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Longer commercial breaks lower the value of ad-based streaming subscriptions

But that old promise to HBO Max subscribers hasn’t carried over to Max, even though WBD is renaming Max to HBO Max this summer. As PCWorld noted, Max has been showing ads during HBO original content like The Last of Us. The publication reported seeing three ad breaks during the show in addition to ads before the show started.

Ars Technica reached out to WBD for comment about these changes but didn’t receive a response ahead of publication.

Depleting value

With numerous streaming services launching over the past few years, many streaming customers have been pushed to subscribe to multiple streaming services to have access to all of the shows and movies that they want. Streaming providers also regularly increase subscription fees and implement password crackdowns, and ad-based subscriptions were supposed to offer a cheaper way to stream.

Streaming providers forcing subscribers to watch more commercials risk depleting the value of ad-based streaming tiers. Online, for example, people are questioning the value of their ad-based Max subscriptions, which start at $10 per month, compared to $17/month for ad-free Max.

“I don’t how it could be worse. I watched several HBO documentaries, and they already had more adverts than Pluto TV [a free, ad-supported streaming service]. The kids programs for Cartoon Network started out with few adverts, but they have been loading up on adverts,” a Reddit user said in response to Max showing more ads.

Another Reddit user said that “if [Max] has ads, it shouldn’t be $10/month.”

Beyond Max, PCWorld cited MediaRadar data finding that Disney+ shows over 5.3 minutes of ads per hour, and Hulu shows over seven minutes of commercials hourly.

Such lengthy commercial breaks can extend past a convenient snack or bathroom break and force subscribers to consider the value of their time and how much time they want to allocate to get through a 22-minute program, for example.

With linear TV reportedly showing 13 to 16 minutes of commercials per hour, though, streaming providers still have space to show even more ads while still claiming that they show fewer ads than alternatives.

Longer commercial breaks lower the value of ad-based streaming subscriptions Read More »

smart-tv-os-owners-face-“constant-conflict”-between-privacy,-advertiser-demands

Smart TV OS owners face “constant conflict” between privacy, advertiser demands

DENVER—Most smart TV operating system (OS) owners are in the ad sales business now. Software providers for budget and premium TVs are honing their ad skills, which requires advancing their ability to collect user data. This is creating an “inherent conflict” within the industry, Takashi Nakano, VP of content and programming at Samsung TV Plus, said at the StreamTV Show in Denver last week.

During a panel at StreamTV Insider’s conference entitled “CTV OS Leader Roundtable: From Drivers to Engagement and Content Strategy,” Nakano acknowledged the opposing needs of advertisers and smart TV users, who are calling for a reasonable amount of data privacy.

“Do you want your data sold out there and everyone to know exactly what you’ve been watching … the answer is generally no,” the Samsung executive said. “Yet, advertisers want all of this data. They wanna know exactly what you ate for breakfast.”

Nakano also suggested that the owners of OSes targeting smart TVs and other streaming hardware, like streaming sticks, are inundated with user data that may not actually be that useful or imperative to collect:

I think that there’s inherent conflict in the ad ecosystem supplying so much data. … We’re fortunate to have all that data, but we’re also like, ‘Do we really want to give it all, and hand it all out?’ There’s a constant conflict around that, right? So how do we create an ecosystem where we can serve ads that are pretty good? Maybe it’s not perfect …

Today, connected TV (CTV) OSes are largely built around not just gathering user data, but also creating ways to collect new types of information about viewers in order to deliver more relevant, impactful ads. LG, for example, recently announced that its smart TV OS, webOS, will use a new AI model that informs ad placement based on viewers’ emotions and personal beliefs.

Smart TV OS owners face “constant conflict” between privacy, advertiser demands Read More »

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Inside the firm turning eerie blank streaming ads into useful nonprofit messages

AdGood’s offerings also include a managed service for ad campaign management for nonprofits. AdGood doesn’t yet offer pixels, but Johns said developments like that are “in the works.”

Johns explained that while many nonprofits use services like Meta and Google AdWords for tracking ads, they’re “hitting plateaus” with their typical methods. He said there is nonprofit interest in reaching younger audiences, who often use CTV devices:

A lot of them have been looking for ways to get [into CTV ads], but, unfortunately, with minimum spend amounts, they’re just not able to access it.

Helping nonprofits make commercials

AdGood also sells a self-serve generative AI ad manager, which it offers via a partnership with Streamr.AI. The tool is designed to simplify the process of creating 30-second video ads that are “completely editable via a chat prompt,” according to Johns.

“It automatically generates all their targeting. They can update their targeting for whatever they want, and then they can swipe a credit card and essentially run that campaign. It goes into our approval queue, which typically takes 24 hours for us to approve because it needs to be deemed TV-quality,” he explained.

The executive said AdGood charges nonprofits a $7 CPM and a $250 flat fee for the service. He added:

Think about a small nonprofit in a local community, for instance, my son’s special needs baseball team. I can get together with five other parents, easily pull together a campaign, and run it in our local town. We get seven kids to show up, and it changes their lives. We’re talking about $250 having a massive impact in a local market.

