Activate Consulting founder and CEO Michael Wolf joins Asking for a Trend to discuss the state of ad spending in the media industry as it shifts from linear to streaming.

Wolf notes that streaming services "started off with you paying a monthly fee with no ads, and then they've been able to make it cheaper with ads." He continues, "a lot of people think, well, they've made it cheaper. And actually, they're making more money for those tiers that have ads. And so we're forecasting for, by the time we get to the end of this year, there'll be roughly $6 billion of advertising on these streaming services. And I'm talking about Disney (DIS) and Hulu and Netflix (NFLX). And within three years, it's going to be $15 billion."

He believes that moving forward, ad tiers will end up being bigger than non-ad tiers because they are a better deal for consumers and it is ultimately more profitable for streaming companies.

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This post was written by Melanie Riehl