Here’s Why Netflix May Add Ads

An AVOD approach opens up more inventory and opportunities for marketers

Netflix announced its first subscriber loss in over a decade on Tuesday, forcing a legacy streamer stuck in its ways to reevaluate its approach in an increasingly crowded market.

In a turnaround from a years-long position, co-founder and CEO Reed Hastings said that an ad-supported tier may be in the company’s future to drive further revenue and reduce churn—and buyers are ready for it.

“The challenge that we had in streaming was that the majority of viewership time was being spent on platforms that were not ad-supported, like Netflix, which created inventory scarcity in streaming, and quite frankly, limited the reach potential,” Kelly Metz, OMG’s managing director of advanced TV activation, told Adweek.

Netflix has been staunchly against ads since the launch of its streaming division.



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