Following a bold move by Warner Bros.,Discovery, and Walt Disney last week, Comcast has followed their lead with their announcement of a heavily subsidised subscription of Netflix, Apple TV, and Peacock. While we don’t know the exact price yet, “Stream Saver” will be "vastly reduced to anything in the market today," says Comcast CEO Brian Roberts.
So, what does this mean for Video Streaming Advertising?
The bundling of major streaming services by cable/broadband providers is bold to say the least. As more viewers shift to bundles for more options and better value for money, it concentrates a mass of audiences that advertisers need to reach.
Well, there are some benefits:
Simplified Cross-Platform Buys
Instead of having to negotiate separate ad deals across multiple streaming services, media buyers can make unified buys across an entire bundle. Consolidating their advertising spend and streamlining campaign management.
Richer Audience Data
Cable providers have been collecting deep insights into their subscribers' viewing behaviours for decades. They can leverage this data for more specific audience targeting.
However, the bundling trend may also create some challenges:
Potential Audience Overlap
If a viewer subscribes to multiple streaming bundles, there's a risk of significant audience overlap leading to inefficient ad spending.
Competitive Positioning
Ad inventory and pricing could become more competitive as bundles essentially try to recreate digital "walled gardens" controlled by a few key providers.
Traditional TV subscribers have become a minority of low numbers and an older demographic of the population. There's an ever-increasing gap between traditional pay TV viewers and non-pay TV viewers. With more companies turning to ‘bundling’ in an effort to compete with Netflix and low subscribers. Maybe in the years to come, they may all join forces, bundle all streaming platforms together, and call it Cable TV again.