Looking ahead, Johns said he’d like to see AdGood’s platform and team grow to be able to give every customer “a certain allocation of inventory, whether it’s 50,000 impressions a month or 100,000 a month.”

For some, streaming ads are rarely a good thing. But when those ads can help important causes and replace odd blank ad spaces that make us question our own existence, it brings new meaning to the idea of a “good” commercial.

Inside the firm turning eerie blank streaming ads into useful nonprofit messages Read More »

amazon-prime-video-subscribers-sit-through-up-to-6-minutes-of-ads-per-hour

Amazon Prime Video subscribers sit through up to 6 minutes of ads per hour

Amazon forced all Prime Video subscribers onto a new ad-based subscription tier in January 2024 unless users paid more for their subscription type. Now, the tech giant is reportedly showing twice as many ads to subscribers as it did when it started selling ad-based streaming subscriptions.

Currently, anyone who signs up for Amazon Prime (which is $15 per month or $139 per year) gets Prime Video with ads. If they don’t want to see commercials, they have to pay an extra $3 per month. One can also subscribe to Prime Video alone for $9 per month with ads or $12 per month without ads.

When Amazon originally announced the ad tier, it said it would deliver “meaningfully fewer ads than linear TV and other streaming TV providers.” Based on “six ad buyers and documents” ad trade publication AdWeek reported viewing, Amazon has determined the average is four to six minutes of advertisements per hour.

“Prime Video ad load has gradually increased to four to six minutes per hour,” an Amazon representative said via email to an ad buyer this month, AdWeek reported.

That would mean that Prime Video subscribers are spending significantly more time sitting through ads than they did at the launch of Prime Video with ads. According to a report from The Wall Street Journal (WSJ) at the time, which cited an Amazon presentation it said it reviewed, “the average ad load at launch was two to three-and-a-half minutes.” However, when reached for comment, an Amazon Ads representative told Ars Technica that the WSJ didn’t confirm that figure directly with Amazon.

Amazon’s Ads spokesperson, however, declined to specify to Ars how many ads Amazon typically shows to Prime Videos subscribers today or in the past.

Instead, they shared a statement saying:

We remain focused on prioritizing ad innovation over volume. While demand continues to grow, our commitment is to improving ad experiences rather than simply increasing the number of ads shown. Since the beginning of this year alone, we’ve announced multiple capabilities, including Brand+, Complete TV, and new ad formats—all designed to deliver industry-leading relevancy and enhanced customer experiences. We will continue to invest in this important work, creating meaningful innovations that benefit both customers and advertisers alike.

Kendra Tang, programmatic supervisor at ad firm Rain the Growth Agency, told AdWeek that Amazon “told us the ad load would be increasing” and that she’s seen more ad opportunities made available in Amazon’s ad system.

Amazon Prime Video subscribers sit through up to 6 minutes of ads per hour Read More »

breaking-down-why-apple-tvs-are-privacy-advocates’-go-to-streaming-device

Breaking down why Apple TVs are privacy advocates’ go-to streaming device


Using the Apple TV app or an Apple account means giving Apple more data, though.

Credit: Aurich Lawson | Getty Images

Credit: Aurich Lawson | Getty Images

Every time I write an article about the escalating advertising and tracking on today’s TVs, someone brings up Apple TV boxes. Among smart TVs, streaming sticks, and other streaming devices, Apple TVs are largely viewed as a safe haven.

“Just disconnect your TV from the Internet and use an Apple TV box.”

That’s the common guidance you’ll hear from Ars readers for those seeking the joys of streaming without giving up too much privacy. Based on our research and the experts we’ve consulted, that advice is pretty solid, as Apple TVs offer significantly more privacy than other streaming hardware providers.

But how private are Apple TV boxes, really? Apple TVs don’t use automatic content recognition (ACR, a user-tracking technology leveraged by nearly all smart TVs and streaming devices), but could that change? And what about the software that Apple TV users do use—could those apps provide information about you to advertisers or Apple?

In this article, we’ll delve into what makes the Apple TV’s privacy stand out and examine whether users should expect the limited ads and enhanced privacy to last forever.

Apple TV boxes limit tracking out of the box

One of the simplest ways Apple TVs ensure better privacy is through their setup process, during which you can disable Siri, location tracking, and sending analytics data to Apple. During setup, users also receive several opportunities to review Apple’s data and privacy policies. Also off by default is the boxes’ ability to send voice input data to Apple.

Most other streaming devices require users to navigate through pages of settings to disable similar tracking capabilities, which most people are unlikely to do. Apple’s approach creates a line of defense against snooping, even for those unaware of how invasive smart devices can be.

Apple TVs running tvOS 14.5 and later also make third-party app tracking more difficult by requiring such apps to request permission before they can track users.

“If you choose Ask App Not to Track, the app developer can’t access the system advertising identifier (IDFA), which is often used to track,” Apple says. “The app is also not permitted to track your activity using other information that identifies you or your device, like your email address.”

Users can access the Apple TV settings and disable the ability of third-party apps to ask permission for tracking. However, Apple could further enhance privacy by enabling this setting by default.

The Apple TV also lets users control which apps can access the set-top box’s Bluetooth functionality, photos, music, and HomeKit data (if applicable), and the remote’s microphone.

