Stan, Netflix and Presto all likely to eventually allow video advertising

November 8, 2014 9:15

Brownlow

The new ad-free subscription vidoe streaming services launching in Australia may be tempted to abandon that position with the lure of advertiser dollars amid a continued shortage of online video ad inventory according to one PwC analyst.

On Wednesday Nine Entertainment and Fairfax Media’s joint venture StreamCo announced its consumer brand called Stan, which the streaming company said would be built around the principle of ‘No ads: No lock-in contracts’ similar to US rival Netflix.

“There are going to be two revenue streams,” said Megan Brownlow, ‎editor, Australian Entertainment and Media Outlook at PwC. “Something like Stan might initially say it won’t have advertising but when you look at the growth in video advertising, which we are forecasting to grow at 36 per cent per annum for the next five years, it will be hard to turn that down.”

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Nic Christensen

Nic Christensen worked for Mumbrella from 2013 to 2016, in roles including deputy editor and media & technology editor. He is former media writer for The Australian and has also worked as a reporter for The Daily Telegraph and senior producer for Radio 2GB.

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