Executive Summary

This is the latest installment in an ongoing series of quarterly video overviews focusing on monetization, audience, platforms and content. On the radar this quarter: Advertisers increase their upfront commitments to TV and digital video platforms.

How much money are US advertisers spending at the Upfronts and NewFronts?

We forecast that total ad spending at the TV Upfronts will increase by 2.4% to $21.25 billion in 2019. Digital video ad spending committed in advance will grow 19.6% to $4.39 billion in 2019. But only 12.2% of the $36.01 billion that US advertisers will spend on digital video in 2019 will be committed in advance.

How much digital video advertising is sold programmatically?

US marketers will spend $29.24 billion on programmatic video this year, which accounts for 49.2% of all US programmatic display spend.

Which tech and media companies announced new streaming services?

The Walt Disney Co. announced its subscription streaming service Disney+, took full operating control of Hulu and expanded content for ESPN+. Apple, NBCUniversal (NBCU) and WarnerMedia also shared details about their upcoming streaming services. Amazon is reportedly working on a free ad-supported news app and asking advertisers to commit money to new streaming channels.

How is video content licensing changing?

Netflix continues to burn through cash to fund its original content. Meanwhile, TV networks are building their own streaming services and becoming more selective about who they license content to. It is estimated that Disney, WarnerMedia and NBCU made a collective $26.5 billion through content licensing in 2018. As TV networks cut off Netflix, they’ll search for new revenue streams to make up for the hit their content licensing revenues will take.

WHAT’S IN THIS REPORT? This report covers key events in the digital video industry based on data, trends and business activity in Q2 2019.

KEY STAT: Digital video ad spending committed in advance will grow 19.6% to $4.39 billion in 2019.