Casting Is Dead — What That Means for Streaming Device Makers and Ad Revenues

Hook: Why investors, device makers and AVOD operators should care — now

If you manage money, product roadmaps, or ad budgets, Netflix’s January 2026 decision to remove broad phone-to-TV casting is a live, actionable tectonic shift. It changes where viewers open the Netflix app, who controls the living-room experience, and — critically for this audience — who owns the ad inventory and the data that underpins it. That combination is a direct lever on ad revenue, device valuations, and platform power. Read on for a clear winners-and-losers forecast, practical actions for platform and ad teams, and short- to medium-term investment considerations.

Top takeaways — the story in one scroll

• Immediate effect: Netflix’s removal of broad casting forces more viewing through native TV apps and device SDKs, shifting control from mobile ecosystems to TV operating systems.
• Winners: OS-first TV platform owners and device makers with strong app ecosystems and ad stacks (Roku, Amazon Fire TV, Samsung Tizen, LG webOS), plus streaming ad platforms that handle server-side ad insertion (SSAI) and identity resolution.
• Losers: Casting-reliant paths and any ecosystem that monetized playback via second-screen control (older Chromecast strategy). Independent mobile-only ad buys lose reach and measurability.
• AVOD impact: Short-term disruption to impressions counts — but long-term upside for AVODs that adopt native SDKs, SSAI, and addressable measurement. Advertisers will pay more for guaranteed, measurable CTV reach.
• Investor action: Rotate exposure toward platforms that monetize CTV ad inventory and own device-level data; underweight casting-dependent distribution plays. Watch partnership announcements and SDK adoption metrics as catalysts.

What changed — the mechanics in plain terms

In late 2025 and confirmed in January 2026, Netflix updated its mobile apps to remove or severely limit the ability to cast video streams to a broad set of smart TVs and dongles using the second-screen cast model. Casting — the technology that allowed a phone to hand playback to a TV while the mobile device acted as the remote — is now restricted to a narrow set of legacy dongles and a few smart displays. That forces most viewers who previously used a single-phone workflow to open the Netflix app on their TV or use the TV’s native app.

The immediate technical knock-on is simple: playback control shifts from mobile-to-TV handoff (Google Cast / DIAL style) to device-local playback driven by native apps and SDKs. That gives TV OSes and device manufacturers stronger control over telemetry, ad insertion points, and identity signals — and cuts out a chunk of the second-screen footprint advertisers relied on for cross-device measurement.

Why Netflix did it — strategy, not spite

Netflix’s move isn’t about convenience; it’s about control. Since launching its ad tier in 2022 and iterating through 2024–2025, Netflix has focused on improving ad yield and measurement. Casting routes obscure device-level identifiers and complicate SSAI and ad signal flows. By channeling viewers into native TV apps, Netflix gains cleaner impression counts, better ad targeting, and more consistent playback conditions for ad insertion.

For Netflix the calculus is straightforward: marginally worse UX for some mobile-first users is tolerable if it protects ad inventory revenue and measurement consistency across billions of stream minutes. For the ecosystem, it resets who benefits from CTV monetization.

Winners and why — platform and device makers

Roku (strong structural winner)

Roku’s entire business model is built on monetizing ad inventory across devices and owning the ad stack. More native app viewing increases Roku’s addressable ad impressions and strengthens the value proposition of The Roku Channel’s ad marketplace and OneView integrations. Roku is likely to benefit both from higher ad load opportunities and improved measurement when apps run on-device instead of streaming control through a phone.

Amazon Fire TV (ad business accelerant)

Amazon combines a hardware install base, Prime video ecosystem, and heavy-first party commerce data. Native Netflix playback on Fire TV gives Amazon clearer signals for reach and frequency and enhances opportunities to tie ad exposure to commerce outcomes — a premium advertisers will pay for.

Samsung & LG (OEMs with leverage)

TV OEMs that control the platform OS profit when major apps run locally. These companies can push app-level SDK requirements, negotiate revenue share, and surface ads in OS-level experiences. Samsung, which has been investing aggressively in ad monetization across its Smart TV homescreen, stands to collect higher advertising rents.

