We’ve reported some of the high CPMs some of the streamers ask for—is there a thought that could drive more money from TV to the likes of YouTube, TikTok or even the CTV platforms that host the streamers?
All of the streamers, very generally speaking, launch with very small user bases and there’s usually a strong amount of advertiser interest, and that’s why the CPMs start high. But over a fairly short period of time, as their subs grow and their usage grows, the usage starts to way outpace the ad spend. What we’ve seen really across the board in the streaming space is new properties that have been launched the last couple of years is a high starting price, but it comes down year over year over year, and I do think we’ll see a point where the linear CPMs and the streaming CPMs will meet in the middle over time.
But, one of the reasons why the upfront is not as critical as it used to be—it still has value and it’s still important and there are still benefits to participating upfront—advertisers have so many other outlets for video needs and premium video needs that it’s not the be-all-end-all the way that it used to be. Those are YouTube and it’s TikTok and it’s all of those things that you mentioned. And there’s a difference: YouTube is different content, different length than typically what’s on network and streamers, but it’s also reflected in the CPMs that we pay. We pay an appropriate price for the content we’re airing in. You just can’t ignore YouTube. It is the largest CTV streaming entity out there and you just can’t ignore it. The viewers have spoken, so to speak, and are spending time there and that’s something that can’t be avoided anymore—it’s not just short videos on your phone. Now it’s on the TV screen too.
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