Recently, we learned that ad-supported downloads will be coming to streaming services in the beginning of 2020. In an interview with Cord Cutters News, president and chief operating officer of Penthera Dan Taitz explained how offline viewing will benefit both consumers and distributors.
The benefit to distributors is clear. Offline ads create an opportunity for ad-supported services to offer offline viewing as a feature without losing out on ad revenue. Ads on downloaded content would be similar to the online viewing experience, Taitz explained, saying they would be relevant, meaningful, and delivered smoothly as part of the viewing experience.
When asked about the potential revenue streaming services could bring in by adding offline ads, Taitz used Tubi TV as an example. With 20 million monthly users, he estimates that the free streaming service could bring in $3 million monthly from offline ads. (The only ad-supported free streaming service we know of like this would be ones like Tubi or Pluto TV.)
How would this affect viewers? Taitz believes offline viewing will play a major part in the way consumers view content going forward.
“Offline is a critical element to a great viewing experience,” he commented. While many viewers download content to watch while away from a home internet connection, he believes offline is also the solution for common streaming issues like buffering and unreliable connections. With offline viewing, users can watch content without those interruptions.
But will viewers be willing to watch ads in exchange for the more seamless viewing experience? Taitz says yes. While he admits that viewers generally don’t enjoy ads, they’ll be willing to have a few short ad breaks if it means having access to “free, premium viewing.”
While Penthera isn’t sharing the names of the services that will be the first to introduce offline ads, Taitz did again comment that they have been in testing with a major broadcaster and an ad-supported streaming service.
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