That’s a wrap for Black Entertainment Network’s first year as an ad-supported streaming service.
BET+, which first launched in 2019 without ads, rolled out an ad-supported video on-demand (AVOD) tier in June 2023.
It’s not quite clear what the future holds for BET+ now that Paramount, the network’s parent company, agreed to merge with Skydance Media. There’s reportedly talk of potentially selling certain assets, including BET.
In the near term, however, the next step for BET+ will be to increase its monetization, says Jason Harvey, EVP of BET Media Group and head of BET+.
Streaming services that are new to ads usually focus on building scale for at least a year before turning their attention to profits. We’ve seen this at Netflix and Disney+. BET’s aim is for its AVOD tier to generate as much revenue as its ad-free tier does.
Average revenue per ad-supported BET+ subscriber is now roughly $2 less than for its ad-free counterpart, which “is not necessarily where we want to be,” Harvey says.
Platforms like Netflix, for example, see higher ARPU for ad-supported accounts. But, to be fair, BET’s ad-supported service is only one year old. Going forward, BET is optimistic that more programmatic ad sales and wider distribution will turn its AVOD tier into a significant revenue driver for the company.
BET+ is available on Apple TV, Android TV and Samsung TV and is now negotiating distribution agreements with Roku and Amazon to boost its scale. It also wants to sell more ads programmatically, Harvey says.
I spoke with Harvey to learn more about how BET+ is working to raise ad-supported revenue while battling the AVOD competition.
AdExchanger: How does BET+ stand out from mainstream services and other streaming platforms made for Black consumers?
JASON HARVEY: We consider BET+ to be a complement to mainstream services like Netflix, Disney+ and Paramount+ because these services aren’t designed to cater to a Black audience or fans of Black programming and storytelling.
That being said, we expected our subscriber base to be predominantly African American, and were surprised to discover that’s not the case. A big swath of our audience is actually not Black.
Another differentiator for BET+ is our ad volume. Right now, our ad volume is about six minutes per hour of content, and we try to limit preroll ads to 90 seconds.
[Editor’s note: An ad load of six minutes per hour isn’t lighter than most mainstream services, although it is less than some, like Hulu. That being said, just about all streaming services are still actively experimenting with ad loads.]
What kind of data can advertisers use to target viewers on BET+?
We use anonymized first-party data to understand viewing behavior, such as what titles people watch during a free trial before they decide to buy a paid membership. BET+ also keeps track of which content is most likely to boost subscriber retention and drive conversions, both of which help increase customer lifetime value.
We’ve also used some third-party data to get a better understanding of certain demographics and their interests. For example, an advertiser could choose to reach, say, viewers between ages 18 and 35 in a particular income bracket.
How do advertisers actually buy BET+ inventory?
We don’t sell inventory based on specific titles, but we do sell inventory packages with programming we think would interest a particular advertiser. BET+ sells a lot of inventory programmatically, including through FreeWheel.
What do you consider the pros and cons of programmatic for BET+?
The pros of programmatic are reach and scale. But one of the biggest limitations is that it’s less suitable for more custom ad buys beyond classic preroll and midroll ads.
Once we close distribution deals with Amazon and Roku, we’ll lean even more heavily into programmatic to reach new demand.
What other types of ad units is BET+ experimenting with?
We’re working on pause ads as well as other ad units that are clickable and, in turn, more attributable. It’s still early days, though.
This interview has been lightly edited and condensed.
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