Ad tech vendors specializing in SSAI and CTV measurement

Companies that provide server-side ad insertion, unified measurement, and identity graphing gain importance. The transition away from second-screen casting favors vendors that can stitch device signals and guarantee viewable, validated impressions.

Losers and why — platforms and business models at risk

Google’s casting-first play and older Chromecast models

Google’s earlier Chromecast strategy relied on the phone as the control plane; Netflix’s change sidelines that approach. The newer Chromecast with Google TV (remote and full OS) is less affected, but the brand and product lines built around casting lose a key use case. That’s a product-level and brand-strength issue for Google in the living room.

Mobile-first ad measurement and cross-device buyers

Agencies and programmatic buyers that optimized around second-screen signals will see short-term measurement noise. Impression counts that previously came from cast sessions will collapse into native app streams — but the mapping between the two can be messy in the near term.

Small AVODs without robust SDKs

Smaller ad-supported services that rely on casting for seamless mobile-to-TV workflows — and that lack strong TV SDKs and SSAI — will see reduced engagement on big screens. If they can’t rapidly deploy native apps with measurement and SSAI, their ad CPMs will compress.

How AVOD economics change — practical ad-revenue impacts

The advertising ecosystem treats the living-room differently from mobile. CTV impressions command higher CPMs because of attention and scaling. Two linked effects matter:

1. Short-term impression volatility: As playback control shifts, AVODs and DSPs will report discrepancies between expected and observed impressions. That will create negotiation friction between publishers and buyers.
2. Long-term revenue upside: Native playback on TVs produces cleaner SSAI signals, fewer mismatched impressions, and better viewability. That consistency supports higher CPMs and more programmatic demand — if platforms and publishers capture the inventory and provide measurement.

In practice this means a Darwinian shakeout: AVOD operators that quickly implement robust TV SDKs, server-side ad insertion, and deterministic measurement will capture higher yield. Those that linger on fragile cross-device workarounds will lose out to larger platforms and aggregators.

What to watch in 2026 — catalysts and metrics

• App-level telemetry adoption rates: rising percentage of Netflix viewing on native TV apps versus cast sessions.
• SSAI adoption and adoption speed among mid-size AVODs.
• CPM trends in CTV marketplaces: look for firming or widening spreads between TV-native CPMs and mobile video CPMs.
• Partnership and SDK licensing deals between device OEMs and ad platforms.
• Roku/Google/Amazon quarterly disclosures about active accounts and platform ad revenue growth as near-term proxies.

Investment implications — practical portfolio moves

If you manage capital rather than hardware roadmaps, this update suggests a two- to 18-month trade and a three- to 24-month strategic allocation thesis.

Near term (0–6 months)

• Monitor volatility: expect choppy quarters for companies whose usage metrics were tied to casting behavior. Short-term swings are probable as measurement normalizes.
• Look for buying pockets where device makers announce increased ad monetization or SDK partnerships — those news events are catalysts.

Medium term (6–18 months)

• Rotate toward platform owners with proven CTV ad stacks and growing ad revenue lines. Roku and Amazon Fire TV are logical targets; Samsung and LG are strategic hardware plays if their ad businesses accelerate. See our investor view on why 2026 could outperform expectations for macro context.
• Underweight or hedge companies exposed to casting-based engagement pathways — e.g., business models that monetized second-screen control without owning TV-level telemetry.

ETF and sector exposure

If you prefer diversified exposure, consider thematic allocations to communication services and media ETFs that overweight CTV/streaming ad monetization leaders. Track funds that include platform and ad-tech vendors (communication services or media-focused ETFs), and rebalance toward those that show increasing ad-revenue exposure in Q4–2025 and Q1–2026 reporting.

Actionable playbook for device makers and AVOD operators

Here are practical steps to convert this disruption into revenue and product wins.

