Jordan Bevan
In a significant shift in the streaming landscape, Netflix is projected to overtake Disney+ in advertising revenues next year, accumulating a substantial $1.03 billion compared to Disney’s $911.9 million, according to Insider Intelligence’s forecast. This anticipated change raises intriguing questions about the evolving dynamics of the streaming industry, with both platforms vying for viewer attention and advertising dollars.
Despite the revenue gap, Disney+ is expected to account for merely 8 minutes of daily viewing time in 2024, while Netflix dominates with an estimated 32 minutes per day, based on the forecasts.
While Netflix appears to be pulling ahead in ad revenue, the discrepancy in viewing time suggests a nuanced narrative. Disney+ may lag in minutes watched, but it possesses a strategic advantage that differentiates it from Netflix.
One distinguishing factor favoring Disney+ is its existing ad infrastructure. Unlike Netflix, which has to build its ad platform from the ground up, Disney+ can leverage the well-established ad technology that powers its linear TV business and Hulu. This pre-existing foundation positions Disney+ to streamline its ad integration, potentially accelerating its growth in ad revenues.
As the streaming landscape continues to evolve, these contrasting strategies between Netflix and Disney+ underscore the complexity of the competition for viewer engagement and advertising budgets.
According to data from MediaRadar, six leading streaming platforms generated $1.07 billion in ad revenue from January to October 2023, marking an 8% YoY decline compared to the $1.2 billion generated during the same period in 2022.
According to a recent report, the ad cost per thousand (CPM) gap between Netflix and Hulu has experienced notable shifts in the past year, converging to create an anticipated difference of around $21.73. In the third quarter of 2023, Netflix reached 247.15 million subscribers, while Disney+ accumulated 150.2 million subscribers.
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