Streaming services have become a massive part of how people watch television, but the business model behind them often stays out of the spotlight. Many viewers assume these platforms make money mostly from monthly subscriptions, but advertising has become an increasingly important revenue stream. Understanding how streaming companies monetize through ads provides useful context for looking at companies like Nexxen International Ltd. (NASDAQ: NEXN) and their recent business moves.
Connected TV, commonly called CTV, refers to television content streamed to internet connected devices like Smart TVs, Roku, Amazon Fire TV, and gaming consoles. This is different from traditional cable or broadcast television. When advertisers want to reach CTV viewers, they cannot simply buy time on a specific channel. Instead, they use programmatic advertising, which is an automated system for buying and selling ad space in real time.
The programmatic advertising ecosystem relies on two key platforms. A Demand Side Platform, or DSP, is software that advertisers use to buy ad inventory. Advertisers use DSPs to define their target audience, set budgets, and specify what types of content they want their ads to appear alongside. Think of the DSP as the buyer’s tool in this system. On the other side is the Supply Side Platform, or SSP, which publishers use to make their ad space available to buyers. The SSP manages pricing and connects the publisher’s inventory to multiple DSPs at once, acting as the seller’s control center.
When a viewer starts watching content on their Smart TV and an ad break begins, the SSP sends a bid request to multiple DSPs. Each DSP evaluates whether this ad opportunity matches what its advertisers want, and if so, places a bid. The highest bid wins, and the ad appears on screen. All of this happens in milliseconds, faster than a human blink.
Streaming companies like VYRE Network monetize advertising through several different approaches. Some operate ad supported video on demand, or AVOD, services that are free or low cost for viewers in exchange for watching ads. Platforms like Peacock and Paramount+ offer these tiers alongside premium subscription options. Other services use hybrid models, offering ad free subscriptions at a higher price while also providing cheaper ad supported tiers. This approach has become increasingly common as major streaming platforms look to capture both audiences willing to pay for quality and those who prefer lower costs with ads.
The advertising revenue potential in CTV has grown significantly. The Interactive Advertising Bureau forecasts that U.S. CTV ad spending will increase 13.8% in 2026, up from 11.4% growth in 2025. Major sporting events like the FIFA World Cup drive particularly strong advertising investment because they attract large live audiences that advertisers value highly.
Nexxen enters the picture as an advertising technology company specializing in digital video, connected TV, and audience solutions. It focuses on monetizing advertiser demand across streaming and Smart TV environments. Nexxen has partnered with V, formerly known as VIDAA, to connect advertisers with soccer fans on VIDAA OS Smart TVs during the summer World Cup tournament.
The partnership allows advertisers to reach viewers on the Smart TV home screen, which is one of the most visible and high attention placements available in streaming. This matters because premium sports viewing during events like the World Cup can translate into better ad monetization and higher inventory value. For a small cap advertising technology company like Nexxen, distribution partnerships like this are strategically important since they expand the reach of the company’s ad technology.
Nexxen was among the first companies to launch programmatic activation of Smart TV home screen advertising, transforming what was once a manual buying process into an automated, scalable opportunity. The company also partnered with The Trade Desk to become part of their Ventura ecosystem, which gives advertisers programmatic access to premium V OS home screen inventory.
For companies in the streaming infrastructure space, partnerships tied to major events provide a clear way to assess monetization potential. Sports tournaments create predictable spikes in viewership, and advertising technology companies that can efficiently connect advertisers with those audiences stand to benefit from the increased demand. The CTV advertising market continues to grow as viewers shift from traditional linear TV to streaming, with average daily CTV viewing time expected to reach nearly three hours in 2026.
The intersection of advertising technology and streaming distribution represents a significant opportunity in the evolving media landscape. As measurement capabilities improve and standardization increases across platforms, advertisers gain more confidence in CTV spending. Companies like Nexxen that build infrastructure connecting advertisers to streaming audiences are positioned to capture value from this ongoing shift in how people consume television content.
