Streaming services are exploring the possibility of incorporating more commercials into their content. While platforms like Netflix and HBO/Max have long maintained a commercial-free zone, the streaming giants have started to seek new ways to increase revenue as their viewer base and production costs have skyrocketed. Audiences have largely fled the world of broadcast television to enjoy the ad-free entertainment of major streamers, but subscribers may start to see advertisements pop up in places they never expected.

According to Variety, streaming networks are more open than ever to selling their ad space to “media buyers,” which purchase ad space on behalf of major companies, brands, or agencies. As content costs rise, especially for live sports and original programming, streaming giants and networks are seeking new and creative ways to increase revenue.

What More Ads On Streaming Platforms Means

Major Streamers Will No Longer Offer Commerical-Free Zones

Donna Speciale, a top advertising executive, once tried to get TV networks to sell entire ad breaks to media buyers who would arrange commercials in a way that kept viewers engaged. They refused, wanting to control what appeared on their coveted channels. “Times have changed,” she said. “Everybody now is looking at trying to turn the model upside down. And I think everything is on the table.”

As traditional TV networks have long relied on advertising revenue, streaming services initially attracted subscribers with an ad-free experience. However, the escalating costs of production and acquisition, especially for live sports, are prompting platforms to reconsider their models. Netflix recently made a bid for Sunday afternoon NFL games, but securing the rights to such high-demand content requires significant financial investment, which advertising can help recoup.

For viewers, this shift may lead to the availability of more premium content, albeit with the inclusion of advertisements even for “ad-free” subscription tiers. At the same time, advertisers are shifting away from the traditional “spray and pray” method (placing ads everywhere) to targeting audiences with specific content. Streaming allows for more personalized advertising, as seen with Paramount+’s Yellowstone-themed ad that popped up within the commercial breaks of the hit Western series.

Our Take On More Ads In Streaming

More Ads, More Money, And More Content

Now that streaming has become the dominant way people watch content, networks and platforms alike see no reason to leave ad dollars on the table. The more ads streaming platforms show, the more money they make, allowing them to produce more content. There are over 200 streaming services available worldwide, with each one attempting to differentiate itself between premium and original entertainment. The costs will ultimately be felt by the viewers themselves, whether it’s rising subscription costs or the inescapable proliferation of ads.

Source: Variety