“Apple’s primary business model isn’t dependent on selling targeted ads, so it has somewhat less incentive to harvest and monetize incredible amounts of your data,” said RJ Cross, director of the consumer privacy program at the Public Interest Research Group (PIRG). “I personally trust them more with my data than other tech companies.”

What if you share analytics data?

If you allow your Apple TV to share analytics data with Apple or app developers, that data won’t be personally identifiable, Apple says. Any collected personal data is “not logged at all, removed from reports before they’re sent to Apple, or protected by techniques, such as differential privacy,” Apple says.

Differential privacy, which injects noise into collected data, is one of the most common methods used for anonymizing data. In support documentation (PDF), Apple details its use of differential privacy:

The first step we take is to privatize the information using local differential privacy on the user’s device. The purpose of privatization is to assure that Apple’s servers don’t receive clear data. Device identifiers are removed from the data, and it is transmitted to Apple over an encrypted channel. The Apple analysis system ingests the differentially private contributions, dropping IP addresses and other metadata. The final stage is aggregation, where the privatized records are processed to compute the relevant statistics, and the aggregate statistics are then shared with relevant Apple teams. Both the ingestion and aggregation stages are performed in a restricted access environment so even the privatized data isn’t broadly accessible to Apple employees.

What if you use an Apple account with your Apple TV?

Another factor to consider is Apple’s privacy policy regarding Apple accounts, formerly Apple IDs.

Apple support documentation says you “need” an Apple account to use an Apple TV, but you can use the hardware without one. Still, it’s common for people to log into Apple accounts on their Apple TV boxes because it makes it easier to link with other Apple products. Another reason someone might link an Apple TV box with an Apple account is to use the Apple TV app, a common way to stream on Apple TV boxes.

So what type of data does Apple harvest from Apple accounts? According to its privacy policy, the company gathers usage data, such as “data about your activity on and use of” Apple offerings, including “app launches within our services…; browsing history; search history; [and] product interaction.”

Other types of data Apple may collect from Apple accounts include transaction information (Apple says this is “data about purchases of Apple products and services or transactions facilitated by Apple, including purchases on Apple platforms”), account information (“including email address, devices registered, account status, and age”), device information (including serial number and browser type), contact information (including physical address and phone number), and payment information (including bank details). None of that is surprising considering the type of data needed to make an Apple account work.

Many Apple TV users can expect Apple to gather more data from their Apple account usage on other devices, such as iPhones or Macs. However, if you use the same Apple account across multiple devices, Apple recognizes that all the data it has collected from, for example, your iPhone activity, also applies to you as an Apple TV user.

A potential workaround could be maintaining multiple Apple accounts. With an Apple account solely dedicated to your Apple TV box and Apple TV hardware and software tracking disabled as much as possible, Apple would have minimal data to ascribe to you as an Apple TV owner. You can also use your Apple TV box without an Apple account, but then you won’t be able to use the Apple TV app, one of the device’s key features.

Data collection via the Apple TV app

You can download third-party apps like Netflix and Hulu onto an Apple TV box, but most TV and movie watching on Apple TV boxes likely occurs via the Apple TV app. The app is necessary for watching content on the Apple TV+ streaming service, but it also drives usage by providing access to the libraries of many (but not all) popular streaming apps in one location. So understanding the Apple TV app’s privacy policy is critical to evaluating how private Apple TV activity truly is.

As expected, some of the data the app gathers is necessary for the software to work. That includes, according to the app’s privacy policy, “information about your purchases, downloads, activity in the Apple TV app, the content you watch, and where you watch it in the Apple TV app and in connected apps on any of your supported devices.” That all makes sense for ensuring that the app remembers things like which episode of Severance you’re on across devices.

Apple collects other data, though, that isn’t necessary for functionality. It says it gathers data on things like the “features you use (for example, Continue Watching or Library),” content pages you view, how you interact with notifications, and approximate location information (that Apple says doesn’t identify users) to help improve the app.

Additionally, Apple tracks the terms you search for within the app, per its policy:

We use Apple TV search data to improve models that power Apple TV. For example, aggregate Apple TV search queries are used to fine-tune the Apple TV search model.

This data usage is less intrusive than that of other streaming devices, which might track your activity and then sell that data to third-party advertisers. But some people may be hesitant about having any of their activities tracked to benefit a multi-trillion-dollar conglomerate.

Data collected from the Apple TV app used for ads

By default, the Apple TV app also tracks “what you watch, your purchases, subscriptions, downloads, browsing, and other activities in the Apple TV app” to make personalized content recommendations. Content recommendations aren’t ads in the traditional sense but instead provide a way for Apple to push you toward products by analyzing data it has on you.

You can disable the Apple TV app’s personalized recommendations, but it’s a little harder than you might expect since you can’t do it through the app. Instead, you need to go to the Apple TV settings and then select Apps > TV > Use Play History > Off.

The most privacy-conscious users may wish that personalized recommendations were off by default. Darío Maestro, senior legal fellow at the nonprofit Surveillance Technology Oversight Project (STOP), noted to Ars that even though Apple TV users can opt out of personalized content recommendations, “many will not realize they can.”

