Latest news with #JohnHalley
Yahoo
4 days ago
- Business
- Yahoo
Ad-Supported Streaming Reaches 100 Million Subscriptions, Antenna Finds
The adoption of ad-supported tiers is on the rise, with Antenna finding that ad-supported streaming hit a total of roughly 100 million subscriptions at the end of the first quarter of 2025, up from 53 million two years prior. Per the new report from the research firm, 65% of ad-supported subscriptions in the U.S. were made up of new users, compared to 23% that were 'win backs,' who previously subscribed to a service, canceled, and resubscribed to the ad-supported tier, and 11% that were 'traders,' who switched from an ad-free tier. Hulu had the largest share of ad-supported plans in the first quarter at 24%, followed by Peacock at 22%, Netflix at 15%, Paramount+ and Disney+ at 14% each, Max at 8% and Discovery+ at 3%. When looking more closely at Netflix, Antenna found that 44% of ad-supported subscribers were new users, compared to 69% for all other streamers. Meanwhile, about 40% were traders who switched from an ad-free tier and 16% were win backs, compared to 6% and 25% for the rest of the streamers, respectively, while 16% were win backs, compared to 25%. The new data comes as both Nielsen and the streamers themselves offered their own updates about the state of their ad-supported progress during upfronts week in May. Disney reported a total of 164 million monthly active users globally across Disney+, Hulu and ESPN+, up from 157 million in January. Meanwhile, Netflix surpassed 94 million monthly active users. Amazon's Prime Video claimed an audience of more than 130 million in the U.S. alone, up from 115 million previously, with a 37% increase in monthly viewing hours. When combining the streamer with Amazon's other owned and operated entertainment properties such as Twitch, MGM Studios, Wondery and Amazon Music, the tech giant's entertainment portfolio reaches an average monthly ad-supported audience of more than 300 million. NBCUniversal noted its entire portfolio reaches 286 million people a month, with 95% of that being ad-supported. Peacock has nearly 100 million monthly active users, according to Comcast. Paramount ad chief John Halley told TheWrap that the company reaches a total of 115 million ad-supported viewers per month across its streaming footprint. Warner Bros. Discovery, which has a total of 122.3 million direct-to-consumer subscribers globally across Max, Discovery+ and traditional HBO cable subscriptions, did not break out its ad-supported viewership for Max, but said the base in the U.S. has doubled in the past year, with roughly half of new subscribers choosing that option. Per Nielsen, ad-supported platforms across the media landscape accounted for 72.4% of TV viewing in the first quarter of 2025, compared to 27.6% for ad-free platforms. Cable and broadcast made up roughly 28.9% and 28.7% of ad-supported viewing, respectively, while streaming accounted for the remaining 42.4%. The post Ad-Supported Streaming Reaches 100 Million Subscriptions, Antenna Finds appeared first on TheWrap.
Yahoo
5 days ago
- Business
- Yahoo
Paramount Fires WPP Media, Its Longtime Agency Of Record, In Cost-Saving Move Amid Skydance Merger Review
EXCLUSIVE: In a move that blindsided many staffers, Paramount has fired its longtime media agency of record in a cost-saving move as its proposed merger with Skydance Media continues to gestate. The abrupt change comes as Skydance and its private equity backer RedBird Capital are waiting in the wings to take control of Paramount, pending government approval of the $8 billion deal. Precisely who drove the ad agency decision is a matter of some dispute, according to sources, but Paramount's relationship with agencies primarily resides with John Halley, president of Paramount Advertising. On the sell-side, Paramount does business with agencies across its networks and streaming services and the opportunity apparently presented itself to create more favorable economics via a buy-side shift of agencies. More from Deadline Paramount Schedules Annual Shareholder Meeting, Sets Board Expansion Amid Skydance Merger Watch Paramount Plan To Pay Off Trump Sparks California Senate Probe, Requests For Ex-CBS News Brass To Testify Tastes Great, Less Filling? Report On Meta Plan For Cheaper, Fully AI-Made Ads Boosts Tech Giant's Stock As Media Agency Shares Slump WPP Media, formerly known as GroupM before a recent rebrand, had worked with Paramount Pictures for more than two decades, dating back to when the studio was part of Viacom. Three sources familiar with the situation told Deadline that the agency was dismissed and replaced by Publicis, another of the large agency players. The switch, which was not preceded by the customary review period (when an incumbent has a chance to retain the business), will result in significant cost savings and has been characterized as a business decision. Executives relayed the news selectively inside Paramount and to some people externally last Friday and word has spread quickly in subsequent days. Total annual billings from Paramount, spanning international ads for Paramount+ (Horizon Media handles the streamer domestically) as well as global campaigns for films like the latest Mission: Impossible installment, are in the range of $600 million, according to people with knowledge of the numbers. It wasn't immediately clear how much of a savings would be created by the move, and sources indicated that other factors like buying and planning strategy and account personnel were also considered in terms of workflow and strategy. Feedback about WPP from a range of Paramount employees, from directors to SVPs and EVPs had been generally positive in recent months. And unlike creative marketing teams, trailer vendors or others involved in campaigns, media agencies are usually not in the direct line of fire if corporate leadership wants to respond to box office or ratings results. Horizon's