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State of the Screens

Another New Streaming Service Launches, But Will Audiences VUit?

By September 11, 2020November 15th, 2021No Comments

Big news: More than 200 local broadcast TV stations have joined VUit, an ad-supported streaming effort.

Quote from Jack Perry – CEO @ Syncbak:
“We’re aiming to be the Netflix of live, local and free.”

Local broadcast station groups involved w/ VUit:
1) Gray Television
2) Meredith
3) Morgan Murphy Media
4) Northwest Broadcasting
5) Cowles Media Company
6) Heritage Broadcasting Group

Streaming platforms with VUit include:
1) Roku
2) Amazon Fire TV
3) Apple TV
4) iOS
5) Android

Recent deals in the local CTV/OTT space include:
1) Gray and Premion partnering
2) NBC Spot On launching
3) STIRR from Sinclair Broadcast Group

Flashback: Sinclair Enters Streaming Arena With Entertainment Bundle and Local Channels

Why this matters: 74% of video ad buyers want to buy streaming and digital together. Local broadcast station groups stand to benefit if they can provide a unified offering.

Local video ad forecast for 2020 according to BIA Advisory Services:
1) Broadcast = $18.6B
2) Cable – $5.9B
3) CTV/OTT = $900M

Local video ad growth between 2020-24:
1) CTV/OTT – ↑ 133%
2) Broadcast – ↑ 11%
3) Cable –  ↑ 5%

Our take: The growth of local CTV/OTT advertising to outpace $2.1B by 2024.  There is too much consumption shifting to streaming, and the demand for targeted video advertising is too high.

More #1: Local OTT Ad Sales Gaining Traction

More #2: Tegna And Gray Form OTT Partnership

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.