Netflix is poised to surpass Disney+ in the US advertising revenue race in 2024, according to a report by Insider Intelligence. The forecast reveals that the streaming giant's advertising revenue is expected to surge by 50.3%, reaching an estimated $1 billion.
Reuters reported the insight, underscoring Netflix's dominance, particularly after Walt Disney's Disney+ is projected to post a 16.1% increase in advertising revenue, reaching around $912 million in 2024. Despite this, Netflix is on track to conclude the current year with a substantial lead, boasting approximately $100 million more in ad sales than its rival.
The Netflix logo is seen at the Netflix Tudum Theater in Los Angeles, California, on September 14, 2022.
Netflix Still In Command
The projection underscores the success of Netflix's multifaceted strategy, including price hikes and a robust crackdown on password sharing, driving more viewers toward its ad-supported plan. The effectiveness of these measures became evident with the addition of nearly 9 million subscribers during the September quarter, with the ad-supported tier contributing significantly to these sign-ups.
Furthermore, Netflix strategically raised prices for commercial-free plans in October, directing more customers toward its ad-supported offering, which was introduced in November last year at an economical price of around $7 per month.
Insider Intelligence analyst Ross Benes attributes Netflix's ability to command slightly higher ad prices than its competitors to the pent-up demand from advertisers eagerly awaiting the introduction of Netflix's ad tier over the years.
The analyst notes that viewers' tendency to spend more time per day on Netflix compared to other streaming services positions the company for significant ad revenue growth. Conversely, Disney has encountered challenges, particularly in the aftermath of recent box-office disappointments.
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While Disney+ currently faces a gap in ad revenue figures, the report suggests that the company could narrow this divide through increased adoption of its ad tier and the integration of Disney+ and Hulu into a unified app.
Presently, only about 5% of Netflix's U.S. subscribers experience commercials, while Disney+ exposes 17% of its subscribers to ads. The figures are expected to evolve, with Disney projecting to reach about a fifth of its subscribers with ads, while Netflix is anticipated to experience a marginal increase to 7.5% in the next year.
Streaming Giant Suffers Outage, Facing New Controversy
In a separate development, Netflix grappled with a global outage on Monday evening, causing disruptions for users worldwide. Reports of difficulties connecting to Netflix and encountering the "tvq-pb-101" error message surfaced around 5 PM ET, persisting until approximately 8 PM ET.
The outage impacted users on various devices, including Roku smart TVs, PS5, and Xbox, with scattered reports from different cities in the U.S. and other countries. While Netflix's status page initially failed to acknowledge the issues, the service has since been restored, per The Verge.
Additionally, controversy has emerged in Tunisia, the birthplace of the ancient Carthaginian general Hannibal, over Netflix's decision to cast Denzel Washington, a black actor, in the role. The casting choice has sparked debates on race, representation, and historical accuracy, following a similar controversy in Egypt over a Netflix docudrama about Cleopatra.
Tunisian newspapers, social media, and even parliamentary discussions have seen discourse on the portrayal of Hannibal's skin tone, with some accusing Netflix of promoting "woke culture," as per a report from The Guardian. An online petition has urged Netflix to cancel the film, citing a "historical error."
Hannibal, born in Carthage, is renowned as one of history's greatest military leaders, having led his troops and war elephants against the Romans in 218 BC.
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