work on domestic Paramount+ is another question, with rumors circulating that it had moved to IPG in parallel with the larger move. Those agencies did not immediately respond to Deadline's request for comment. Publicis also did not respond to a request for comment. Reps from Paramount Global, Paramount Advertising, Skydance and WPP Media declined to comment when contacted by Deadline. The merger of Skydance and Paramount, which seemed a sure bet at the start of the year, has entered murkier territory thanks in large part to President Donald Trump's animus toward CBS News. Sentiment on the Paramount lot, Deadline has learned, has moved from the agonizingly slow crawl of the merger process and more about the abrupt changing of the guard with a longtime third-party vendor. The notion of swapping out an agency of record without warning is virtually unheard of on Madison Avenue. While clients are more antsy than ever and have jumped agencies in an effort to save money, gain efficiencies or for other reasons, the transition usually follows a more orderly and deliberate path. Halley oversees the sell-side efforts at Paramount and does not lead the outward promotion of the company's films, series, streaming and other wares. Still, there is some connection through the agency world between the two sides of the house. Since ascending to the No. 1 role in 2022, Halley has shown a willingness to buck convention, as with his conviction about ending decades of tradition by discontinuing the company's traditional big-stage upfront presentation every spring. In place of the splashy show, the company convenes a number of smaller agency-focused dinners with talent in New York, Los Angeles and Chicago. Skydance, along with RedBird, sealed its merger proposal with Paramount controlling shareholder National Amusements last July and remained in pole position after a 45-day 'go-shop' period expired. Mindful of legal restrictions against 'gun-jumping' by parties involved in corporate mergers, Skydance has maintained a fairly low profile as the review has unfolded. (CEO David Ellison, for example, was not a public presence at last month's Cannes Film Festival despite Mission: Impossible – The Final Reckoning having its world premiere there.) On a matter as consequential as the change of agency, sources indicated to Deadline, Skydance and RedBird could well have been consulted about the switch under the terms of the merger agreement. Paramount on Monday announced it would hold its annual shareholder meeting July 2 and also add three people to its board of directors. The merger does not require approval from shareholders given that Shari Redstone and her family control a large majority of the company's shares. The FCC is reviewing the transaction, but indications are that the review hasn't gotten under way with any degree of substance. Trump, meanwhile, is continuing to pursue his $20 billion lawsuit against 60 Minutes for the way the news magazine edited and promoted an interview with Democratic presidential nominee Kamala Harris. Attorneys for Trump have entered mediation with the Paramount camp, but a recent eight-figure offer from Paramount to settle the case did not yield an agreement. Best of Deadline 2025 TV Cancellations: Photo Gallery 2025 TV Series Renewals: Photo Gallery 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
11-05-2025
- Business
- CNBC
Trump's trade war is giving renewed importance to advertising Upfronts
Media companies are staring down widespread economic uncertainty as their annual pitch to advertisers and marketers kicks off. This week legacy entertainment giants including Comcast's NBCUniversal, Fox Corp. and Warner Bros. Discovery will stage presentations to ad buyers about why they should commit money to their upcoming slates of sports, entertainment and news programming. Netflix and Amazon's Prime Video are crowding the field holding their second annual Upfronts. Paramount Global held its presentations with advertisers and agencies last week. This year the stakes are high as chief marketing officers across brands formulate contingency plans for a variety of outcomes regarding tariffs, inflation, consumer sentiment and other macroeconomic shifts that could affect their spending. The evolving cost landscape adds to the existing headwinds facing the media industry: Pay-TV subscribers are fleeing for streaming options. And while streaming has begun to reach profitability for some companies, the services have yet to prove as lucrative as the traditional bundle. Meanwhile competition is stiff as digital and social media players capture the lion's share of ad dollars. It'll prove another year of Upfronts clouded by concerns following the Covid pandemic and Hollywood strikes. Last year showed stabilization in an ad market, and executives had earlier told CNBC 2025 was expected to be another year of normalization. Instead, the industry is bracing itself — and executives are fine-tuning their pitch for the moment. "Media becomes more complicated in the landscape that's defined by inflation, regulatory uncertainty, shifting go-to-market timelines, and that serves as this backdrop for the season," said John Halley, ad sales chief at Paramount. "In moments of uncertainty like this there are very few places that offer the reach, the brand safety and the impact of the Paramount portfolio. That's an important point to make in a market like this." In interviews with the top ad chiefs among the legacy media companies, executives touted sure-fire content and reliable viewership metrics in an effort to demonstrate the importance of advertising during uncertain times. Many executives said they have yet to see a "material" pullback on ad spending, as had been feared. Chief among the top categories during Upfronts is live sports, they said. Live events, like awards shows, and so-called "must-see TV" will also be a big factor in conversations. "Sports is having a halo on live [TV] in