Advertising brings in crazy amounts of money for streaming platforms

It’s now been more than a year since Netflix, Disney+ and other big names in streaming launched ad-supported offerings. This strategy left many subscribers skeptical, especially as many users joined these services to escape TV that offered too many ads. However, the platforms remain firmly tied to these new packages that generate significant revenue.

Advertisement, the new eldorado of streaming

Our colleagues from Business Insider could get more accurate information on this topic. They spoke to seven advertising agencies to find out the prices charged by these entertainment giants.

We must immediately introduce a concept widely used in this environment: CPM. This is the price paid by an advertiser for 1000 impressions of his ad. That’s why we learn that Netflix’s CPM is between $38 and $55 for an ad package that is used by 15 million users worldwide. That’s less than he originally charged: around $65.

Disney+ gets CPMs between $22 and $40, while it originally charged $50 for the latter. According to the latest data, the number of subscribers to the advertising package is close to one million.

Amazon Prime Video recovers between $13 and $35 per CPM, according to agencies. The streaming platform made headlines last year by enabling ads on the service by default, except for users who agree to pay additional costs.

Finally, we can mention Max, the Warner Bros. service that will launch in France this year. Its CPM is between $33 and $53. According to the sources of our colleagues, some prestigious series like Game of Thrones are charged a bit more.

Regardless, the arrival of these streaming giants into the ad market sounded like a wake-up call for the big TV players. It is actually a kind of declaration of war on the others who see their economic model heavily affected.

In France, TF1 intends to focus more on streaming. After the failure of Salto, the group decided to launch a new innovative streaming platform to try to compete with streaming platforms. You can re-read our article on this topic here.

Have you opted for any of the ad-supported packages these streaming services offer? Feel free to give your testimony in the comments.

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