Can Ad-Supported Streamers Still See Growth as Consumers Want Even Less Ads?

• by Wayne Friedman , Staff Writer, Yesterday

There is seemingly no end to efforts when it comes to blocking TV-video advertising, as ad blockers keep looking to gain new ground. 

But premium TV-video platforms keep fighting back. And even then, how much do consumers care -- especially with those popular premium streaming platforms?

One ad-blocking technology, SponsorBlock, says Google’s YouTube will now integrate video ads into its content before it gets to your device (mobile, desktop, smart TV, for example). 

This is different from most deliveries of TV-video ads, which come to your device separately -- and where a personal ad blocker can stop that transmission.

In addition, Google, according to one report, says that if an ad blocker is installed the total YouTube viewing will be “suboptimal" -- and that ad blockers “violate” YouTube’s terms of service.

This is happening amid a steady increase in more consumer adoption of subscription video on platforms with “limited” advertiser options. 

By limited, we mean anywhere from four to six minutes an hour of advertising -- all of which is much less than legacy, linear TV advertising on networks, which can run, on cable channels, up to 16 minutes in non-content advertising, promotion, and other messaging time per hour.

Looking at the broader overview of ad-supported TV-video platforms, do consumers feel to an extent that they are getting good enough deals with streamers in terms of lower ad messaging platforms? Does that extend to hybrid professional publisher content/semi-professional user-generated content generator platforms, like YouTube?

At the moment, it seems that those partly ad-supported/part subscription plans are working.

So how essential are ad blockers to the modern streaming video industry?

Analysts have mused as the streaming market has matured more changes will be coming -- including slowly increasing subscription fees. 

But that may not be the only change in monetization. Expectations are hard-pressed, still money-losing streamers might slip in a few more messaging units onto their ad-supported options.

A mature streaming market may then be a misnomer.

The real slowdown will come when the least expensive streaming options not only raise subscription fees but add more commercial messaging.