It has been reported that streaming giant Netflix is ready to use its hit titles to increase advertising revenue.
The company has revealed that it will start to offer “title sponsorships” to advertisers to align with the new reality show Squid Game: The Challenge and the final season of The Crown as part of a concerted effort to increase the profitability of its ad-supported tier.
“We want to shape the future of advertising on Netflix and help marketers tap into the amazing fandom generated by our must-watch shows and movies,” says Amy Reinhard, Netflix’s new President of Advertising, in a prepared statement (per Variety).
Netflix’s new bid to attract more advertisers follows co-CEO Ted Sarandos stating in May: “Our move into advertising is pretty modest in terms of crawl, walk, run — and we’re definitely in the crawl phase.”
The company says its ad-supported tier has lured 15million monthly global users. In an October letter to shareholders, it also claimed that advertising-tier subscriptions account for roughly 30% of all new sign-ups in 12 different places. It said it was “working with brands to create formats they will value, in particular the ability to connect with highly conversational and culturally relevant programming.”
Commencing in the first quarter of 2024, Netflix will offer global advertisers access to a new “binge ad” package that gives viewers who watch three consecutive episodes the chance to catch a fourth without interruption by adverts. Audiences will also be informed that a particular sponsor is giving them a chance to watch an episode without interruption. The streaming giant plans to give advertisers the ability to use QR codes in commercials early next year.
Netflix also wants to offer sponsorships tied to a particular title, moment or livestream. The most recent example is that Frito-Lay has aligned the Smartfood popcorn snack with the new season of Love Is Blind. According to Variety, it has also found sponsors for Squid Game: The Challenge and The Crown.