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Issue link: https://digital.macdirectory.com/i/1481697
Video is second among older viewers. Disney and Netflix are both developing AVOD and FAST options and pricing tiers which will be introduced late this year to supplement their user bases and supplement their bottom lines with ad sales. “People are comfortable with ads as long as they’re relevant and limited,” McLennan noted, “by properly using subscribers’ data they can help advertisers ensure their ads have the right balance of meaningful ads without being abrasive or overly intrusive.” “In addition,” he continued, “it will enable them to get a solid foothold in the $65B plus annual TV ad spending that is slowly moving to streaming and positive for the overall television industry.” Ad industry executives are very interested in learning more about the marketing opportunities – and cost – for the two leading streaming services. McLennan said the two will probably tip-toe into their ad-supported activities with perhaps four minutes of commercials per hour, varying pod lengths and different ad schedules/ads for episodic content and feature films. “They will probably start with 15-30 second spots and then evolve their program as they learn how people come online and use the services,” he speculated. “Ad pads and options – pre/post roll – will undoubted increase,” he added, “but we don’t see them ever getting to the unbearable 20-minute ad blocks in an hour people experience with pay TV." “Consumers won’t tolerate it,” he emphasized, “and it’s too easy to move on or cancel a service that gets too greedy and pick up a more viewer-friendly service such as Pluto, Paramount, Tubi, Freevee, Peacock, Roku.” We know you probably wonder where WBD – Warner Bros Discovery - fits into the mix because they are one of the Big Three – Netflix, Disney, HBO Max/Discovery +…right? Yes … but! A lot of the time, they just can’t get out of their own way. Now waist-deep in the merger, Zaslav has stated that Warner Bros. theatrical exhibition has become a focal point, even as they pulled Batgirl and other films from theater calendars as part of a cost-cutting move and tax write-off, emphasizing that the company will focus on quality and won’t put out a film that doesn’t meet those standards. However, back when Discovery acquired Scripps Networks, he noted “We don’t do red carpet. We don’t do Hollywood stars. We pretty much don’t have actors. We have authentic talent. We focus on strong brands, passionate audiences and real-life entertainment.” But that was then … this is now. A man of decisive action not unlike one of his inspiring business leaders, Neutron Jack Welch, he has focused on slashing content spending, cutting some HBO Max programming and realigning staffs/organizations at Warner, Turner, CNN, DC Entertainment and other content silos.