The advertising space on Netflix was sold out thanks to big brands such as LOUIS VUITTON, BULGARI and TIFFANY & CO

Netflix is in high demand this year as the streaming service has sold out ad slots to brands such as Louis Vuitton and Bulgari, reports say.

By Admin

Recently, Netflix has officially launched an ad-supported membership package, priced at less than $6.99 in 12 countries: Australia, Brazil, UK, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain and the United States.

According to multiple media sources, Netflix streaming said it had almost sold out of its entire inventory at launch and brands like Anheuser-Busch InBev, L'Oréal, Louis Vuitton , Tiffany & Co., Bulgari…… It is known that the ads will last from 15 to 30 seconds.

According to a report in The Guardian, Netflix is selling its ad slots for around £50 for every 1,000 viewers achieved - double what ITV and Channel 4 charge.

Microsoft has been chosen by Netflix as the platform's first "global ad technology and sales partner". Marketers will have access to a huge audience, premium connected TV inventory for advertising needs on their network. All advertisements served through this partnership are available only through Microsoft's services

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In addition, Netflix has also partnered with DoubleVerify and Integral Ad Science to verify ad viewability and traffic validity starting in Q1/2023.

In April this year Netflix began considering signing up for ad support after years of fighting ads on its platform. Co-CEO Reed Hastings previously said on his earnings call that offering a cheaper option to consumers would "make a lot of sense".

Its stock also fell more than 25% in the hours following its April earnings report; the move to ad-supported subscriptions comes after Netflix saw a 200,000 subscriber drop, according to CNBC. , marking the first drop in paid subscribers in more than a decade.

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Tammy Parker, principal analyst at GlobalData, commented that Netflix is taking cautious and reasonable steps to include advertising on the platform. The platform will only show ads an average of 4 to 5 minutes per hour, each between 15 and 30 seconds in length in most markets. "Netflix almost sold out when it first launched. This is not surprising given the growing interest in streaming services by advertisers," she said.

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However, Netflix's launch of a subscription package with ads also received many negative comments. Some famous producers such as Shonda Rhimes - who has participated in many famous shows such as Grey's Anatomy, The Princess Diaries 2, ... are not satisfied with the decision of the platform. The report also states that Netflix will not share any advertising revenue with the producers.

On the content front, well-known producers like Shonda Rhimes, who has a multi-year contract with the platform, are not happy with the streaming site's decision to include ads in the middle of the content. While Netflix is certainly not the first to embrace ad-supported content, it has used the lack of advertising to attract popular content creators and market its platform.

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