Netflix Next Steps
Netflix is getting serious about advertising on its service. Now, I know I am not the only one dreading the implementation of the ads that are supposed to start but Netflix is definitely trying to get the ball rolling. In an effort to do so, Netflix has partnered with Microsoft and hired two ad executives from Snapchat to help them enter the ad streaming space. As the company is shooting for November 1st to start launching ads, Netflix has met with some ad buyers. They are seeking to charge advertisers about $65 for reaching 1,000 viewers. This is higher than other streaming platforms. Since releasing the information about Netflix including ads, they have also been trying to find ways to make it as cost-effective as possible for their money-conscious consumers. The plan so far is that the next upcoming tier is set to launch early next year and will cost between $7 to $9 a month. This package will include four minutes of ads for every hour of content. Netflix anticipates generating $1.5 billion in revenue by 2023 as the average user watches about two hours of content a day. Along with Netflix, other companies are looking to implement ads in their services too. For example, Disney is also set to release an ad-supported version on December 9th. The ad-supported plan will cost the same as the free one does now, $7.99 a month, while the other non-ad version will be priced at $10.99. Hulu is also going to launch an ad-free version on October 10 that will be $14.99.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.