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Is Virtual Product Placement Coming? ‘NCIS’, ‘Friends’ And ‘Criminal Minds’ Could Help Entertainment Firms Pocket $6.6BN Annual Revenue, Report Claims
19.12.2022 - 17:13 / deadline.com
EXCLUSIVE: Virtual product placement (VPP) could be set to become big business for entertainment companies — and it’s the golden oldies that are going to drive it.
That’s according to a new report from insights firm Radicale sponsored by VPP firm Ryff, which estimates the total opportunity to make addressable revenues from feature films and TV series libraries in the U.S. is $6.6BN, with legacy titles like NCIS and Friends the best suited for exploitation.
In practice, VPP sees paid-for products and brands placed into shots in post production — effectively an alternative to traditional advertising, but despite having been around for a while now hasn’t yet really taken off.
Should that change, Paramount, Warner Bros Discovery, Disney, NBCUniversal and Netflix could be among the biggest winners, Radicale’s research claims. Collectively, the five companies could make an estimated $1.48BN a year.
CBS owner Paramount is estimated to likely make the most ($412M), followed by WBD ($323M), Disney ($320M) and NBCU ($300M), with Netflix the lowest benefactor ($127M). For Disney and Netflix, these figures are around 30% and 10% of the total ad revenues, respectively.
The $6.6BN figure is derived from existing content libraries estimates in a PQ Media report from this year.
Radicale’s research suggests genres such as sitcoms and procedurals are better suited to include VPP integration than sci-fi and fantasy. Paramount’s deep library of cop shows comes in handy here, and the report pointed to NCIS as potentially the most profitable show.
The CBS drama’s 440 episodes to date provide a revenue opportunity of $23.1M, while CSI: Miami is worth $11.6M and NCIS progenitor JAG $11.4M. WBD’s sitcoms Friends ($11.8M) and The Big Bang
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