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Ad-Supported Streaming: A Closer Look

CTV

In the past decade, streaming TV has revolutionized the way we consume entertainment. From Netflix to Hulu to Disney+, streaming services have become a staple in our daily lives. However, as the streaming market becomes increasingly saturated, companies are looking for new ways to monetize their content. One solution that has gained traction in recent years is ad-supported streaming.

What Is Ad-Supported Streaming?

But what exactly is ad-supported streaming? Essentially, it is a streaming service that is financed through advertising rather than subscription fees. This means that users can access the content for free, but they will have to watch ads in order to do so.

Ad-supported streaming is not a new concept. Traditional television has been using this model for decades. However, the rise of streaming has made it possible for ad-supported streaming to reach new heights. With streaming, the audience is more captive and engaged, making it an ideal platform for advertising.

The Benefits of Ad-Supported Streaming

One of the main benefits of ad-supported streaming is that it is accessible to a wider audience. Subscription-based streaming services can be expensive, especially for those on a budget. Ad-supported streaming, on the other hand, allows users to access content for free, which can be especially appealing to those who may not be able to afford a subscription.

Another benefit of ad-supported streaming is that it allows for greater flexibility in terms of content. Subscription-based streaming services often have to be selective about the content they offer in order to maintain their subscriber base. Ad-supported streaming, on the other hand, does not have this constraint and can offer a wider range of content.

Ad-supported streaming is a viable option for both content creators and advertisers. For content creators, it provides a new revenue stream and allows for greater flexibility in terms of content. For advertisers, it provides access to a captive and engaged audience.

Ad-Supported Streaming: The Benefits

Accessibility: Ad-supported streaming allows users to access content for free, which can be especially appealing to those who may not be able to afford a subscription.

Flexibility: Ad-supported streaming does not have the same constraints as subscription-based streaming and can offer a wider range of content.

Revenue: Ad-supported streaming provides a new revenue stream for content creators.

Ad-Supported Streaming: Top Services

In recent years, ad-supported streaming services have become increasingly popular as a way for users to access content for free. These services are financed through advertising rather than subscription fees, which means users can watch their favorite shows and movies without having to pay a monthly fee. However, with so many ad-supported streaming services now available, it can be difficult to know which ones are worth checking out. In this blog post, we'll take a closer look at some of the most popular ad-supported streaming services, publishers, and platforms.

Netflix

Netflix is a subscription video on-demand (SVOD) streaming service with an advertising video on demand (AVOD) subscription tier, both offering a wide range of on-demand video content. Netflix has historically been an ad-free platform. In 2022, however, the streaming giant made the decision to launch an ad-supported pricing package. With Netflix’s ad-supported tier, advertisers can run 15 and 30-second videos before and during programs. Netflix has been credited with popularizing the concept of streaming and changing the way we consume entertainment.

Hulu

Hulu is an American streaming TV service majority-owned by the Walt Disney Company. It offers a massive range of streaming content, from hit TV shows to local news and more. With Hulu’s basic on-demand package, viewers have access to the service’s streaming library — including popular TV series, movies and Hulu Originals. Hulu with Live TV adds to this, offering more than 85 top channels, such as live sports, local news, entertainment favorites and other popular linear channels. Hulu generates revenue via their advertising video on-demand (AVOD) and subscription video on-demand (SVOD) video monetization model. The service offers several different advertising reach options, namely national, local and advanced TV.

Amazon Prime Video

Amazon Prime Video is included as part of an Amazon Prime subscription. If you are not an Amazon Prime member, you can also purchase Amazon Prime Video as a standalone service. Amazon Prime Video offers a wide range of ad-supported and commercial-free options, making it a great platform for both advertisers and viewers. Advertisers can choose from a variety of ad formats, including pre-roll, mid-roll, and post-roll ads, as well as display ads and product placement options. Amazon owns Freevee, an ad-supported channel with TV shows and films.

Disney+

Disney+ is a streaming service from The Walt Disney Company that offers a wide variety of content, including movies, TV shows, and original content from Disney, Pixar, Marvel, Star Wars, and National Geographic. It offers a subscription-based model, where users pay a monthly fee for access to the content. It offers a wide variety of popular shows and movies, including its own original content. The service was launched in 2019 and has become one of the most popular streaming services worldwide, especially among families. In December, 2022, Disney+ launched an ad-supported tier in the U.S.

