Netflix said it has wrapped up its upfront ad negotiations, posting a 150% increase in sales commitments over 2023, in line with company expectations.
The presence of ads on the world’s leading streaming service is a new phenomenon, of course, putting an asterix on statistical comparisons, but the news is the latest sign that a major strategic effort is showing progress. After spending more than a decade insisting it would never run ads, Netflix reversed course in 2022, quickly ramping up an ad team and establishing a new $7 subscription tier. It has been followed by Disney+ and Prime Video as all streaming players except Apple TV+ lean into advertising.
In a blog post, Amy Reinhard, President of Advertising, said the company closed upfront deals with all major holding companies as well as independent agencies. Transactions spanned major categories like consumer packaged goods, tech & entertainment, auto, quick-serve restaurants and retail.
Films and series being featured in upfront talks include Squid Game, Wednesday, Outer Banks, Happy Gilmore 2, Ginny & Georgia, and Love is Blind. Live events like Christmas Day NFL games and WWE Raw, which will stream weekly starting in January as a multi-year rights deal begins, also enticed buyers.
For Season 3 of Bridgerton, Netflix’s sixth most popular English-language TV series of all time, Reinhard said the company secured on-screen title sponsors including L’Oreal, Pure Leaf, Amazon Audible, Puig, Booking.com, Stella Artois, and Hilton. Another roster of sponsors mobilized for Emily in Paris when the first half of its new season went live earlier this month.
“Over the last few months, we’ve hit great milestones for our ads business,” Reinhard wrote in the blog post. “We’ll continue to improve the Netflix ads plan to ensure our members are delighted by the experience while simultaneously creating solutions that deliver results for our marketers, putting brands at the center of the best shows and films in the world, to a highly valuable and engaged audience.”
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