#ad-supported-streaming

#ad-supported-streaming

For years, top Netflix executives insisted that the platform would always remain free of ads. But in the fast-moving world of tech and entertainment, being able to change company policies as per requirements is a necessity. So while many viewed Netflix's decision to introduce an ad-supported tier with skepticism, the decision turned out to be a savvy business move. During Netflix's earnings conference call yesterday, the company said that ad revenue on the platform during the most recent quarter set a new record.

Fox's flagship streaming service Fox One doesn't only symbolize the state of the TV and streaming market, by making traditional TV's most premium programming, NFL football, fully available without a pay-TV subscription. It also represents the state of streaming technology. Yes, I'm referring to AI, which Fox is using to power the streaming service's search engine and customer support. But I'm also talking about how Fox is unifying its streaming ad tech stack around a proprietary ad server.

Such alliances may help as Madison Avenue grapples with a glut of broadband-TV inventory on the market, much of the supply growing due to the entrance of both Amazon and Netflix into ad-supported streaming. This partnership will deal primarily with so-called "programmatic" advertising, or digital inventory that gets bought based on algorithms that define qualities of the specific consumers being sought by a marketer.

Before the streaming boom, the absence of commercials was a main selling point of services like Netflix. But as companies increasingly focus on expensive original content, subscription prices have risen. Some have advertising on their cheaper plans - Hulu, Prime Video and Peacock, among others -pushing the average monthly bill to $61 a month for American households using four streaming services, up from $48 compared to 2023, according to industry consulting firm Deloitte.