general," said Gina Reduto, executive vice president of ad strategy at NBCUniversal. Although general entertainment has fallen behind sports in ratings, shows like Warner Bros. Discovery's "The White Lotus," which generated steady viewership and controlled the cultural conversation on a weekly basis, stand out. "I think everyone knows that regardless of what happens, they still have to sell, they still have to move [product]," said Rita Ferro, Disney's president of global advertising. "They say, 'We still have to deliver products and services to our customers, and we have to do that in the best ways possible.' That's understanding the parameters we're dealing with and what those implications are in terms of pricing." Concerns that President Donald Trump's trade war could jack up prices have yet to translate into a pullback in advertising spending, media executives told CNBC. Quarterly reports for media companies have yet to reflect any decrease in spend due to tariffs, although the decline of the linear TV bundle has weighed down financials. WBD has yet to see "any material cuts" to its advertising volume, said Ryan Gould and Bobby Voltaggio, the company's presidents of U.S. advertising sales. "The sentiment in the market isn't really indicative of what we're seeing currently. But you know, obviously, the future state of impact is yet to be known," said Voltaggio. Jeff Collins, Fox's president of ad sales, echoed his peers: "Every client that we're talking with obviously has their scenario planning down for different things that could happen. But I think one of the important lessons that they learned during Covid was not to overreact to uncertainty. "Obviously you need to have a plan, and they all have plans," Collins said. "But until there's some sort of tangible impact to their business, we haven't seen anyone really looking to pullback." Disney's Ferro said her team has spent additional time with advertising partners in recent months, discussing various scenarios in which tariffs could affect different categories and products. She added chief marketing officers she's spoken with are operating in what she called "war rooms." Ferro recounted specific conversations with a mobile phone company (which she declined to identify) that highlight the trade policy volatility: The phone company on a Friday in mid-April decided to pull an order for roughly $1.5 million in advertising for the month in light of tariff exposure. That weekend, the Trump administration exempted smartphones and other devices from the tariff scheme. "So on Monday, that deal that went away on Friday went to order," said Ferro. "It's literally in real time what's happening. I think there's a lot of scenarios they're going through and it's very in real time," Ferro said. Data firm eMarketer estimated traditional TV advertising spending during Upfronts will decline by between $2.78 billion and $4.12 billion, depending on the severity of the tariff impact. Spending on streaming in these annual discussions will be more stable, however, with eMarketer expecting $1 billion in growth in that category. Media companies sell advertising for both platforms together. This gives advertisers the upper hand when negotiating pricing, with the exception of sports content. It's likely the companies that are more affected by the loss of pay-TV subscribers will be willing to lower their pricing, said Jonathan Gudai, CEO of Adomni, a digital advertising platform. Ad data firm EDO said there has already been a pullback on estimated ad spending in the automotive and various retail and consumer sectors since Trump's announcement on tariffs. At the same time, concerns from consumers on soon-to-be higher prices has translated to higher ad effectiveness. For example, home appliances brands cut estimated spending by 30%, but consumers' responsiveness to ads rose 77%. Media executives — who largely declined to discuss pricing — all said data from firms like EDO is key in discussions with advertisers, which are increasingly looked for tailored, targeted buys rather than sheer audience size. "Advertisers are saying, 'I want to buy very specific audiences.' That's why outcomes are so important," said Kevin Krim, CEO of EDO. "You've got to have a very granular view of what you're willing to pay for." All of these factors play into a recurring question for the advertising market: Do the annual Upfronts still matter? "I've been in the business for about 30 years and the question of do we still need the Upfront [presentations] comes up every single year," said Fox's Collins. The answer this year for the traditional media giants may be: more than ever. "That's the last moment that you want to quit advertising because, you know, you got to try harder, not sort of capitulate," said EDO's Krim. Krim added the need for flexibility makes real-time data more important: "You cannot be using last year's model." He also said it may further shift ad dollars to programmatic buying, putting media companies on a more "level playing field" with digital companies like Meta, Amazon and Google. Despite being behemoths in the ad space, these tech companies have started to reveal the beginnings of cracks in their ad businesses. The annual presentations could also lock in buying for some of the consistent favorite categories. NBCUniversal's Reduto told CNBC that locking in ads during the Upfronts gives "an opportunity for advertisers to guarantee they have access to the things they know truly drives sales." Earlier this year, Mark Marshall, NBCUniversal's chairman of global advertising and partnerships said in a letter that mapped out the company's upcoming slate of big sports events, including the Super Bowl, Olympics and World Cup, as proof of Upfronts' utility. "I think from an advertiser perspective they still value the ability to lock in the franchise positions that they want to own, lock them in at desirable pricing, and be afforded flexibility," said Collins.
