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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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According to U.S. market research published by Parks Associates last summer, Amazon media player products narrowly out-shipped Apple TV (for a 22 vs 20 percent share of the market) in 2015, but that a...

Parks Associates: 29% of Consumers Get Most of their News from Social Media Platforms like Facebook and Twitter

PRESS RELEASE: New consumer research from Parks Associates reveals 29% of U.S. broadband households get most of their news from social media platforms like Facebook and Twitter. According to 360 View:...

Streaming Wars Accelerate: What’s Working and Why

Parks Associates, a Dallas-area research outfit, is tracking more than 200 OTT services and there are plenty more beyond those, points out analyst Hunter Sappington. “With so many services it is hard...

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