Analyst: Advertisers swarm to Netflix
October 14, 2022
By Chris Forrester
A report from analysts at MoffettNathanson (MN), quoting Jeremi Gorman, Netflix’s new president of worldwide advertising, says that Netflix has almost sold out its available inventory for the launch of its ad-supported tier.
A Netflix Q3 earnings call scheduled for October 18th should reveal more details, however, MN agrees with Netflix’s own expectations that the ad-based service will be “neutral to positive” in terms of revenues.
MN says Netflix plans to initially have 4 to 5 minutes of commercials per hour vs its initial assumption of 4 minutes per hour.
“Another variable that was better than expected is the percentage of content viewership that is cleared for commercial monetisation: we assumed 80 per cent of minutes in 2023 would be cleared for ad exploitation vs the company’s estimate of 90-to-95 per cent,” notes MN.
One current unknown that concerns MN is how many current high-tier Netflix subscribers (from the all-embracing $14.49-$19.99 plans) might churn down to the ad-supported level.