Question 1

What is ARPU in streaming?

Accepted Answer

ARPU stands for Average Revenue Per User — a metric streaming platforms use to measure how much money each subscriber contributes to the bottom line. Rather than chasing new sign-ups, platforms like Netflix now focus on increasing ARPU by pushing users into higher-priced ad-free tiers or keeping them on lower-cost plans supported by targeted advertising. Both approaches improve profitability without requiring a single new subscriber.

Question 2

What is Connected TV (CTV) advertising?

Accepted Answer

Connected TV, or CTV, refers to television content watched through an internet-connected device rather than a traditional cable box — think smart TVs, streaming sticks, or games consoles. CTV advertising is one of the fastest-growing segments of digital advertising, and as streaming platforms expand their ad-supported tiers, the volume of CTV ad inventory grows significantly, creating more opportunity for the ad-tech companies that manage and sell that inventory.

Question 3

What is programmatic advertising?

Accepted Answer

Programmatic advertising is the automated buying and selling of digital ad space using software platforms. Instead of manual negotiations, advertisers use technology to bid for and purchase ad slots in real time. As streaming platforms generate more ad-supported inventory, programmatic platforms become essential infrastructure — handling the pricing, targeting, and delivery of every advert viewers see on their screens.

Question 4

Is investing in streaming stocks a good idea right now?

Accepted Answer

The streaming industry is shifting from subscriber growth to profitability-focused monetisation, which could improve the financial outlook for major platforms without needing to add new users. Amazon's near-70% price hike on its ad-free Prime Video tier signals that the industry has matured enough for platforms to use pricing power. However, risks remain — including potential subscriber cancellations, competitive pressure, and ad-spend volatility during economic downturns.

Question 5

What are the risks of investing in ad-tech stocks?

Accepted Answer

Ad-tech companies like Trade Desk can be highly sensitive to economic cycles — advertising budgets are often among the first to be cut during downturns, which can cause sharp drops in revenue. Additionally, increasing regulatory scrutiny around data privacy in digital advertising could limit how effectively platforms target viewers. Nemo's research on this theme acknowledges these risks openly, and as with all investing, there is a genuine possibility of loss.

Question 6

How do Netflix and Spotify fit into an ad-tech investment theme?

Accepted Answer

Netflix (NFLX) and Spotify (SPOT) are the content platforms generating the advertising inventory that ad-tech companies then manage and monetise. Netflix has moved into ad-supported tiers and premium pricing, whilst Spotify has run a dual free-and-premium model for years. Their growing ad-supported user bases directly expand the digital ad inventory that programmatic platforms like Trade Desk are built to serve, linking both sides of the theme together.

Question 7

What does Trade Desk (TTD) actually do?

Accepted Answer

Trade Desk is a leading programmatic advertising platform that helps advertisers buy digital ad space efficiently and at scale. As streaming services generate more ad inventory through ad-supported tiers, advertisers need platforms like Trade Desk to access and purchase that inventory in real time. The growth of CTV advertising is a direct tailwind for its business, making it what Nemo's research describes as the key infrastructure play within this investment theme.

Question 8

Why did Amazon raising Prime Video prices matter for investors?

Accepted Answer

Amazon's decision to raise the price of its ad-free Prime Video tier by nearly 70% was a signal that the entire streaming industry had reached sufficient maturity to absorb price increases. It marked a clear industry-wide shift away from cheap subscriptions designed to win market share, towards using pricing power to improve margins. For investors, this signals that streaming platforms could significantly improve their revenue outlook without needing subscriber growth.

Question 9

Is the streaming profit pivot a short-term trend or a structural shift?

Accepted Answer

According to Nemo's analysis, this is a structural shift rather than a short-term trade. Streaming platforms spent years investing heavily in content and user acquisition, and the industry has now reached the point where those investments need to generate returns. The move towards profitability-focused monetisation has been building for some time, with Amazon's pricing move acting as a catalyst rather than the cause. The transition is expected to be gradual and non-linear.

Question 10

What growth drivers are behind the rise of streaming ad-supported tiers?

Accepted Answer

The key driver is the industry-wide shift from subscriber-led growth to revenue-per-user monetisation. As platforms compete on margin rather than sign-ups, ad-supported tiers offer a way to keep prices low for cost-sensitive users whilst still generating advertising revenue. This expands CTV ad inventory, draws in more digital advertising budgets, and creates a structural tailwind for the ad-tech companies supplying the underlying infrastructure.

Question 11

How can I invest in streaming and ad-tech stocks on Nemo?

Accepted Answer

Nemo offers a curated thematic portfolio — called a Neme — built around the streaming profitability and ad-tech infrastructure opportunity. You can access it on Nemo's ADGM-regulated platform, which offers commission-free trading, AI-powered research tools, and fractional shares starting from just $1. This makes it straightforward to invest in themes like this one whether you are a beginner or building out a broader portfolio. All investments carry risk and you may lose money.

Question 12

Can I invest in Netflix, Spotify, and Trade Desk with a small amount of money?

Accepted Answer

Yes — through Nemo's fractional shares feature, you can invest in companies like Netflix (NFLX), Spotify (SPOT), and Trade Desk (TTD) starting from as little as $1. This removes the barrier of needing to buy a full share, making thematic investing accessible regardless of your starting budget. Nemo is regulated by the ADGM and offers commission-free trading, so more of your money goes directly into your investments.

Streaming's Profit Pivot: Why Ad-Tech Is the Real Winner

Streaming's Profit Pivot: Why Ad-Tech Is the Real Winner

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Summary

Streaming's Quiet Pivot: Why the Ad-Tech Plumbing Might Just Pay Off

From Headcounts to Bottom Lines

The Era of Digital Plumbing

Mind the Gap

Deep Dive

Market & Opportunity

Key Companies

Primary Risk Factors

Growth Catalysts

How to invest in this opportunity

Frequently Asked Questions

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