""Whichever media company, if any, ultimately secures it controls the calculus of the streaming wars and so much more," said Mike Proulx, vp and research director at Forrester. Most buyers expect that should Netflix's acquisition go ahead after Q3 2026 - creating a "Goliath" in the streaming market, according to Proulx - the company would gain leverage in pricing discussions."
"With competition fierce and brands having a range of options available to them, advertisers have proven able to exert significant pressure on streamers to lower CPMs in recent years. "That has massively brought down streaming CPMs, which has been a huge boon for advertisers," said Harry Browne, vp of TV, audio and display innovation at Tinuiti."
"By autumn next year, those supply and demand equations may reverse. With one player removed from the game, and Netflix's inventory (and the audiences it draws in) strengthened, so too will be its negotiating hand. "I expect this would put upward pressure on CPMs and stall out some of the advertiser-friendly trends we've seen recently," added Browne."
Netflix and Paramount are competing to acquire Warner Bros. Discovery, with the winner set to reshape streaming market dynamics. A Netflix acquisition could create a dominant "Goliath" and strengthen Netflix's inventory and audience reach, improving its negotiating leverage with advertisers. Advertisers have recently forced down CPMs by exerting pressure across many platforms, benefiting brands. A reduced number of major streaming suppliers would reverse supply-demand trends, potentially driving CPMs upward and weakening advertiser-friendly pricing. Amazon has used Prime Video inventory as a loss leader to attract ad investment on its DSP. A Paramount deal would similarly raise prices, but to a lesser degree.
Read at Digiday
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