Dive Brief:

• Ad spending continued its shift away from linear TV to streaming during this year’s upfront ad-buying season, but, thanks in part to the growth of free ad-supported streaming services (FASTs), buyers managed to improve costs, per a new report from Media Dynamics.
• Linear TV’s total prime-time ad sales amounted to $17.8 billion, down 3.2% from last year’s $18.4 billion, according to MDI’s estimates. Streaming, meanwhile, took in $13.2 billion during the latest upfronts, up nearly 18% over last year.
• Ad buyers’ cost per thousand impressions (CPM) declined broadly, largely due to more streaming inventory. On broadcast and cable, the CPM for prime-time 30-second messages and adult viewers was $43.50 and $19.35, respectively (down 4.1% and 6.8%, respectively). For streaming, the average CPM was $27.25, down 7.6% from last year.

Dive Insight:

Prime-time TV is no longer the powerhouse it once was. MDI’s report shows how much viewers have taken control of the experience and lured the ad dollars away with them. Since the 2023-24 upfronts, linear TV prime-time ad sales have dropped by $1.2 billion, while streaming ad sales have increased by $5 billion, per MDI’s estimates.

Linear TV’s $17.8 billion in prime-time upfront sales for this year break down as $9.1 billion for broadcast (down 2.5% from last year) and $8.7 billion for cable (down 4.3%), per MDI. Those declines were mitigated as several networks offered sports packages that are prorated to account for portions that take place in prime-time, according to MDI. In addition, some networks benefited from having several sports events. NBC, for instance, will broadcast the Winter Olympics, the Super Bowl and recently closed a new NBA broadcast deal that will put games on prime-time two nights a week. Fox also had a significant amount of live sports inventory on the table, including the 2026 World Cup.

Though streaming platforms have more viewing flexibility and are therefore not as dependent on locking in the ad dollars early, they are still making cases for upfront deals. Netflix, for instance, recently announced it doubled its overall commitments during this year’s upfront season with year-over-year growth in categories including retail, CPG, telecom and tech. The company’s upcoming slate of original programming, along with its live sports, including WWE Raw and two NFL games on Christmas Day were particular draws for advertiser interest, said Amy Reinhard, the company’s president of advertising, in a blog post.

Still, streaming services are beginning to feel some pressure. The growing popularity of FASTs, coupled with increased supply from ad-supported tiers from the premium providers, has become an advantage for buyers, who have continued to reduce their CPMs. Though, as MDI noted, this year’s 7.6% decline was nowhere near as significant as the 17.6% drop that occurred between 2023 and 2024.