Behind the Numbers: TV and Streaming Trends for 2025—Netflix's Live Sports Push & Small/Mid-Sized Brands Spending More on CTV Ads | Jan 17, 2025
Jan 17, 2025
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In this engaging discussion, Ross Benes, a Senior Analyst at eMarketer, and Paul Verna, Vice President at eMarketer, dive into the future of TV and streaming. They analyze Netflix's bold move into live sports and what that means for advertisers. Small and mid-sized brands are increasingly turning to CTV ads, reshaping spending strategies. The duo also explores the evolving role of self-serve advertising and AI content, setting the stage for how viewer behavior might shift in this dynamic landscape.
Netflix is shifting its strategy by investing in live sports broadcasting to broaden its audience and attract subscribers.
Small and mid-sized brands are increasingly spending on CTV ads due to the rise of self-serve ad options on streaming platforms.
Deep dives
Growth of Small Advertisers in Streaming
The share of streaming ad revenues from small and mid-sized companies is expected to expand significantly. Streaming platforms are increasingly offering self-serve ad options, which makes it easier for smaller advertisers to buy inventory. This shift is essential for growth, as relying solely on big brands limits potential revenue. The strategy reflects practices seen in digital services like YouTube and Facebook, indicating a trend toward 'YouTube-ification' of streaming ad spend.
Netflix's Sports Licensing Strategy
Netflix is transforming its approach to sports broadcasting, marking a significant shift from its previous stance of avoiding sports content. Recent live events, including high-profile boxing matches and Christmas Day NFL broadcasts, underscore this new strategy, aiming to attract larger audiences. The company is also securing exclusive rights for major sports events, such as the FIFA Women's World Cups, positioning itself as a key player in sports media. This approach contrasts with traditional broadcasters and could potentially redefine how sports are consumed on streaming platforms.
Global Expansion and Niche Markets
Tech companies like Netflix are uniquely positioned to capitalize on global interest in sports, especially in regions where traditional broadcasters may not have a strong presence. As streaming becomes more entrenched, lesser-known sports and international leagues present new opportunities for exposure and audience growth. The discussions highlight a potential pivot towards sports that may not yet be popular in the U.S., potentially boosting interest in markets across South America and Asia. This shift signifies a broader strategy to enhance Netflix's global subscriber base through diverse content offerings.
On today's podcast episode, we discuss what the verdict is on Netflix's sports streaming experimentation and how small and mid-sized advertisers are spending more on CTV ads. Tune in to the conversation with Senior Director of Podcasts and host Marcus Johnson, Senior Analyst Ross Benes and Vice President Paul Verna. Listen everywhere and watch on YouTube and Spotify.