Are SVOD Services Killing Ad Revenues?

With the growth of subscription driven streaming services like Netflix and Hulu, it has become a popular trend to come up with your own subscription service. It’s become almost the prime resort for broadcasters, content owners and telcos looking to launch their streaming service. While its all good on the customer, wonder how it will affect the ad revenues with the newer services allowing ad blockers and ad-free subscriptions.

The cup has been stirred after Hulu and YouTube came up with their ad-free subscription VOD services and packages with a just higher than normal price. While the new rollouts will not have an impact on ad inventories, it does pose a threat to the future of ad revenues.

Hulu is a good example how ad based streamers can strive in the market and excel. But Hulu’s new decision has also led to an observation that customers are leaning towards an ad-free experience and nobody can deny that to them forever. There has to be a middle ground now where both models can survive and grow.

The last time we heard, FOX started testing less-disruptive engagement ads on its programming on Hulu. That could be the middle ground we are looking for. Or, maybe not.

Source : AdExchanger