Apple can also use data it gathers on you from the Apple TV app to serve traditional ads. If you allow your Apple TV box to track your location, the Apple TV app can also track your location. That data can “be used to serve geographically relevant ads,” according to the Apple TV app privacy policy. Location tracking, however, is off by default on Apple TV boxes.

Apple’s tvOS doesn’t have integrated ads. For comparison, some TV OSes, like Roku OS and LG’s webOS, show ads on the OS’s home screen and/or when showing screensavers.

But data gathered from the Apple TV app can still help Apple’s advertising efforts. This can happen if you allow personalized ads in other Apple apps serving targeted apps, such as Apple News, the App Store, or Stocks. In such cases, Apple may apply data gathered from the Apple TV app, “including information about the movies and TV shows you purchase from Apple, to serve ads in those apps that are more relevant to you,” the Apple TV app privacy policy says.

Apple also provides third-party advertisers and strategic partners with “non-personal data” gathered from the Apple TV app:

We provide some non-personal data to our advertisers and strategic partners that work with Apple to provide our products and services, help Apple market to customers, and sell ads on Apple’s behalf to display on the App Store and Apple News and Stocks.

Apple also shares non-personal data from the Apple TV with third parties, such as content owners, so they can pay royalties, gauge how much people are watching their shows or movies, “and improve their associated products and services,” Apple says.

Apple’s policy notes:

For example, we may share non-personal data about your transactions, viewing activity, and region, as well as aggregated user demographics[,] such as age group and gender (which may be inferred from information such as your name and salutation in your Apple Account), to Apple TV strategic partners, such as content owners, so that they can measure the performance of their creative work [and] meet royalty and accounting requirements.

When reached for comment, an Apple spokesperson told Ars that Apple TV users can clear their play history from the app.

All that said, the Apple TV app still shares far less data with third parties than other streaming apps. Netflix, for example, says it discloses some personal information to advertising companies “in order to select Advertisements shown on Netflix, to facilitate interaction with Advertisements, and to measure and improve effectiveness of Advertisements.”

Warner Bros. Discovery says it discloses information about Max viewers “with advertisers, ad agencies, ad networks and platforms, and other companies to provide advertising to you based on your interests.” And Disney+ users have Nielsen tracking on by default.

What if you use Siri?

You can easily deactivate Siri when setting up an Apple TV. But those who opt to keep the voice assistant and the ability to control Apple TV with their voice take somewhat of a privacy hit.

According to the privacy policy accessible in Apple TV boxes’ settings, Apple boxes automatically send all Siri requests to Apple’s servers. If you opt into using Siri data to “Improve Siri and Dictation,” Apple will store your audio data. If you opt out, audio data won’t be stored, but per the policy:

In all cases, transcripts of your interactions will be sent to Apple to process your requests and may be stored by Apple.

Apple TV boxes also send audio and transcriptions of dictation input to Apple servers for processing. Apple says it doesn’t store the audio but may store transcriptions of the audio.

If you opt to “Improve Siri and Dictation,” Apple says your history of voice requests isn’t tied to your Apple account or email. But Apple is vague about how long it may store data related to voice input performed with the Apple TV if you choose this option.

The policy states:

Your request history, which includes transcripts and any related request data, is associated with a random identifier for up to six months and is not tied to your Apple Account or email address. After six months, you request history is disassociated from the random identifier and may be retained for up to two years. Apple may use this data to develop and improve Siri, Dictation, Search, and limited other language processing functionality in Apple products …

Apple may also review a subset of the transcripts of your interactions and this … may be kept beyond two years for the ongoing improvements of products and services.

Apple promises not to use Siri and voice data to build marketing profiles or sell them to third parties, but it hasn’t always adhered to that commitment. In January, Apple agreed to pay $95 million to settle a class-action lawsuit accusing Siri of recording private conversations and sharing them with third parties for targeted ads. In 2019, contractors reported hearing private conversations and recorded sex via Siri-gathered audio.

Outside of Apple, we’ve seen voice request data used questionably, including in criminal trials and by corporate employees. Siri and dictation data also represent additional ways a person’s Apple TV usage might be unexpectedly analyzed to fuel Apple’s business.

Automatic content recognition

Apple TVs aren’t preloaded with automatic content recognition (ACR), an Apple spokesperson confirmed to Ars, another plus for privacy advocates. But ACR is software, so Apple could technically add it to Apple TV boxes via a software update at some point.

Sherman Li, the founder of Enswers, the company that first put ACR in Samsung TVs, confirmed to Ars that it’s technically possible for Apple to add ACR to already-purchased Apple boxes. Years ago, Enswers retroactively added ACR to other types of streaming hardware, including Samsung and LG smart TVs. (Enswers was acquired by Gracenote, which Nielsen now owns.)

In general, though, there are challenges to adding ACR to hardware that people already own, Li explained:

Everyone believes, in theory, you can add ACR anywhere you want at any time because it’s software, but because of the way [hardware is] architected… the interplay between the chipsets, like the SoCs, and the firmware is different in a lot of situations.

