The Rise of Vertical Video on Streaming Platforms: Fad or Strategy?
The world of streaming services is abuzz with a new trend: vertical video. It seems like all the major players are jumping on the bandwagon, launching their own versions of short-form, mobile-friendly content. Disney+, Netflix, Peacock, and Paramount have all recently announced or rolled out vertical video features, leaving many to wonder: is this worth it?
The Trend: Streaming Platforms Launching Vertical Video Features
The list of streaming services embracing vertical video is growing by the day. Disney launched its feed for Disney+, called Verts, after experimenting with a similar feature on ESPN+. The goal, seemingly, is to provide users with a new way to discover content. Netflix is rolling out its version at the end of the month; Peacock, which has housed vertical video on their app for over a year, is doubling down with an entire tab devoted solely to Bravo clips. And after months of speculation, Paramount just rebooted its mobile app to include – you guessed it – short-form video capabilities.
The Missing Piece: Advertising Opportunities
When a new feature like vertical video emerges, especially one that’s so clearly inspired by social media giants like TikTok and Instagram, you’d expect to see some discussion around ad placement opportunities. After all, these platforms have made a fortune from short-form video ads. But in this case, ads aren’t on the menu – not yet, anyway. I’ve confirmed this with Disney and NBCU so far, although Paramount and Netflix didn’t get back to me in time for this newsletter.
Possible Reasons for Lack of Advertising Opportunities
So why the lack of advertising opportunities? There could be a couple of reasons for this. Pretty much all of these vertical video features are positioned as a discovery engine – a way to convert audiences toward a streamer’s available lineup of TV shows and movies. That’s why the focus seems to be on clipping and repackaging existing content, a concept already so ubiquitous that it served as a punch line in a recent ad-tech joke.
Analysis and Insights
The Bigger Picture: Streaming Platforms’ Strategies
Despite the trend, is vertical video worth it for streaming platforms? The answer isn’t clear-cut. On one hand, these platforms are likely prioritizing discovery and engagement over monetization with vertical video features. By providing users with a new way to interact with their content, they’re building audience profiles and collecting valuable data. This approach might not generate immediate revenue, but it could pay off in the long run.
The Monetization Conundrum
On the other hand, the lack of advertising opportunities may indicate a focus on building audience profiles and data collection, rather than immediate revenue generation. This strategy could be a play for the future, as streaming platforms continue to consolidate and figure out their ad-tech strategies.
The TikTok Factor
It’s also worth noting that these streaming platforms are likely trying to compete with social media giants like TikTok, YouTube Shorts, and Instagram Reels. By offering short-form, mobile-friendly content, they’re trying to capture users’ attention and keep them engaged. Whether or not this strategy will pay off remains to be seen.
Conclusion
Streaming platforms are embracing vertical video, but the benefits and monetization strategies are still unclear. As the trend continues to unfold, one thing is certain: the world of streaming services is getting more complex, and the lines between traditional TV and social media are continuing to blur. Whether or not vertical video is worth it for streaming platforms remains to be seen, but one thing is certain – it’s an interesting development in the ever-changing world of ad-tech.
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