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Prediction: Ads Could Make Disney and Netflix Investors a Ton of Money

Fresh data from Parks Associates, however, suggests ad-supported streaming platforms are more palatable -- and probably going to be more profitable -- than most people might think. As it turns out, a bunch of digital video viewers are already clicking on a good number of the TV ads they're seeing.

Consumer-technology market research outfit Parks Associates reports that 23% of ad-supported streaming video watchers "often" click on a video ad they see injected into their programming, with the same proportion indicating they actually buy goods and services being promoted within those advertisements. These figures jibe with a similar report published by TiVo last month, indicating roughly 22% of consumers engaged with a digital video ad during the second quarter of this year, up from roughly 21% in the same quarter a year earlier.

In light of Parks Associates' data on the growing acceptance of -- and clicks on -- streaming ads, the company may well be underestimating the potential of this endeavor. Ditto for its shareholders, as well as Walt Disney shareholders' expectations of ad-supported Disney+.
 

From the article, "Prediction: Ads Could Make Disney and Netflix Investors a Ton of Money" by James Brumley. 

Previously In The News

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The name YouTube alone carries weight as a signifier of people’s viewing habits migrating online. And for networks taking part in YouTube TV’s launch, that could make coming aboard the service seem li...

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It’s perhaps the most affordable living room OTT solution on the market. But as the Parks Associates graphic released in late May shows, Chromecast has been steadily losing market share to Roku, Amazo...

OTT Subscription Churn Rate Steady at 18%: Parks

About 18% of U.S. broadband households canceled a over-the-top video service, a rate that has held steady over the past three years, according to research from Parks Associates. OTT video subscript...

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