Li pointed to numerous variables that could prevent ACR from being retroactively added to any type of streaming hardware, “including access to video frame buffers, audio streams, networking connectivity, security protocols, OSes, and app interface communication layers, especially at different levels of the stack in these devices, depending on the implementation.”

Due to the complexity of Apple TV boxes, Li suspects it would be difficult to add ACR to already-purchased Apple TVs. It would likely be simpler for Apple to release a new box with ACR if it ever decided to go down that route.

If Apple were to add ACR to old or new Apple TV boxes, the devices would be far less private, and the move would be highly unpopular and eliminate one of the Apple TV’s biggest draws.

However, Apple reportedly has a growing interest in advertising to streaming subscribers. The Apple TV+ streaming service doesn’t currently show commercials, but the company is rumored to be exploring a potential ad tier. The suspicions stem from a reported meeting between Apple and the United Kingdom’s ratings body, Barb, to discuss how it might track ads on Apple TV+, according to a July report from The Telegraph.

Since 2023, Apple has also hired several prominent names in advertising, including a former head of advertising at NBCUniversal and a new head of video ad sales. Further, Apple TV+ is one of the few streaming services to remain ad-free, and it’s reported to be losing Apple $1 billion per year since its launch.

One day soon, Apple may have much more reason to care about advertising in streaming and being able to track the activities of people who use its streaming offerings. That has implications for Apple TV box users.

“The more Apple creeps into the targeted ads space, the less I’ll trust them to uphold their privacy promises. You can imagine Apple TV being a natural progression for selling ads,” PIRG’s Cross said.

Somewhat ironically, Apple has marketed its approach to privacy as a positive for advertisers.

“Apple’s commitment to privacy and personal relevancy builds trust amongst readers, driving a willingness to engage with content and ads alike,” Apple’s advertising guide for buying ads on Apple News and Stocks reads.

The most private streaming gadget

It remains technologically possible for Apple to introduce intrusive tracking or ads to Apple TV boxes, but for now, the streaming devices are more private than the vast majority of alternatives, save for dumb TVs (which are incredibly hard to find these days). And if Apple follows its own policies, much of the data it gathers should be kept in-house.

However, those with strong privacy concerns should be aware that Apple does track certain tvOS activities, especially those that happen through Apple accounts, voice interaction, or the Apple TV app. And while most of Apple’s streaming hardware and software settings prioritize privacy by default, some advocates believe there’s room for improvement.

For example, STOP’s Maestro said:

Unlike in the [European Union], where the upcoming Data Act will set clearer rules on transfers of data generated by smart devices, the US has no real legislation governing what happens with your data once it reaches Apple’s servers. Users are left with little way to verify those privacy promises.

Maestro suggested that Apple could address these concerns by making it easier for people to conduct security research on smart device software. “Allowing the development of alternative or modified software that can evaluate privacy settings could also increase user trust and better uphold Apple’s public commitment to privacy,” Maestro said.

There are ways to limit the amount of data that advertisers can get from your Apple TV. But if you use the Apple TV app, Apple can use your activity to help make business decisions—and therefore money.

As you might expect from a device that connects to the Internet and lets you stream shows and movies, Apple TV boxes aren’t totally incapable of tracking you. But they’re still the best recommendation for streaming users seeking hardware with more privacy and fewer ads.

Photo of Scharon Harding

Scharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She’s been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK.

Breaking down why Apple TVs are privacy advocates’ go-to streaming device Read More »

discord-lures-users-to-click-on-ads-by-offering-them-new-orbs-currency

Discord lures users to click on ads by offering them new Orbs currency

Sellis also announced that Discord is working with brand measurement firm Kantar to help advertisers track ad success. With Kantar technology, advertisers can measure things like “awareness, recall, and intent,” Sellis said. The partnership further underscores Discord’s growing reliance on advertising revenue.

“Our partnership with Discord is helping marketers better understand Discord as an advertising platform for new generations,” Nicole Jones, Kantar’s chief commercial lead, said on Discord’s blog.

Rethinking ads

Discord also announced this week that it will soon sell Play Quests to more advertisers. The announcement follows the company’s introduction of video ads to the Discord mobile app in June. Video Quests, as they’re called, allow advertisers to show trailers, announcements, and other types of content.

Overall, Discord’s new ad-friendly approach to business is very different than its previous strategy, which kept Discord ad-free from its 2015 launch until last year. Because the company is expected to go public soon, its leaders have determined that it’s no longer sufficient to rely completely on premium add-ons and subscriptions. Discord isn’t profitable, forcing the firm to reconsider its use of ads, which cofounder and CEO Jason Citron felt were too intrusive as recently as 2021.

Currently, Discord’s ads are limited to clickable sidebars within the platform and offer direct benefits to users. Introducing ads can be a slippery slope, though, especially for social media companies that prioritize ad revenue to please investors. On the other hand, another social media company, Reddit, has seen success by boosting its ad business. Reddit went public in March 2024 and became profitable in October 2024 after reporting a 60 percent year-over-year increase in ad revenue. Reddit has hinted at plans to introduce new and more types of ads, and we can expect Discord to consider the same after its IPO, which a March Bloomberg report suggested could happen as soon as this year.

Advance Publications, which owns Ars Technica parent Condé Nast, is the largest shareholder in Reddit.

