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Advertisers want in on your next binge-watching session | CNBC Reports

Advertisers want in on your next binge-watching session | CNBC Reports

We used to have to wait for days to watch
the next episode of our favorite shows and then sit through ads
when it finally came on. But how we watch television has
changed in the last 10 years. A larger number of us are opting to watch multi-
episodic shows in a single sitting without any ads. This phenomenon is called,
you guessed it, binge-watching. Thanks to cable TV, DVDs
and online downloads, binge-watching has existed in
some form for a number of years. But now the pervasiveness of streaming
services such as Netflix, YouTube and Hulu have made it into a
cultural phenomenon. A survey in 2015 found that upwards of
75% of American television viewers and 85% of Chinese viewers
binge-watch television shows. And in the United States, those 24 years old
and younger, often called Generation Z, are binge-watching more
than any other generation. Ninety-one percent of Gen Z
say they binge-watch shows, compared to 86% of millennials
and 80% of Gen X. Here at the Cannes Lions festival, marketers
are carefully watching these trends in order to figure out how to
reach you, the consumer. At this marketing festival, I
met up with Pranav Yadav, a neuro-marketer who studies consumer
behavior, to learn about the culture shift. This culture of binge-watching is actually
a culmination of a lot of things. The fact that we are busier. The fact that streaming
is actually available. I remember the time when opening
a website in India meant you’d actually have to wait for the
head to load, and then the forehead, and then probably the eyes, and if you were lucky and
the connection didn’t break, you’ll get to see the face. From that time, we’ve finally moved to a point where
even in countries like India, there’s 4G access. While faster connection speeds
make streaming possible, Pranav says it’s the new streaming
ecosystem that has us hooked. Here’s how it works. First: Produce good content that not only
captures people’s attention, but also builds loyalty. Loyalty brings in revenue for the company,
which allows it to invest in more compelling and higher-quality content to
keep us glued to our screens. Take Netflix for example.The biggest streaming platform
on the planet boasts about 140 million subscribers. It premiered 139 original shows in 2018 and
accounted for over half of the estimated $19.5 billion spent on programming by
Netflix, Amazon and Hulu combined. Besides owning popular titles such as Stranger
Things and Orange is the New Black, Netflix also carries fan-favorites
such as The Office and Friends. Ad breaks are typically a major revenue stream
for traditional broadcast companies. But if our shows are uninterrupted, then how are
companies like Netflix and Hulu making money? Netflix and Amazon Prime are
actually doing a pretty good job at product placement and brand
placement within their content. If you look at the show Stranger Things, there’s a
character who ends up falling in love with Eggos. What better way in the world
to find an engaging story and to be able to reinforce your brand
attributes through long-form content? And it’s not stopping there. Netflix says it inked deals with around 75 brands
for the upcoming series of Stranger Things, including Coca-Cola, H&M
and Baskin-Robbins. Netflix’s biggest rivals are also working
on innovative ways to advertise to us without interrupting our
marathon-viewing sessions. To learn more, I met up with the
head of research at Hulu, to find out how the company has adapted its marketing
strategies to ride the binge-watching wave. We’re able to recognize when a person
is beginning a binge-viewing session. So maybe you offer an ad unit in the first
episode and say, “Look we know you’re settling in to watch a few episodes, maybe now
is the time you order your pizza, or to get your taxes done,” or whatever
it is you might need to do. And then maybe you offer the rest of the experience
commercial free or with limited interruptions. These strategic partnerships
are paying off. Standalone streaming services hit
$38.2 billion in revenue last year. That number is expected
to almost double by 2023. And there’s still room for growth. Only 5% of ad dollars go to streaming platforms,
even though 50% of the audience is there. YouTube has also become a major player
in the streaming service industry. It announced last year that its rebranded
subscription service, YouTube Premium, will offer viewers access to original content as
well as ad-free music and video streaming. Traditional broadcasters are getting into the
streaming game too, but they’ll need to act fast. For the first time this year,
adults in the United States will spend more time on their mobile
phones than on their televisions. American adults are projected to spend 3 hours
and 43 minutes on their phones each day, compared to an average of 3 hours
and 35 minutes watching TV. Media companies like Disney and
British broadcasters BBC and ITV have already announced plans
for new streaming platforms. Most recently, NBC stated it will be pulling what’s
widely considered Netflix’s most popular title, The Office, and putting it on its
own streaming platform in 2021. Traditional broadcast is in huge danger and
if they actually do not get their act together, they will be eaten alive. As more and more streaming players get
into the game, the question becomes, how much we’re willing to stretch our wallets
and attention spans to include new services. And advertisers will have to work even harder
to get between us and that next episode. Thank you so much
for watching my video! Let me know how many hours you’ve
been binge-watching, I won’t judge. And don’t forget to
subscribe to our channel.

41 thoughts on “Advertisers want in on your next binge-watching session | CNBC Reports

  1. Are you kidding? How are streaming services earning money? By charging people a subscription fee, duh!

  2. Why is it a big deal for a country like India to have 4G access? The way I remember, India houses one of the largest telecom companies in the world

  3. Please know current status of India . what do you mean by even India????
    Not really now.. . This is the modern India. India has more online users than US and this graph is increasing exponentially.(it has very high poupulation compared to US but I want to tell that like T series going ahead of PewDiePie being most subscribe channel in YouTube, India will going to make huge impacts in internet world) Well we lack in internet and techs than developed countries like US but we don't lack in brain!! Most of the CEO of biggest companies are Indians including Google, Microsoft, Adobe, Nokia and so on.

    P.S. I salute to our Prime Minister Narendra Modi 🙌

  4. This idiot hails from India and says "even in India"!!! 4G has been in India since the beginning it is just that the cost per GB was very high until Jio came. Classic idiotic brain drain

  5. More number of streaming platforms is not better for consumers. No one will buy all of these services and there will be a resurrection of piracy. People will buy a max of two subscriptions and the rest unavailable shows they'll just pirate it.

  6. Netflix is the only service ill actually subscribe to. I have amazon prime just because i buy a ton of stuff from amazon. Theres way too many streaming services out there and im not going to subscribe to 5 different services due to exclusive programming. The industry is basically saying please pirate more movies and shows…..

  7. I've subscribed to 3 streaming services and watched less content on the streaming services than I used to do when I had only TV to watch.

  8. I would LOVE Netflix to offer an ad-supported plan that was cheaper than the normal HD subscription. I like Hulu for allowing me to save money that way.

  9. Itll probably honestly be cheaper to pay for the most expensive VPN service and pirate what you want to watch than sign up for all of these services

  10. What does this idiot mean by ' even countries like India' ? 😑

    People around the world are focused on India, which is one of the largest consumer markets after China. Movies, series, products and services eye Indian market as one of the most important. And idiot Indian is like countries like India. 'People like you' I tell you !!!

  11. 4:46 — BBC and ITV already launched a joint streaming platform about a couple of years ago. It's called Britbox.

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