Ronn Torossian, CEO, 5WPR

So said the Fairy Godmother in Walt Disney’s long-time popular movie, Cinderella.   But whether this applies to Disney+ which premiered on November 12 is another story yet to be told.  Disney+ joins Apple TV+ which debuted November 1 on OTT and Roku, which purchased Dataxu, an ad tech platform, in October.  They join a field of advertisers already crowded by the likes of Amazon Prime, Hulu, and YouTube TV, just to name a few.

OTT, otherwise known as over the top or online television stands for film or video content delivered via the internet.   Lifewire, a monthly technology content publisher, reported this spring that network service providers are losing hundreds of million dollars to OTT operators.  It said it expects them to counter. 

Despite any anticipated reaction from providers, these recent actions have grabbed the attention of marketers  Adweek estimated that advertising revenue will exceed $2 billion this year, an increase of 20%, because of the advertising spent on OTT streaming video.

WHY?

As entrepreneur Hamed Wardak asked, “Imagine the ability to leverage the power of storytelling and using video to do it while targeting data and then being able to measure one’s results.  That’s the power of OTT versus traditional television.   Despite the crowded field, Apple TV+ and Disney + are expected to make OTT even more popular to viewers and attractive to advertisers.  In its September 10 issue, iMore, Apple’s online publication, revealed some of the new programs it will be airing.  They included “Amazing Stories,” a series from Steven Spielberg’s Amblin Entertainment, “The Morning Show,” starring Reese Witherspoon and Jennifer Anniston, and “See,” starring Jason Mamoa and Alfre Woodard. “

Adweek predicted that Disney+ will become popular very quickly.  It said it expects Disney to not only offer new shows based on popular subjects like Marvel Comics and Star Wars, but also reach into its expansive library of 7,000 TV episodes and installments and 500 films.  And to attract a new and huge instant audience, Adweek reported that Disney+ will be offered free to Verizon’s 100 million unlimited wireless customers for its first year.

NEXT?

Apple has the advantage of having the ability to use its experience in the tech industry to drive sales from viewers to advertisers.  If they can work with advertisers in measuring the impact advertising on Apple TV+ has, they can be expected to grow rapidly.

Adweek suggested that if Disney+ provided case studies proving the effectiveness of its platform, it, too, will be successful.  Disney+ will certainly have the shows to attract viewers.  It will have to demonstrate the worthiness of them to advertisers.

If the entry of Apple TV+ and Disney+ is successful as some observers believe it will be, the biggest negative impact may be felt by Amazon.  According to eMarketer, the shows and OTT ads are expected to reduce Amazon’s ad revenues by 20% over the next few years.

Marketers considering advertising on Apple TV+ and/or Disney+ need to monitor their launch and subsequent results each provides to advertisers on the reach and effectiveness of ITT.  This might well be the future advertising home for some companies.

About the Author: Ronn Torossian is CEO of 5WPR, a digital marketing agency.