Streaming in 2024: Ad-funded, Automated and Green?

Projected to grow by EUR 19 billion in 2024 to reach EUR 164 billion, the streaming landscape remains vibrant and dynamic. With the diversification of business models and personalised options, viewers enjoy an unprecedented array of content access choices. However, the plethora of options poses a challenge to stand out, exacerbated by the emergence of FAST propositions and the priority set on profitability. On top of these operational and financial dilemmas, comes the pressing need to implement sustainability measures to cope with the global environmental crisis and reduce the carbon footprint of streaming activities.  What will be the primary focus of streaming platforms in 2024? Can the new possibilities created by AI help streamers to cope with these challenges by creating more personalised and engaging experiences? Continued strategy shift from acquisition goals to profitability and extensive revenue streams Despite shifting strategies observed recently, the streaming market persists in its growth trajectory within the media industry, as revenues should reach EUR 164 Billion in 2024, up from EUR 145 Billion in 2023. In 2024, the growth in OTT revenues will continue to be driven by North America, capturing 67% of global revenues. In total, global revenues are anticipated to rise by 13% during the year. The Middle East and Africa region should experience the highest growth rate at 18%, driven by ongoing catch up in terms of connectivity and streaming habits. North America and Europe are expected to grow by 13% and 12%, respectively, while Latin America is the slowest-growing region, with 10%. Although the growth in advertising revenues is accelerating (+19% in 2024), the contribution of subscription OTT will remain the highest next year, surpassing advertising revenues by EUR 23 billion. Additional revenue streams are expected to take a growing importance in the industry, particularly in line with streamers' aims for profitability, including the returning distribution agreements and the licensing of catalogue titles to competitors, a step already taken by Disney, Paramount or Warner Bros. Discovery for instance. Despite all launching their Ad tier options, the platforms which will benefit the most from subscription revenues in 2024 remain Netflix, Amazon Prime Video and Disney for international US services, disputing the top positions with Chinese iQiYi and WeTV. The introduction of ad-supported options in 2023 has notably boosted their subscription numbers, a trend anticipated to continue into 2024. Ad-supported plans are set to take a growing place in streamers operations, expected to count 275M subscribers and to capture EUR 10.4 billion in subscription on top of advertising revenues.  Regarding future developments of the largest streamers, Netflix announced in January 2024 that it reached 23 million monthly active users on its advertising tier (the equivalent of 8% of its total 260 million...

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