Netflix is poised to double its advertising revenue this year, with executives stating the service as a key component of the company’s future growth strategy. The move comes 14 years after the streaming giant launched its video-on-demand platform.
The company’s ad-supported plan, introduced in late 2022, has attracted 94 million users and is expected to generate significant revenue from eyeballs. Netflix aims to monetize engagement beyond subscriptions by leveraging advertising and AI-powered tools.
To drive sales, Netflix will inject interactive promotions into content, while also hosting live events like NFL games on Christmas Day and a high-profile boxing match. Analysts expect the ad revenue to surpass $4 billion, although this figure has not been confirmed.
CEO Greg Peters emphasized the importance of selling ads, citing a growing number of live events that attract advertisers due to their massive audiences. Meanwhile, co-CEO Ted Sarandos highlighted the potential of AI in enhancing film and series production, with an upcoming show featuring AI-powered visual effects.
With these moves, Netflix aims to cement its position as a leader in the streaming industry and diversify its revenue streams.
Source: https://gizmodo.com/netflix-is-doubling-down-on-ads-and-dabbling-in-ai-2000631347