Video Advertising Space Is Shrinking
Last week Amazon inked a deal with CBS to provide streaming content to Amazon Prime subscribers. Amazon has now announced the same deal with NBCUniversal that covers about 1000 films and television shows. Amazon Prime is, like NetFlix, a subscription based service that does not provide advertising like Hulu does. This trend of putting content behind a paywall seems to be escalating especially when it comes to streaming video content. There are still services that earn income from advertising, but the content behind paywalls is growing.
This is not good news for the digital agency. While it speaks to a growing trend of people going online for what was once broadcast programming, that trend is countered and overwhelmed by the lack of advertising options for that content. The digital agency needs to prepare for a world without premium content to push its advertising. The digital agency also needs to make sure that its advertising is quality. Until the day comes when all premium streaming content is behind a paywall, the digital agency, by offering quality advertising, can keep users from flocking to the paywall by not making them regret the free options.