Stocks

The Impact of Ad-Based Streaming on Netflix and Potential Gains for ROKU and TTD Stocks

Published January 22, 2024

The landscape of video streaming is taking a significant turn with the strong uptick in ad-based streaming services. At the forefront of this shift is Netflix, Inc. NFLX, a pioneer in subscription-based streaming. This movement toward incorporating advertisements is not just a strategic change for NFLX; it also signals potential advantages for companies like Roku, Inc. ROKU and Trade Desk, Inc. TTD, both of which stand to gain from this new direction in the streaming market.

Netflix Embraces Ad-Based Streaming

As an established leader in the streaming industry, NFLX has historically sustained itself on a subscription model without ads. The platform boasts a vast array of content, from films to TV series, including many in-house productions. Founded in 1997, Netflix has evolved into a staple name in entertainment. Now, NFLX is opening its doors to a different revenue stream by including ads in its service, potentially drawing a new demographic and leading to increased revenue growth.

Roku and Trade Desk Poised for Growth

ROKU, known for its efficient streaming platform, could potentially see a surge in usage as advertisement-based content becomes more prevalent. The capability of ROKU's technology not only to facilitate streaming but also to seamlessly integrate advertising content makes it a key player to watch. Similarly, TTD leverages technology to manage digital advertising campaigns across multiple platforms. As advertisement demand in the streaming sector grows, TTD's sophisticated advertising solutions may see higher demand, supporting the growth of its business and stock value.

streaming, advertising, technology