Netflix’s advertising revenue reached US$1.5 billion (around C$2 billion) last year, more than double from the year prior.
The streamer announced the milestone as part of its latest earnings call on Tuesday. During the call, Netflix co-CEO Greg Peters said the company expects this number to double once again this year. “We’re making good progress, and the opportunity ahead of us is massive,” he said.
For context, Netflix confirmed last May that it had reached 94 million ad-tier subscribers. Considering it surpassed 300 million overall subscribers last year, that’s quite a sizeable number of people opting for the lower-cost $7.99/month ad membership.
When Netflix debuted the ad tier in late 2022, some viewers scoffed at it, given that they’d grown accustomed to an ad-free experience. But considering ad-free Netflix memberships cost as much as $23.99/month now, many are clearly willing to settle for ads to save a few bucks. This year, Netflix is also planning to roll out new AI tools for advertisers.
The news comes as Netflix just announced a real-time voting feature for live events. The company is also working to close its US$82.7 billion (roughly C$114.37 billion) acquisition of Warner Bros. It’s also attempting to fend off another interested buyer, Paramount, by revising its bid to an all-cash offer.
Via: The Verge
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