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Advertising brings in crazy amounts of money for streaming platforms

© Unsplash/Giordano Rossoni

It has now been more than a year since Netflix, Disney + and other big names in streaming launched offers with advertising. This strategy left many subscribers skeptical, especially since many users joined these services to escape television which offered too much advertising. But the platforms remain firmly attached to these new packages which generate significant revenue.

Advertising, the new Eldorado of streaming

Our colleagues from Business Insider have was able to obtain more precise information on this subject. They spoke with seven advertising agencies to find out the prices charged by these entertainment giants in the United States.

We must immediately introduce a concept widely used in this environment: CPM. This is the cost paid by an advertiser for 1000 views of their ad. We therefore learn that Netflix's CPM is between $38 and $55 for its advertising package used by 15 million users around the world. That's less than he originally charged: around $65.

For its part, Disney+ obtains a CPM between 22 and 40 dollars, while it originally charged 50 dollars for the latter. According to recent data, the number of subscribers to the ad-supported package is approaching one million.

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

Finally, we can mention Max, the Warner Bros service which will be launched in France this year. Its CPM is between $33 and $53. According to our colleagues' sources, certain prestige series like Game of Thrones are billed a little more expensive.

In any case, the arrival of these streaming giants on the advertising market sounded like a wake-up call for the big television players. It is in fact a sort of declaration of war for the latter who see their economic model heavily impacted.

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 reread our article dedicated to this subject here.

For your part, have you opted for one of the packages with advertising offered by these streaming services&nbsp ;? Do not hesitate to provide your testimony in the comments.

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Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116