Analyst Boosts Netflix '24 Ad Forecast To $2.1B, Cites Faster Ad-Option Growth

Citing stronger-than-expected ad-option subscriber growth, the equity research team at New Street Research this morning revised their 2024 ad revenue projection for Netflix up by $700 million to $2.1 billion.

Most of that ad spending ($1.231 billion) will come from the U.S. and Canada, with other markets increasingly accounting for …

1 comment about "Analyst Boosts Netflix '24 Ad Forecast To $2.1B, Cites Faster Ad-Option Growth".
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  1. Ed Papazian from Media Dynamics Inc, January 18, 2024 at 9:37 a.m.

    So let's say that the analyst is substantially correct and the ad-supported Netflix service obtains about $1 billion in U.S. ad revenue  this year. That's must be assuming that it can maintain its high CPM demands of around $45-50. But is that likely considering how small the service's overall coverage is?

    When Netflix announced its decision to enter the ad-suppored field some of us---myself included---speculated that this move----if well executed----might develop into a much larger entity than it has become and U.S.  ad revenue expectations were as high as $4 billion annually by this time. So while I and, I hope, others still wish Netflix success in the AVOD business, what we have seen so far is a huge disappointment. The launch was far too tentative and the initial offerings were hardly advertiser-friendly. Perhaps better is to come.---We shall see.

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