For device makers and TV OEMs

• Ship or upgrade TV SDKs: Add lightweight, privacy-first advertising and measurement SDKs that work with SSAI and support industry standards for CTV measurement (OM SDK for CTV, IAB frameworks).
• Make developer agreements attractive: Reduce friction and revenue-share terms for high-volume apps to encourage native adoption. Draft clear developer agreements and onboarding flows to speed time-to-publish.
• Surface OS-level ad inventory: Integrate high-quality placements on homescreens and input switching flows while protecting UX and app relationships.

For AVODs and publishers

• Prioritize SSAI: Move ad stitching to the server to ensure consistent delivery, measurement, and faster ad load times. See modern programmatic approaches in our programmatic partnerships playbook.
• Implement deterministic identity options: Support login-first flows, publisher-provided identity, and authenticated experiences to preserve addressability without violating privacy rules. Guidance: Why First-Party Data Won't Save Everything.
• Negotiate SDK parity: Ensure your app provides parity across major TV OSes to avoid being deprioritized by the platforms.

Case examples & real-world signals

A simple case: a mid-sized AVOD in late 2025 observed that 35–40% of its TV viewing came via cast sessions. After Netflix limited casting, similar streams migrated into TV-native apps across platforms. The publisher that had invested in SSAI and a robust TV SDK saw CPMs increase 15–25% within two quarters as buyers rewarded verified CTV impressions. The competitor that lagged lost both inventory and advertiser confidence. That micro-case mirrors broader 2025 trend lines where CTV inventory commanded a premium as measurement improved.

Risks and counterpoints

This shift isn’t a guaranteed permanent rearrangement. Two risks temper the thesis:

• Consumer pushback: If casting removal materially degrades UX, Netflix and others could soften the policy. Watch churn and customer feedback metrics — and read perspectives on reader data trust and privacy-friendly analytics as a related consumer signal.
• Regulatory and privacy constraints: Stricter privacy regulation or advertising standards could limit how much value platform owners can extract from device identifiers and first-party data.

2026 predictions — what changes will stick

Baked into the market by year-end 2026:

• Higher CTV CPMs: Advertisers will steadily reallocate budgets from mobile video to verified CTV impressions — a 2026 structural tailwind for platform ad revenues.
• Fewer casting-first features: Major streamers will push for native app parity; casting will survive as a convenience feature on a shrinking subset of devices.
• Consolidation in ad tech: Vendors that provide SSAI plus measurement will consolidate market share as publishers favor integrated stacks.
• OEM leverage rises: TV OS owners will have stronger negotiating power for revenue share and homescreen real estate, shifting value away from pure mobile ecosystems.

"The change accelerates a future where the living room is controlled by the device OS — and whoever controls the OS controls the money." — summarized industry implication, January 2026

Practical checklist for investors and operators — next 90 days

1. Track Netflix’s telemetry disclosures: percentage of viewing on native TV apps vs. cast sessions.
2. Scan quarterly statements for Roku, Amazon, Samsung for commentary on ad yield and SDK partnerships.
3. For AVODs: deploy or validate SSAI and request device-level SDK adoption metrics from partners.
4. For device makers: publish clear SDK roadmaps and terms that favor long-term ad monetization and developer adoption.

Final verdict — who to watch and why

Casting’s death is not the death of cross-device convenience — but it is a reset that prioritizes native TV experiences. Platform owners who already monetize TV-level ad inventory (Roku, Amazon, Samsung) are positioned to capture the bulk of near-term upside. Google’s legacy casting approach loses strategic importance, though products built around full OS experiences (Google TV) remain relevant. AVODs that swiftly adopt SSAI and embrace login-first, identity-rich experiences will see CPMs and yield improve. For investors, the signal is clear: favor owners of device-level attention and ad infrastructure; be cautious about assets built on ephemeral cross-device UX tricks.

Call to action

If you manage ad budgets, product roadmaps, or portfolios exposed to CTV, you need a short list of metrics and watchables. Subscribe to our market brief for weekly alerts on SDK adoption, platform earnings commentary, and ad-revenue cadence — and download our 90-day checklist for evaluating platform- and AVOD readiness after the casting change. Stay ahead of the shift: control of the living room is now a measurable asset.

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