Discord lures users to click on ads by offering them new Orbs currency Read More »

roku-tech,-patents-prove-its-potential-for-delivering-“interruptive”-ads

Roku tech, patents prove its potential for delivering “interruptive” ads

Roku, owner of one of the most popular connected TV operating systems in the country, walks a fine line when it comes to advertising. Roku’s OS lives on low-priced smart TVs, streaming sticks, and projectors. To make up the losses from cheaply priced hardware, Roku is dependent on selling advertisements throughout its OS, including screensavers and its home screen.

That business model has pushed Roku to experiment with new ways of showing ads that test users’ tolerance. The company claims that it doesn’t want ads on its platform to be considered intrusive, but there are reasons to be skeptical about Roku’s pledge.

Non-“interruptive” ads

In an interview with The Verge this week, Jordan Rost, Roku’s head of ad marketing, emphasized that Roku tries to only deliver ads that don’t interrupt viewers.

“Advertisers want to be part of a good experience. They don’t want to be interruptive,” he told The Verge.

Rost noted that Roku is always testing new ad formats. Those tests include doing “all of our own A/B testing on the platform” and listening to customer feedback, he added.

“We’re constantly tweaking and trying to figure out what’s going to be helpful for the user experience,” Rost said.

For many streamers, however, ads and a better user experience are contradictory. In fact, for many, the simplest way to improve streaming is fewer ads and a more streamlined access to content. That’s why Apple TV boxes, which doesn’t have integrated ads and is good at combining content from multiple streaming subscriptions, is popular among Ars Technica staff and readers. An aversion to ads is also why millions pay extra for ad-free streaming subscriptions.

Roku tech, patents prove its potential for delivering “interruptive” ads Read More »

lg-tvs’-integrated-ads-get-more-personal-with-tech-that-analyzes-viewer-emotions

LG TVs’ integrated ads get more personal with tech that analyzes viewer emotions

With all this information, ZenVision will group LG TV viewers into highly specified market segments, such as “goal-driven achievers,” “social connectors,” or “emotionally engaged planners,” an LG spokesperson told StreamTV Insider. Zenapse’s website for ZenVision points to other potential market segments, including “digital adopters,” “wellness seekers,” “positive impact & environment,” and “money matters.”

Companies paying to advertise on LG TVs can then target viewers based on the ZenVision-specified market segments and deliver an “emotionally intelligent ad,” as Zenapse’s website puts it.

This type of targeted advertising aims to bring advertisers more in-depth information about TV viewers than demographic data or even contextual advertising (which shows ads based on what the viewer is watching) via psychographic data. Demographic data gives advertisers viewer information, like location, age, gender, ethnicity, marital status, and income. Psychographic data is supposed to go deeper and allow advertisers to target people based on so-called psychological factors, like personal beliefs, values, and attitudes. As Salesforce explains, “psychographic segmentation delves deeper into their psyche” than relying on demographic data.

“As viewers engage with content, ZenVision’s understanding of a consumer grows deeper, and our… segmentation continually evolves to optimize predictions,” the ZenVision website says.

Getting emotional

LG’s partnership comes as advertisers struggle to appeal to TV viewers’ emotions. Google, for example, attempted to tug at parents’ heartstrings with the now-infamous Dear Sydney ad aired during the 2024 Summer Olympics. Looking to push Gemini, Google hit all the wrong chords with parents, and, after much backlash, pulled the ad.

The partnership also comes as TV OS operators seek new ways to use smart TVs to grow their own advertising businesses and to get people to use TVs to buy stuff.

LG TVs’ integrated ads get more personal with tech that analyzes viewer emotions Read More »

netflix-plans-to-bring-streaming-into-the-$1-trillion-club-by-2030

Netflix plans to bring streaming into the $1 trillion club by 2030

Netflix doesn’t plan to disclose subscriber counts anymore, but one of WSJ’s anonymous sources said that the streaming leader wants to have 410 million subscribers by 2030. That would require Netflix to add 108.4 million more subscribers than it reported at the end of 2024, or about 21.7 million per year, and expand its global reach. In 2024, Netflix added 41.36 million subscribers, including a record number of new subscribers in Q4 2024.

Netflix plans to release its Q1 2025 earnings report on April 17.

$1 trillion club hopeful

Should Netflix achieve its reported goals, it would be the first to join the $1 trillion club solely through streaming-related business. The club is currently populated mostly by tech brands, including two companies that own Netflix rivals: Apple and Amazon.

Netflix is, by far, the most likely streaming candidate to potentially enter the lucrative club. It’s currently beating all other video-streaming providers, including Amazon Prime Video and Disney+, in terms of revenue and profits. Some streaming businesses, including Apple TV+ and Peacock, still aren’t profitable yet.

Netflix’s reported striving for a $1 trillion market cap exemplifies the meteoric rise of streaming since Netflix launched its streaming service in 2007. As linear TV keeps shrinking, and streaming companies continue learning how to mimic the ads, live TV, and content strategies of their predecessors, the door is open for streaming firms to evolve into some of the world’s most highly valued media entities.

The potential for Netflix to have a trillion-dollar market cap also has notable implications for rivals Apple and Amazon, which both earned membership into the $1 trillion club without their streaming services.

