. Defintrly free is for many better than any paid subscription, but should SVOD streaming services panic? Definitely not( at least for the new few years). In MENA region according to some research, we will have 26 milion SVOD subscribers by 2029, and this is less than 10% of the population. What will the rest do? to pay or not to pay is the question? or is it to pay a little?? https://lnkd.in/dFTnxaZa #avod #svod #mena #media

Some weekend reading for all my BrandStorytelling friends out there who are exploring new models of distribution. As someone who has had projects live on both premium streaming platforms and more “traditional” platforms like YouTube, there’s a lot of truth to this, especially if you’re trying to reach a younger audience. #brandedcontent #brandedentertainment #brandmarketing

"K entertainment, which are loved by global audiences, started out as local Korean content." In the age of streaming, local media in the U.S. are facing challenges. The proliferation of social media and streaming services has led to a sharp decline in local content consumption. In addition, younger generations are increasingly turning away from local TV and media outlet. To combat this, some U.S. local media outlets are adopting a multi-platform strategy. https://lnkd.in/gkd2RbUk

Check out this great article from AdExchanger talking about the benefits of working directly with a DSP like JamLoop. If you are an advertiser or advertising agency looking to reach the streaming TV audience, please reach out to me.