Streaming Advertising Prices Drop Amid Growing Supply: 2026 Market Analysis

In the second quarter of 2026, streaming platforms faced a paradox: advertising inventory volume grew at double-digit rates, but average cost per impression declined. Disney+ recorded a 4% drop in ad rates despite an 8% increase in impressions, while Roku presented an even more striking picture—a 40% surge in impressions accompanied by a 12% fall in cost per impression. The gap between supply and demand growth signals a structural reshuffling of the digital video advertising market that is changing the rules for advertisers.

Streaming outpaces linear TV, but loses ground in price

Quarterly earnings reports from major media companies in Q2 2026 reveal a consistent trend: streaming's share of total ad revenue is growing, but absolute gains fail to offset traditional television's decline. At Disney, the entertainment segment (Disney+ and Hulu) generated over half of ad revenue for the first time—more than $800 mln of the total $1.6 bln. The company's sports segment, which includes ESPN, added another $1.2 bln, with streaming accounting for an estimated 30–35%—Disney doesn't disclose exact figures, but identical ad breaks on linear TV and streaming broadcasts allow for this assessment.

Paramount Global demonstrates similar dynamics with less optimistic proportions: streaming increased its share of total ad revenue from 23% a year ago to 27% in the current quarter. The problem is that streaming ad growth came to 8% year-over-year, while linear TV fell 14%—the overall balance is negative. Warner Bros. Discovery saw streaming's share rise from 13% to 18%, but streaming ads grew only 9% while linear TV collapsed 27%—largely due to losing NBA playoff broadcast rights.

Why advertisers aren't rushing to increase budgets

Disney stated directly in a shareholder letter dated August 5, 2026, that there was a "weaker-than-expected advertising environment, particularly in the subscription video on demand segment." The phrasing is key: the company isn't simply describing seasonal summer weakness when audiences travel and the sports calendar is thin—Disney is confirming that actual demand turned out lower than already downward-revised forecasts.

Disney CFO Hugh Johnston explained the situation on an earnings call: "The market is healthy in sports, which plays to our strengths heading into the fall season, but it's competitive in streaming due to supply growth. This supply creates pricing pressure for us and other players, which has impacted the pace of ad growth in SVOD." Inventory growth is outpacing demand growth—a classic scenario where buyers gain leverage to negotiate discounts.

Fox CEO Lachlan Murdoch noted on a similar investor call that "there's a lot of new inventory appearing in the CTV market." Meanwhile, Fox-owned free streaming service Tubi boosted ad revenue 35% for the quarter, and Murdoch emphasized: "Other platforms are forced to cut prices to maintain volumes; Tubi didn't have to do that." The reason is straightforward—free services inherently offer ads at lower rates than subscription platforms with ad tiers (Disney+, Netflix, HBO Max, Paramount+), and amid excess cheap supply, this becomes a competitive advantage.

What streaming ad deflation means for brands

The current market conditions create a window of opportunity for advertisers willing to work with streaming formats. Declining CPM with maintained audience quality is essentially a limited-time clearance of premium inventory. However, only those capable of properly measuring video ad effectiveness in a digital environment and swiftly reallocating budgets can capitalize on this situation.

A 40% increase in inventory paired with a 12% price drop isn't a market crisis—it's a signal to revisit media plans in favor of streaming.

For the Russian market, this dynamic is particularly relevant given the growth of proprietary streaming platforms and expanding ad capabilities on Yandex, VK Video, KION, and other services. The mechanics are the same: platforms are scaling audience and targeting capabilities faster than advertisers can master new formats and analytics tools. Brands that now invest in building programmatic video buying expertise and connecting CTV data with CRM systems will gain an edge in price negotiations and audience access.

Practical algorithm for revising video budgets

Declining inventory costs demand a systematic approach to reallocating media budgets. For brand marketers working with video advertising, it makes sense to follow this sequence:

• Request detailed CPM breakdowns by channel for the past three quarters from your current vendors—compare price trends across linear TV and streaming.
• Run a pilot campaign reallocating 15–20% of budget from traditional TV to streaming platforms, tracking KPIs for reach, frequency, and conversion events.
• Set up end-to-end analytics connecting streaming impressions to website or app actions—without this, you can't properly compare channel effectiveness.
• Agree with your agency on programmatic buying terms with viewability guarantees no lower than 70% and real-time optimization capabilities.
• Rethink your creative strategy: streaming formats allow longer videos and interactive elements—use this to deepen your message.
• Build flexibility into your media plan: the ability to reallocate up to 30% of budget across channels within a quarter based on interim results.

It's critical not to simply pour money into a cheaper channel, but to establish a measurement system showing real returns across all funnel stages—from impression to purchase.

Platform response: free tiers as a new strategy

It's no coincidence that Disney and Netflix executives mentioned considering fully free ad-supported tiers during July earnings calls—modeled on Tubi. This is an acknowledgment that subscription services with ad tiers lack the pricing flexibility of pure AVOD platforms (advertising video on demand). Free access removes barriers for audiences and generates more inventory for ad monetization, which under current oversupply can stabilize revenue.

Fox-owned Tubi exemplifies this strategy: 110 million monthly active users and 35% ad revenue growth—without cutting rates. Paramount+ with 81.6 mln paid subscribers grows more slowly in its advertising segment despite what seems like a more exclusive, premium audience. The takeaway: in the current market phase, scale of free audiences outweighs premium paid tiers.

Frequently asked questions

Why is streaming ad pricing falling as audience grows?

Prices decline due to excessive supply growth: platforms are expanding advertising inventory faster than advertisers are increasing their streaming budgets. Roku increased impressions 40% for the quarter, but brand demand grew less, leading to a 12% drop in average cost per impression. This is a classic supply-outpacing-demand situation.

Is it worthwhile for brands to invest in streaming ads now?

Yes, the current moment favors increasing streaming's share in the media mix: prices are falling while audience quality and targeting remain strong. However, realizing gains requires a properly configured measurement system—without connecting impressions to conversions, you can't accurately assess returns. We recommend starting with a test reallocation of 15–20% of video budget to streaming while tracking key KPIs.

How long will the period of low streaming ad prices last?

Disney forecasts a "weaker advertising environment" through the current quarter, suggesting this condition persists through at least late September 2026. Future dynamics depend on the fall sports season (NFL, soccer) and advertiser willingness to increase streaming budgets. Historically, demand recovers by Q4, but structural inventory imbalance could persist over a longer horizon.