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Netflix ‘will have to run ads’

Advertising execs predict a U-turn for the streamer

Advertising industry experts have predicted Netflix will eventually run adverts.

During an event in New York, Tara Walpert Levy, YouTube and Google’s VP of Agency and Media Solutions, told the audience: “They’re going to need growth. Eventually, they’re going to need more growth.”

Joshua Lowcock of media agency UM said though there’s been a move toward getting rid of adverts, he expects that trend to revert, reports CNBC.

“We grew up in digital, believing we should inject ads everywhere at every moment we could,” Lowcock said. “And that’s why you’ve seen ad blockers and a move to ad-free environments. I think there will become a tipping point where ads come back.

“Netflix is ad-free now. I can’t imagine a world where Netflix will be ad-free forever. If you look at their content costs … that’s where addressable advertising and new ad formats will come in.”

JP Morgan Chase CMO Kristin Lemkau said consumers would be open to ad-supported options if those options are transparent and consumers understand the value exchange.

“The consumer wants choice and they want something that creates value for them,” Lemkau said. “To the extent that you’ve got this subscription version versus the non-subscription version, consumers will take that tradeoff.”

Article source: TVB Europe, by Jenny Priestley

Advertising, Netflix