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Ad-Supported Tiers on Netflix

The video world is constantly changing and can be complex and crowded. Streaming services have seen a rapid evolution and are seemingly everywhere nowadays. By 2026, an estimated 73% of the US will consume content via streaming platforms. Identifying your target audience and how they consume video is crucial to building efficient campaigns.

Netflix recently announced a new ad-supported option for their platform, and we know many may have questions about this new tier. While information is still rolling out, here is what we know so far:

The current plan from Netflix is to launch in 6 markets by November 3rd with the goal of reaching all markets by the spring of 2023. The Cost Per Thousand (CPM) is expected to run around $65 – 80 (in comparison, most targeted video – including Hulu – is more in line with $30 – 50).

73%

of the United States will consume content via streaming platforms by 2026.

The Netflix ad-supported tier will have about 4 minutes of ads per every hour of TV programming, while movies will feature pre-roll ads (like a movie theater). Cable TV, for example, runs a typical range of 10-20 minutes of ads per hour and network TV runs about 18-23 minutes of ads per hour.

The ad-supported tier will cost consumers $6.99 per month. Some ad verticals will not be accepted including political, gambling or cryptocurrency (Netflix is still weighing whether or not to accept pharmaceutical ads). There is also a good chance that the ad-supported tier probably won’t have access to the same shows.

Whether through Netflix or another streaming option, video is a great way to get your message seen by the right audience!

We’d be happy to talk with you more about how streaming video can help you reach your business goals!


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