HBO Max

HBO Max is owned and operated by Warner Bros. Discovery. It offers a wide variety of content, including original programming, movies, and television shows from the HBO library as well as content from WBD brands such as Warner Bros., DC, and CNN. In addition to its extensive on-demand library, HBO Max also offers live programming and a selection of classic films. HBO Max offers advertisers a range of innovative ad formats and targeting capabilities. Whether through traditional commercial spots, sponsored content, or product placement, brands can create a deeper connection with viewers and drive more effective results.

Peacock

Peacock is an ad-supported streaming service from NBCUniversal that offers a mix of live and on-demand content. This platform offers popular shows from networks such as NBC, Bravo, E!, Univision, USA, and Syfy, as well as original content. Peacock is available in two tiers, with a free version that includes ads, and a paid version that is ad-free. Advertisers can create and activate their performance campaigns through Peacock TV’s self-serve programmatic advertising platform, Peacock Ad Manager. There are two available packages within the platform: Peacock Premier, which offers access to premium content, and Peacock AX, which offers extended reach.

Pluto TV

Pluto TV is a free ad-supported streaming service — or FAST service — that offers a mix of live and on-demand content. This platform offers a wide variety of content, including movies and TV shows from major studios such as Warner Bros. and MGM. Pluto TV also offers a variety of live channels, including news, sports, and lifestyle channels. Users can watch their favorite movies and TV shows in exchange for watching advertisements. Advertisers are able to purchase ad inventory on Pluto TV using a variety of ad-selling options, including direct media buying and curated marketplaces.

Tubi

Tubi is one of the most popular ad-supported streaming services in the market. This platform has a wide variety of content, including movies and TV shows from major studios such as MGM, Lionsgate, and Paramount. Tubi is completely free to use, and users can watch content on a variety of devices, including smartphones, tablets, and smart TVs. Tubi allows users to watch their favorite movies and TV shows in exchange for watching advertisements.

Paramount+

Paramount+ is a streaming service that offers a wide variety of content, including movies, TV shows, live sports, and original programming. It is the rebranded version of CBS All Access and was launched in March 2021 by ViacomCBS. One of the key features of Paramount+ is its extensive library of movies and TV shows from Paramount Pictures, one of the largest studios in Hollywood. Advertising on Paramount+ works in a similar way to other streaming services and traditional television platforms. The streaming service offers a mix of ad-supported and ad-free content.

Roku Channel

Roku Channel is a popular ad-supported streaming platform that is available on the Roku streaming device. This platform offers a wide variety of content, including movies and TV shows from major studios such as Warner Bros. and MGM. Roku Channel is completely free to use and can be accessed on a variety of devices. Users can watch their favorite movies and TV shows in exchange for watching advertisements.

YouTube TV

YouTube TV is a streaming service — and vMVPD — offered by YouTube that allows users to access live and on-demand television content. With YouTube TV, users can watch their favorite shows, sports, and news, as well as movies and other premium content, all without the need for a traditional cable or satellite subscription. The ad-buying and selling process on YouTube TV is a collaborative effort between the media buyer, YouTube TV's sales and creative teams, and the use of programmatic buying which allows for efficient and effective ad delivery, and measurement of campaign performance.

Crackle

Crackle is a free, ad-supported streaming service that offers a wide variety of movies and TV shows. This platform is owned by Sony and offers content from major studios such as Sony Pictures and Warner Bros. Crackle is available on a variety of devices and can be accessed in exchange for watching advertisements.

Ad-Supported Streaming: The Future of Advertising

In conclusion, ad-supported streaming services have become increasingly popular as a way for users to access content for free. These services offer a wide variety of content, including movies and TV shows from major studios, live channels, and original content. However, it's important to note that ad-supported streaming services are financed through advertising, which means users will have to watch ads in order to access the content. With so many ad-supported streaming services now available, it can be difficult to know which ones are worth checking out. It's important to consider the variety of content, the frequency of advertisements, and the availability of the service on different devices.

Find out how Simulmedia’s unique TV+® platform for TV and streaming advertising provides unified access to premium linear and CTV inventory across all networks and publishers. Request a demo or email us at advertise@simulmedia.com.