Netflix Weighs Charging A Whopping Sum For Advertisement On Its Ad-Supported Platform, Buyers Say

Netflix Inc NFLX plans to charge brands premium prices to advertise on its coming ad-supported platform, according to some ad buyers, the Wall Street Journal reports.
Executives from Netflix and Microsoft Corp MSFT, which supplied the technology to facilitate the placement of video ads on Netflix, reportedly met with some ad buyers.
Netflix sought to charge advertisers $65 for reaching 1,000 viewers, a measure known as cost per thousand, which is substantially higher than most other streaming platforms.
Netflix reportedly wants brands to commit to a year-long upfront ad buy akin to traditional TV networks.
Netflix raced to bag a lower-price, ad-supported tier to generate revenue and attract more cost-conscious users.
Netflix seeks to cap the amount any brand can spend annually on its platform at $20 million to prevent brands from excessive advertisement.
Recently, Netflix appointed two Snap Inc SNAP executives, Jeremi Gorman and Peter Naylor, to lead its ad effort.
Netflix also reportedly explored cloud gaming to boost growth.
Streaming companies like Netflix combated subscriber losses as people moved out for entertainment following the pandemic recovery.
Additionally, the inflation, geopolitical crisis, and uncertain macro curtailed consumer spending.
Price Action: NFLX shares traded lower by 0.09% at $223.35 in the premarket on the last check Thursday.
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