Ad Sales Projected to Make Up 28% of Streaming Revenue by 2028, New PWC Study Finds

variety.com:

Jennifer Maas TV Business Writer Ads are about to become even more important to streaming strategies for companies including Disney, Netflix, Warner Bros.

Discovery and Amazon, according to a new study from firm PricewaterhouseCoopers. In its Global Entertainment & Media Outlook 2024-2028, PwC projects that by 2028, “advertising will make up almost 28% of all the money that streaming services make,” marking a notable increase from the 20% streaming ad sales accounted for in 2023.

The entertainment and media industry, which PwC forecasts will reach $3.4 trillion as a sector by 2028, is estimated to see global subscriptions to OTT services rise to 2.1 billion by 2028 up from 1.6 billion in 2023 — a 5.0% compound annual growth rate (CAGR).

However, the global average revenue per OTT video subscription is projected to only increase from $65.21 in 2023 to $67.66 in 2028.