Netflix’s advertising plan is finalized

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Photo-Illustration: Vulture

Netflix told us it’s bringing ads to streaming party in 2022, and it still hasn’t revealed exactly how, but reports are slowly coming in. He started his embryonic advertising business by attempting partnerships with streaming competitors Roku and Comcast, information reports – a heel turn given that CEO Reed Hastings called the advertising firm a “hand-to-hand fight” two years ago. Joining forces may be cheaper than creating a new business arm from scratch internally, but Netflix will also face increased licensing costs; Presenting shows and movies for ad-supported streaming will cost around 20% more, according to information. And some of the ad placements he’s considering include “pre-roll ads, which run before a show starts,” and possibly ads on “program tiles on the home screen.” , so goodbye to content rows and episodes of The circle strangely bleeding into each other.

The reported plan looks comparable to those of services like Amazon Prime Video and Hulu (and Comcast’s Roku Channel and Peacock, for that matter) — but very different for a service that’s focused on uninterrupted, subscription-based consumption for years. “We are still in the early days of deciding to launch a cheaper, ad-supported option, and no decision has been made, so it’s just speculation at this stage,” a spokesperson said. The company is rethinking everything from password sharing to how it gives the go-ahead as it recovers from its 72% stock plunge, but the proposals underscore just how much it relies on providing from that cheaper subscription tier in time for a holiday gift this year. It’s the thought that counts.

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