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One year after the Daily Beast launched Obsessed, its vertical dedicated to coverage of television and film, the section has topped seven figures in advertising revenue and seen an uptick in readership, according to president of advertising and partners Lindsay Jaffe Levy.
The vertical, which publishes reviews, recaps and recommendations, grew out of a popular newsletter of the same name, helmed by senior editor Kevin Fallon.
By launching as a standalone vertical, the section has sought to draw new readers into the Daily Beast ecosystem, and its scope of coverage has unlocked deeper—and occasionally new—advertising opportunities with entertainment companies.
“The opportunity to launch Obsessed was really exciting, and our advertisers have responded with enthusiasm,” Levy said. “Instead of drumming up scandal, Obsessed takes a fresh, fun approach to entertainment.”
Reality TV boosts revenue
In its first year, Obsessed has signed deals with three of the four major cable networks, and 75% of its clients are renewals. Paramount alone has executed more than a dozen programs since launch, according to Levy.
The vertical derives its revenue entirely from advertising, 70% of which comes from direct sources. It has generated seven figures in top-line business, although the publisher declined to provide a specific figure.
The Daily Beast is backed by IAC, a publicly traded company that also owns Dotdash Meredith. While revenues at Dotdash Meredith have wilted in the sluggish advertising economy, Obsessed has been less affected by the downturn, according to Levy.
The vertical owes this resilience in part to a bit of luck. In a surprise to editorial leadership, coverage of reality television has proven to be one of the most popular offerings for Obsessed—outpacing genres like drama and true crime. The coverage is responsible for one-third of all entertainment revenue across the Daily Beast, according to Levy.
Reality TV also aligns well with the tone of Obsessed, which skews gossipy. And although the writers strike ended on Sunday, prior to its conclusion television networks and streamers pushed their unscripted offerings, including reality TV, in the interim. The serendipitous timing no doubt provided a boost in visibility for the nascent offering.
The commercial traction of Obsessed also comes as the streaming industry more broadly has looked to cut costs, including marketing budgets, according to Andrew Becks, the chief operating officer of media agency 301 Digital.
Compared to 2020 and 2021, when new streamers spent lavishly to increase brand awareness of their offerings, many of the companies have since moved to embrace performance advertising.