Netflix to squeak past Disney+ in US advertising revenue in 2024
Netflix is set to pull ahead of Disney+ in the race for U.S. advertising dollars next year as price hikes and a password-sharing crackdown pull more viewers to its ad-supported plan, an Insider Intelligence report projected.
The streaming pioneer's ad revenue will likely jump 50.3% to about $1 billion next year, the report — exclusively shared with Reuters — showed.
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Offering CollegeCourseWebsiteMITMIT Technology Leadership and InnovationVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisit Walt Disney''s Disney+ is expected to post a 16.1% rise in revenue from commercials to about $912 million in 2024, though the service will end this year with about $100 million more in ad sales than its rival.
The prediction underscores the success of Netflix's password-sharing crackdown, which helped add nearly 9 million subscribers in the September quarter, with the ad-tier accounting for nearly a third of the sign-ups.
The company also raised prices of its commercial-free plans in October to nudge more customers to the cheaper ad-supported offering, rolled out in November last year for about $7 a month.
Netflix has been able to sell ads at a slightly higher price than rivals by leveraging the pent-up demand from advertisers who had been waiting for its ad tier for years, Insider Intelligence analyst Ross Benes said.
«Because viewers tend to spend more time per day with Netflix than with other streaming services, Netflix's ad revenues are poised to grow significantly,» Benes said, adding that «Disney is struggling more right now because they have had all these box office bombs.»
However,
