September 1, 2022
Netflix, on its most-recent fiscal call, said it planned to launch a branded ad-supported subscription plan in early 2023. Now the SVOD pioneer is looking to expedite the launch, reportedly as early as Nov. 1 — and ahead of the launch of Disney’s ad-supported subscription plan.
The Wall Street Journal, citing sources familiar with the situation, reported that Netflix executives meeting with marketers have said their ad-supported SVOD tier is looking to charge higher CPMs, or cost per thousand viewers, than rival streamers with an AVOD tier. Marketers would be signed for yearlong contracts.
A Netflix representative, in a statement, said the streamer was still in “the early days” about the launch, pricing and other details.
“No decisions have been made,” the rep said.
Regardless, Netflix this week announced the hiring of two former Snap advertising executives — Jeremi Gorman and Peter Naylor — to help facilitate the panned 15-second and 30-second ad spots streaming before and during select programming. The streamer is allocating no more than four minutes of ads per 60-minutes of content, according to The Journal. Marketers typically account for more than 18 minutes of advertising per hour of linear television programming.
Netflix earlier this year entered into a partnership with Microsoft for its backend ad technology that could help it target select viewers, including those that watch the streamer’s top 10 programs, and/or specific genres.