Subscriptions Will Drive Around Two-Thirds of 2024 Streaming Revenue in the US.
ABSTRACT
Subscriptions will constitute roughly two-thirds of total revenue for U.S. streaming services this year.
While ad dollars are growing faster, their share of the total streaming revenue pie will only increase by about 1% annually.
Peacock and Paramount+ are leveraging live sports programming to boost ad revenues. Peacock’s exclusive NFL playoff game attracted about 3 million new subscribers, and a significant percentage retained their subscriptions afterward.
Max is also relying on live sports to grow its ad revenues, projected to reach $430 million in US CTV in 2024.
We may be in for a switch up in the world of streaming TV ads in the near future. Subscriptions are still the main moneymaker for platforms like Netflix, Hulu, and Disney+, bringing in roughly two-thirds of their total revenue. But according to new data from eMarketer, the rise of ad-supported streaming has lit a fire under the ad revenue of these platforms — making it grow faster than than of subscription revenue.
So how are streaming platforms attempting to gain an edge in this new ad-supported world? One of the most popular methods is through live sports. Peacock and Paramount+, in particular, made live sports a big part of their strategy to drive ad revenue, and are diving in headfirst to score big on ad revenue. In fact, Peacock’s exclusive NFL playoff game ended up generating about 3 million new subscribers. Max is also banking on live sports expanding its ad-supported viewership, having seen some promising results after adding live content during March Madness. Ultimately, with ad revenue growing faster than subscriptions, the battle for viewer eyeballs (and the ad dollars that come with them) is just heating up.
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