Expect streaming consolidation: Disney's Rita Ferro

At The Future of TV Advertising Global event in London, Rita Ferro, Disney's President of Global Advertising, delivered insights into the future of the TV streaming landscape, predicting a significant wave of consolidation in the next 12-24 months. Ferro emphasized that the current number of competitors in the streaming market is unsustainable, and viewers can expect a substantial transformation within two years.

About the viability of the existing multitude of streaming services, Ferro expressed confidence in the inevitability of consolidation. "Ultimately, you're going to see more consolidation because there's no way that all of these players will continue to exist without multiple revenue streams," she explained.

In a conversation with Justin Lebbon, Director of Adwanted Events, Ferro provided a positive update on Disney's streaming business, citing an excellent end to the year. Despite the challenges faced throughout the year, Ferro noted that Disney is in a strong position, anchored particularly in sports and streaming.

Reflecting on the successful one-year rollout of Disney+'s ad tier, Ferro highlighted its exceptional performance. She shared that Disney+ now boasts 1,000 advertisers globally, with half of the new subscribers in the US opting for the ad-supported tier.

Ferro attributed the positive response to the ad tier to Disney's careful approach in ensuring the "right ad load, the right ad experience, and the right ad policy." Drawing a distinction from competitors like Netflix, Ferro underscored Disney's advantage, leveraging its ownership of Hulu and its extensive advertising tech stack.

Addressing concerns about the potential disruption of user experience with ads, Ferro emphasized Disney's commitment to being "very careful." With a longer history of working with advertising, Disney limits its ad load to approximately four minutes per hour and strategically places ads in content originally designed without ad breaks.

While acknowledging the challenges, Ferro stressed the importance of navigating the "minefield" of balancing advertising with a seamless streaming experience, highlighting Disney's dedication to preserving the quality of user engagement.