Wednesday, June 19, 2024

Video Sreaming Ad Value Might be Between $8 and $10 Per Month, Per Subs on Those Accounts

How much financial value does advertising represent for popular content apps? Nearly 100 percent for ad-supported apps including Facebook and Google search or YouTube. 


A new wrinkle is the growing importance of advertising revenue for e-commerce or subscription-based streaming video products


And one way of quantifying advertising value is to compare the ad-free and ad-supported versions of streaming video services, where the price difference to the consumer is between $8 a month to $10 a month when choosing to use an ad-free version of the app or service. 


App/Service

Single-User 

Ad-Free Per Month

Single-User w/Ads Per Month

Implied Ad Value

Spotify

$12.00

$0.00

$12.00

YouTube

$14.00

$0.00

$14.00

Hulu

$18.00

$8

$10.00

Netflix

$15.50

$7.00

$8.50


And that is the implied value of the advertising.

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