Whether Netflix will reach the goals reported by WSJ is not guaranteed, but it will be interesting to watch how Netflix’s strategy for reaching that lofty goal affects subscribers. Further, with streaming set to be more central to the viewing of TV shows, movies, and live events by 2030, efforts around things like ads, pricing, and content libraries could impact media consumption as we head toward 2030.

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“Awful”: Roku tests autoplaying ads loading before the home screen

Owners of smart TVs and streaming sticks running Roku OS are already subject to video advertisements on the home screen. Now, Roku is testing what it might look like if it took things a step further and forced people to watch a video ad play before getting to the Roku OS home screen.

Reports of Roku customers seeing video ads automatically play before they could view the OS’ home screen started appearing online this week. A Reddit user, for example, posted yesterday: “I just turned on my Roku and got an … ad for a movie, before I got to the regular Roku home screen.” Multiple apparent users reported seeing an ad for the movie Moana 2. The ads have a close option, but some users appear to have not seen it.

When reached for comment, a Roku spokesperson shared a company statement that confirms that the autoplaying ads are expected behavior but not a permanent part of Roku OS currently. Instead, Roku claimed, it was just trying the ad capability out.

Roku’s representative said that Roku’s business “has and will always require continuous testing and innovation across design, navigation, content, and our first-rate advertising products,” adding:

Our recent test is just the latest example, as we explore new ways to showcase brands and programming while still providing a delightful and simple user experience.

Roku didn’t respond to requests for comment on whether it has plans to make autoplaying ads permanent on Roku OS, which devices are affected, why Roku decided to use autoplaying ads, or customer backlash.

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Sonos’ streaming box is reportedly canceled. Good riddance.


Opinion: The long-rumored Sonos streaming box wasn’t a good idea anyway.

Sonos has canceled plans to release a streaming box, The Verge reported today. The audio company never publicly confirmed that it was making a streaming set-top box, but rumors of its impending release have been floating around since November 2023. With everything that both Sonos and streaming users have going on right now, though, a Sonos-branded rival to the Apple TV 4K wasn’t a good idea anyway.

Bloomberg’s Mark Gurman was the first to report on Sonos’ purported streaming ambitions. He reported that Sonos’ device would be a black box that cost $150 to $200.

At first glance, it seemed like a reasonable idea. Sonos was facing increased competition for wireless speakers from big names like Apple and Bose. Meanwhile, Sonos speaker sales growth had slowed down, making portfolio diversification seem like a prudent way to protect business.

By 2025, however, the reported plans for Sonos’ streaming box sounded less reasonable and appealing, while the market for streaming devices had become significantly more competitive.

A saturated market

In February, The Verge, citing anonymous sources, reported that Sonos was now planning a streaming player that would “cost between $200 and $400.” That’s a lot to charge in a market where most people have already found their preferred platform. Those who want something cheap and don’t mind ads settle for something like Roku. People who hate ads opt for an Apple TV box. There are people who swear by their Fire Sticks and plenty who are happy with whatever operating system (OS) their smart TV arrives with. Sonos would have struggled to convince people who have successfully used some of those streaming devices for years that they suddenly need a new one that’s costlier than alternatives, including some smart TVs. In the US especially, the TV OS market is considered heavily saturated, presenting an uphill battle for newcomers.

Without Sonos ever confirming its streaming device, it’s hard to judge what the company would have offered to lure people to a new streaming platform. Perhaps the Sonos box could have worked better with Sonos devices than non-Sonos streaming devices. But vendor lock-in isn’t the best way to try to win new customers. That approach would also force Sonos to test if it has accrued the same type of customer loyalty as a company like Apple. Much of the goodwill needed for such customer loyalty was blatantly obliterated during Sonos’ botched app update last year.

According to The Verge, Sonos’ box didn’t even have a standout appearance. The publication said that by February 2025, the box was “deep into development,” and “about as nondescript as streaming hardware gets.”

“Viewed from the top, the device is a flattened black square and slightly thicker than a deck of trading cards,” The Verge reported at the time, citing images it reviewed.

Among the most appealing planned features was unified content from various streaming apps, like Netflix and Max, with “universal search across streaming accounts.” With the growing number of streaming services required to watch all your favorite content, this would be a good way to attract streamers but not necessarily a unique one. The ability to offer a more unified streaming experience is already being tackled by various smart TV OSes, including Samsung Tizen and Amazon Fire OS, as well as the Apple TV app and sister streaming services, like Disney+ and Hulu.

A potentially ad-riddled OS

There’s reason to suspect that the software that Sonos’ streaming box would have come out with would have been ad-coddling, user-tracking garbage.

In January, Janko Roettgers reported that ad giant The Trade Desk was supplying Sonos with its “core smart TV OS and facilitating deals with app publishers,” while Sonos worked on the streaming box’s hardware and user interface. The Trade Desk makes one of the world’s biggest demand-side platforms and hasn’t made streaming software or hardware before.

Sonos opting for The Trade Desk’s OS would have represented a boastful commitment to advertisers. Among the features that The Trade Desk markets its TV OS as having are a “cleaner supply chain for streaming TV advertising” and “cross-platform content discovery,” something that Sonos was reportedly targeting for its streaming hardware.

