We recently reported on how Netflix had been forced to drastically reduce its advertising rates to attract advertisers. Now it is Disney who is resorting to a similar strategy to attract new advertisers. The company is offering significant reductions in its advertising rates on Disney+, lowering the cost per thousand viewers (CPM) by between 10% and 15% to secure broader advertising deals, according to sources with knowledge of recent negotiations in the market. upfront.
This Disney strategy, led by Rita Ferro, president of advertising sales, seeks to gain early commitments on future programming. However, this tactic has generated friction between its rivals, who are forced to reduce their own rates to avoid losing ground.
The television advertising market faces challenges due to the migration of viewers towards streaming and digital media, where there is less pressure to commit months in advance. In addition, Amazon Prime Video’s decision to introduce ads into its basic service has increased the supply of digital video inventory, further complicating the picture.
NBCUniversal and Warner Bros. Discovery have had to adapt to the new conditions imposed by Disney. NBCUniversal, despite adding new sporting events and premium content to Peacock, has been forced to compete with Disney’s lower rates. Warner Bros. Discovery, reluctant to significantly reduce CPMs for its Max streaming service, has found difficulty securing significant commitments.
Amazon and Netflix also face challenges trying to set their own CPM rates, with mixed results. While Amazon has found some success with its “Thursday Night Football,” other areas have not performed as well. Although Disney, NBCUniversal and Fox have made progress in securing advertising commitments, an overall decline in committed dollar volume is expected. Cable television and primetime broadcasts are hardest hit, while news programming faces new pressures due to advertisers’ preference for less polarized environments.
