TIME SPENT STREAMING SLOWS
As premium streaming platforms mature, the average time spent viewing them has started to flatten, with only slight overall growth projected through 2026. The lone exception is Peacock, where a 15% increase is expected, based primarily on viewership of the upcoming Summer Olympics. YouTube’s reign as the streaming leader continues, as their average viewership has ticked up by 2.6% to 51 minutes per day. The only other platform where even a slightly significant increase is projected is Amazon Prime, which is expected to grow by 1.6% to 2.3% per year between 2024 and 2026. (MediaPost: July 9, 2024)
STREAMING BUNDLES: GAINING—AND KEEPING—SUBSCRIBERS
As streaming platforms continue to focus on subscriber growth, they’re also placing increased attention on subscriber retention. Over 40% of U.S. streaming subscribers “regularly subscribe, cancel, and resubscribe,” and streamers are turning to bundled packages to curtail that trend. A study from Ampere Analysis (which is where we got that churn number) has found that Disney+ subscribers who left the platform and then came back are almost 60% more likely to stay for at least 12 months if they subscribe to the Disney+/Hulu/ESPN+ package. And there’s room for growth in the inter-company packages as well, as the accompanying charts show. Often, the bundled services are the ad-supported versions… which means more opportunity for advertisers and more revenue for the providers. (Hollywood Reporter: July 9, 2024)
ARE CONSUMERS OPEN TO NEW BRANDS? DEPENDS ON THE PRODUCT
A recent survey of CMOs shows that B2C product companies plan to spend about 10% more on advertising for new products this year, with the CPG category increasing budgets the most. But are consumers willing to try new things? If you’re talking about food, probably. In another report, nearly 60% of respondents say that they try new food products at least four times a year. On the other hand, fewer (44%) look for new Household items, and 31% don’t even consider them. And it makes sense, given changes in fashion, that only 19% buy the same clothing product every time. But we won’t spoil all the surprises—both reports offer plenty of insights and are worth a read. (CMO Survey: Spring 2024; Consumer Survey: Q2 2024)
A SLOW LINEAR UPFRONT… BUT WHAT COMES NEXT?
That the linear Upfront marketplace has moved slowly this year should surprise nobody; Broadcast and Cable ratings are down, and so are streaming CPMs. But what happens next is far less certain. Ordinarily, a slow Upfront would signal a strong Scatter market, but that’s not necessarily the case for 2024-25. Scatter spending is projected to increase by less than one percent—nearly flat to last year in an industry where mid-single-digit increases are the norm. The big question mark? Live sports, which are about the only predictably strong performer on TV. If the networks successfully leverage the demand for ads within and around those properties, revenue could exceed projections. (MediaPost: July 2, 2024)
THIS WEEK IN VIDEO HISTORY
July 10, 1949 – The first practical rectangular television was presented. The picture tube measured 12” by 16” and could be yours for the low price of $12. That’s $634 in 2024 dollars, which is in line with a mid-sized TV today, but a little pricy for one measuring a foot by a foot-and-a-quarter.
