Netflix Reportedly Accelerates Ad-Tier Timeline, Charging Premium CPMs

By Bill Bradley 

Netflix is adding ads sooner than we thought.

According to multiple reports, the streamer has met with buyers about its ad-supported tier and is looking to charge advertisers a CPM of $65 for every thousand viewers reached. The company is also looking to cap brands at $20 million annually to ensure spots aren’t over-advertised. The ads will reportedly consist of 15- and 30-second spots that would appear before and during some programs and have an ad load of 4 minutes per hour.

Netflix and its advertising partner, Microsoft Corp., reportedly plan to debut the lower-priced tier on Nov. 1, 2022. The company previously announced it was targeting early 2023 for the launch.


With its accelerated timeline, Netflix would notably beat Disney+’s ad-supported launch, which rolls out on Dec. 8.

“We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made,” a Netflix spokesperson told Adweek, adding, “This is all just speculation at this point.”

The news comes shortly after Netflix confirmed it snagged two Snap execs to run its advertising division, bringing on Snap’s chief business officer Jeremi Gorman as president of worldwide advertising and Snap’s vp of sales, Americas, Peter Naylor, to serve as vp of advertising sales.

Netflix announced a global subscriber loss of nearly 1 million in the second quarter, dropping to 220.67 million total subscribers. However, the company will look to end that trend with its lower-priced tier, which is expected to debut in the $7-9 price range.