‘NCIS,’ ‘Friends,’ others could be worth $6.6 billion in VPP, report says – Deadline

exclusive: virtual product placement (VPP) could be big business for entertainment companies — and it’s oldies driving it.

That’s according to a new report from insights firm Radicale, sponsored by VPP firm Ryff, which estimates the total addressable revenue opportunity in the U.S. from the feature film and television library at $6.6 billion, including titles such as NCIS with friends Best for exploitation.

In practice, VPP puts paid products and brands in a post-production lens — effectively an alternative to traditional advertising, but one that hasn’t really taken off yet, despite having been around for a while.

If that changes, Paramount, Warner Bros. Discovery Channel, Disney, NBC Universal and Netflix could be the biggest winners, according to Radicale’s research. Combined, the five companies make an estimated $1.48 billion a year.

According to estimates, CBS owner Paramount is likely to earn the most ($412 million), followed by WBD ($323 million), Disney ($320 million) and NBCU ($300 million), with Netflix contributing the least ($127 million). Dollar). For Disney and Netflix, those numbers represent roughly 30% and 10% of total ad revenue, respectively.

The $6.6 billion figure comes from an estimate of the existing content library in this year’s PQ Media report.

Radicale’s research shows that genres such as sitcoms and procedurals are better candidates for VPP integration than sci-fi and fantasy.Paramount’s deep database of cop movies comes in handy here, report states NCIS As the most profitable show possible.

The CBS drama’s 440 episodes to date offer a $23.1 million revenue opportunity, while CSI: Miami Worth $11.6 million NCIS ancestor I $11.4 million. WBD sitcoms friends ($11.8 million) and big bang theory ($8.4 million), Disney criminal minds ($9.7 million) and desperate housewives ($9 million) and NBCU great chicago fire ($12 million), blacklist ($10.9 million) and office (9.4M) also has good prospects.

prudent approach

Regardless of the revenue potential, product placement is always a delicate business given the sensibilities of your audience. US media giants have taken a cautious approach to VPP, with reports pointing out that Netflix has so far largely avoided paid product placement in its programming, Peacock has only recently added “scenario advertising” technology, and Prime Video has relaunched a beta version of VPP May allow signage and billboards to be inserted during post-production.

Radicale also estimates that the US live sports market could be worth $7 billion in VPPs, using a “conservative assumption” that VPPs make the estimated total value ($24.2 billion) spent by large companies on sports rights about 20% higher .

The combined potential value of the four major U.S. sports — the NFL, NBA, MLB and NHL — is $3.2 billion, while the English Premier League is worth $860 million and Formula One football is worth between $1.5 billion and $1.8 billion.

The report suggests that technology-based companies such as Amazon and Apple will be poised to leverage VPP and customer data sets to capitalize on their sports rights.

Next year we’ll see if VPP becomes a meaningful part of media companies’ business plans, or if it’s a false dawn.