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Netflix’s Bid for Warner Bros Discovery Aims to Cut Streaming Costs and Reshape the Industry 
Warner Bros. Discovery has teamed up with a startup company, VideoAmp, for an audience measurement deal. This global media and entertainment firm announced on Tuesday, Jan. 3, that it signed an agreement with Nielsen’s rival as an alternative means of data for advertisers.
As per CNBC, this is an important deal for VideoAmp since it is still considered a startup company in the field of advertising measurement. It is still growing its list of clients; thus, securing a deal with a major brand is a good start for this year.
Warner Bros. Discovery and VideoAmp’s collaboration was also signed at perfect timing because this is the period when TV networks secure long-term contracts from advertisers. Moreover, the former also owns and operates a number of traditional TV networks and streaming services which means more business for the ad measurement platform.
Then again, it was mentioned that while Nielsen is apparently a rival of VideoAmp since they provide the same services, Warner Bros. Discovery will be working with both companies. As it requires another data set to provide to advertisers at this period when media and entertainment firms are looking for a Nielsen alternative, the company decided to use both firms that specialize in audience measurements.
Both Nielsen and VideoAmp offer audience data and estimates that TV networks and streaming operators use to sell slots for advertising commercials. The former has been providing TV ratings and viewership for decades but its metrics came under scrutiny during the pandemic, with many groups criticizing the inaccuracies and irregularities in its measurement.
In 2020, Nielsen divulged undercounting issues, and for this, the Media Rating Council removed its accreditation and remained suspended to this day. But despite these problems, it is still the leading audience measurement company that is still working with major media companies.
“Traditional media measurement has not kept pace with how consumers are engaging with streaming and linear content,” Warner Bros. Discovery’s executive vice president and head of ad sales research, measurement and insights, Andrea Zapata, said in a press release.
She added, “We are gaining momentum as we act on our goals to offer best-in-class measurement capabilities and provide greater visibility into the return on ad spend across our award-winning IP.”
VideoAmp’s founder and CEO, Ross McCray, said they are excited as “Warner Bros. Discovery is creating a more sophisticated marketplace and we’re looking forward to unlocking value for them and the industry as a whole.”
