Streaming giant Netflix is asking for big bucks for brands to advertise on its streaming service, according to a new report.
Netflix, which is home to hits like “Stranger Things,” “Squid Game” and “Bridgerton,” expects strong demand when it launches its lower-priced, ad-supported service later this year.
According to The Wall Street Journal, executives from Netflix and Microsoft, which provides the technology for video ads on the service, met with ad buyers last week.
Citing unnamed buyers, the report says Netflix is seeking to charge advertisers roughly $65 to reach 1,000 viewers, a measure known as CPM, or cost per thousand.
That’s a “substantially higher” price than most other streaming platforms, buyers told the publication.
Buyers told The Journal that Netflix wants to “cap the amount any brand can spend annually on its platform at $20 million, to ensure that no brand advertises too much on the service and that people end up seeing the same ad too often.” “.
A Netflix representative told The Post: “We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made. So this is all just speculation at this point.”
However, ad prices can always fluctuate based on demand, meaning Netflix may come to market with high prices, but prices could drop quickly.
The move comes as Netflix looks to get into the advertising game after losing more than 1 million subscribers earlier this year, a rarity for the world’s largest streaming service. The company, which has more than 220 million subscribers worldwide, is now looking for ways to attract new customers.
Since announcing that it would look at advertising in April, a 180-degree change for the company that has long sold itself as a commercial-free haven, Netflix has moved quickly to facilitate the launch of the new service, including the hiring from Microsoft, as well as two executives from Snap to lead the ad push.
Ad buyers told The Journal that Netflix was considering launching the service on November 1. That would put it ahead of its main rival, Disney+, which said earlier this year that its $7.99-a-month ad-supported tier will launch on December 8.
Although Netflix has yet to price its ad-supported level, a recent report from Bloomberg said the company was looking at something in the $7 to $9 range. Netflix also dismissed that report as “speculation.”
Netflix currently offers ad-free options ranging from $9.99 to $19.99 depending on how many users are logged into the same account. The most popular service costs $15.49 in the US.