When reached for comment, a Sonos spokesperson confirmed that Sonos was working with The Trade Desk, saying: “We don’t comment on our roadmap, but as has been previously announced we have a long-standing relationship with The Trade Desk and that relationship continues.”

Sonos should take a moment to regroup

It’s also arguable that Sonos has much more important things to do than try to convince people that they need expensive, iterative improvements to their streaming software and hardware. Sonos’ bigger focus should be on convincing customers that it can still handle its bread and butter, which is audio devices.

In November 2023, when word first dropped about Sonos’ reported streaming plans, there was no doubt that Sonos understood how to make quality speakers. But last year, Sonos tarnished its reputation by rushing an app update to coincide with its first wireless headphones, the Sonos Ace. The app’s launch will go down as one of the biggest app failures in history. Sonos employees would go on to say that Sonos rushed the update with insufficient testing, resulting in Sonos device owners suddenly losing key features, like accessibility capabilities and the abilities to edit song queues and playlists and access local music libraries. Owners of older Sonos devices, aka long-time Sonos customers, were the most affected. Amid the fallout, hundreds of people were laid off, Sonos’ market value dropped by $600 million, and the company pegged initial remediation costs at $20 million to $30 million.

At this point, Sonos’ best hope at recovering losses is restoring the customer trust and brand reputation that it took years to build and months to deplete.

Sonos could also use time to recover and distill lessons from its most recent attempt at entering a new device category. Likely due to the app controversy associated with the cans, the Ace hasn’t been meeting sales expectations, per a February report from The Verge citing anonymous sources. If Sonos should learn anything from the Ace, it’s that breaking into a new field requires time, patience, and incredible attention to detail, including how long-time and incoming customers want to use their gear.

Of course, financial blowback from the app debacle could be more directly behind why Sonos isn’t releasing a streaming box. Additionally, Sonos saw numerous executive changes following the app fiasco, including the departure of the CEO who greenlit the streaming box, Patrick Spence. New executive leaders, including a new chief product officer and chief marketing officer, could have different views on the value of Sonos to enter the streaming market, too.

Sonos’ spokesperson didn’t answer Ars’ questions about Sonos’ reported plans to cancel the streaming box and whether the decision is related to the company’s app woes.

Sonos may have dodged a bullet

Ultimately, it didn’t sound like Sonos’ streaming box had the greatest potential to disrupt other TV streaming platforms already settled into people’s homes. It’s possible Sonos had other products that weren’t leaked. But the company would have had to come up with a unique and helpful feature in order to command a high price and compete with the likes of Apple’s TV 4K set-top box.

Even if Sonos came up with some killer feature or app for its streaming box, people are a lot less likely to gamble on a new product from the company now than they were before 2024’s app catastrophe. Sonos should prove that it can handle the basics before attempting to upcharge technologists for new streaming hardware.

Sonos’ streaming ambitions may only be off the table “for now,” new CEO Tom Conrad reportedly told employees today, per The Verge. But it’s probably best that Sonos focus its attention elsewhere for a while.

Photo of Scharon Harding

Scharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She’s been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK.

Sonos’ streaming box is reportedly canceled. Good riddance. Read More »

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Commercials are still too loud, say “thousands” of recent FCC complaints

Streaming ads could get muzzled, too

As you may have noticed—either through the text of this article or your own ears—The Calm Act doesn’t apply to streaming services. And because The Calm Act doesn’t affect commercials viewed on the Internet, online services providing access to broadcast channels, like YouTube TV and Sling, don’t have to follow the rules. This is despite such services distributing the same content as linear TV providers.

For years, this made sense. The majority of TV viewing occurred through broadcast, cable, or satellite access. Further, services like Netflix and Amazon Prime Video used to be considered safe havens from constant advertisements. But today, streaming services are more popular than ever and have grown to love ads, which have become critical to most platforms’ business models. Further, many streaming services are airing more live events. These events, like sports games, show commercials to all subscribers, even those with a so-called “ad-free” subscription.

Separate from the Calm Act violation complaints, the FCC noted this month that other recent complaints it has seen illustrate “growing concern with the loudness of commercials on streaming services and other online platforms.” If the FCC decides to apply Calm Act rules to the web, it would need to create new methods for ensuring compliance, it said.

TV viewing trends by platform bar graph by Nielsen.

Nielsen’s most recent data on how people watch TV. Credit: Nielsen

The FCC didn’t specify what’s behind the spike in consumers’ commercial complaints. Perhaps with declining audiences, traditional TV providers thought it would be less likely for anyone to notice and formally complain about Ozempic ads shouting at them. Twelve years have passed since the rules took effect, so it’s also possible that organizations are getting lackadaisical about ensuring compliance or have dwindling resources.

With Americans spending similar amounts of time—if not longer—watching TV online versus via broadcast, cable, and satellite, The Calm Act would have to take on the web in order to maximize effectiveness. The streaming industry is young, though, and operates differently than linear TV distribution, presenting new regulation challenges.

Commercials are still too loud, say “thousands” of recent FCC complaints Read More »