No need to be a Wall-Street veteran to analyze the performance of OTT companies. The current situation is that Netflix is struggling with the studios about content costs making it very difficult to maintain high margins as the studios raise prices time after time. Hulu, the super-group of the content business is not profitable, and not to mention YouTube which still loses hundreds of millions. And still, everyone is trying to jump on the bandwagon.
The inevitable question is why we see such a gold-rush when there are no evidence for gold?
General Patton said once “If everyone is thinking alike, then somebody isn’t thinking.”, is that the case? As of now, it sure is.
There is one solution which addresses the biggest challenge of online video ads – how to gain more CPM per ad, or in other words how to earn more money : it is called Real-Time Bidding or RTB.