Media giants including Netflix, Disney, NBCUniversal and Warner Bros. Discovery will try to charm advertisers during their annual Upfronts events this week.
CEO David Zaslav said during the company's earnings call last week. "I said a while back that this is a generational disruption." There was a general improvement in traditional TV ad revenue last quarter, down 8% as opposed to nearly 16% in the same quarter last year, according to a note from Macquarie senior media tech analyst Tim Nollen. Streaming advertising was up 22% across media companies, and now makes up 18% of total advertising.
The company has leaned on its cheaper, ad-supported tier — at $6.99 per month in the U.S. — to coax price-conscious subscribers to pay monthly subscription fees. As of January, a little more than a year after its launch, Netflix's ad-supported tier hadits advertising tier earlier this year.
Warner Bros. Discovery and Disney announced last week they would offer their streaming services — Max, Disney+ and Hulu — together, marking theThe two companies, along with Fox, are also working on a sports streaming joint venture. It remains to be seen what other companies join the fray in bundling.Sports remain the glue of the TV bundle, still beckoning the largest audiences. And in the background of conversations during Upfronts week is the future of the NBA rights.
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