May. 10 at 5:51 PM
The increasing value of an ad-supported subscriber
Based on EDO’s analysis, an ad-supported subscriber paying roughly
$8.99 a month can generate about
$12.89 in total monthly revenue after 10 hours of viewing,
$16.79 after 20 hours, and roughly
$20 after about 28.5 hours. At about 41 hours of viewing, that subscriber can generate nearly
$25 in monthly revenue, notably more than the now standard
$19.99 ad-free Netflix subscription.
The model assumes a
$43 CPM, or cost per thousand impressions, and about nine 30-second ads per hour, said Krim. “It fundamentally changes how streaming networks should value that subscriber,” he said.
“Building out our ads business continues to be a major monetization priority. Our advertising revenue remains on track to reach
$3 billion in 2026, up 2x year-over-year,” said Netflix spokesperson Adrian Zamora.
$NFLX $DIS