Despite Netflix’s many protestations over the years that it would never introduce advertising on its platform, it’s not surprising that Netflix changed its tune this year.
Even the king of SVOD has to live in reality.
Consumers increasingly want the option of free ad-supported content, says Sarah Lewis, global director of CTV at ShowHeroes Group, a video platform with its roots in Europe, on this week’s episode of AdExchanger Talks.
The majority (65%) of CTV viewers say they would be willing to watch advertising in exchange for access to free content, according to research the platform conducted earlier this year across seven European markets.
But the rise of AVOD doesn’t mean subscription video on demand (SVOD) is going anywhere.
Instead, we’re moving toward a new model of sorts, and forgive the introduction of yet another acronym to describe it: HVOD (hybrid video on demand).
“I think that’s the future,” Lewis says. “It’s not necessarily an either/or, it’s adapting to the individual’s needs and offering options. If you don’t want to watch ads on Netflix, you don’t have to, you can stick with your SVOD subscription. But there will be that tier in order to appeal to people who aren’t looking to spend.”
Also in this episode: What happens to targeting and measurement on CTV if IP addresses are no longer available as an identifier, why it’s high time the industry deals with CTV’s overfrequency problem and CTV predictions for the year ahead.
For more articles featuring Sarah Lewis, click here.
