Video on demand changes business model
The Vod (video on demand) market is changing profoundly. And with it also its business model. In addition to the subscription, the platforms also need advertising revenue and so, after Netflix, also Disney + and Warner announce the inclusion of commercials.
While Netflix has changed direction also due to the decline in subscribers, Disney + instead recorded a 26% growth in revenues in the third fiscal quarter ended in July. From 8 December it will propose a new grid of subscriptions, supported by advertising.
With a market now considered “mature”, the contribution of advertising is considered essential to lower the rates of subscriptions and therefore to expand one’s user base.
According to a study by Digital TV Research, advertising will more than double in the next 5 years: Avod (advertising on video on demand) revenues on streaming series and films will increase from 33 billion dollars in 2021 to 70 billion in 2027.
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