by Wayne Friedman
Source: www.mediapost.com, December 2023
New December estimates project that Disney+ ad-supported streaming option will take in $786.6 million in advertising revenue for all of 2023 — slightly higher than the $684.6 million projection for Netflix’s advertising tier, according to Insider Intelligence/eMarketer.
But Netflix is projected to top Disney+ in the coming years — reaching $1.03 billion (vs. $911.9 million for Disney+) in 2024 and $1.14 billion (vs. $1.10 billion for Disney) in 2025.
Disney+ and Netflix are hitting these efforts with the highest advertising cost-per-thousand viewers (CPMs) of all major U.S. streaming platforms, rising to $46.64 and $47.05 in the fourth quarter, respectively.
By comparison, the estimates are $40.04 for Peacock and $25.32 for Hulu. These estimates come from all in-stream ads before, during and after content is delivered. Hulu’s data excludes the virtual pay TV provider, Hulu+Live TV.
For viewership, Disney+ is projected to grow 18.8 million this year — 17% of its overall viewers — while Netflix is projected to hit 7.7 million — 4.5% of all its viewers.
Next year, Disney+ will climb to 27.2 million ad-option viewer, with Netflix rising to 13.0 million.
Insider Intelligence/eMarketer analysis says: “Subscription fee increases and password-sharing restrictions will push more Netflix viewers toward advertising.. Because viewers tend to spend more time per day with Netflix than with other streaming services, Netflix’s ad revenues are poised to grow significantly as more viewers come aboard.”
