Streaming giant Netflix is asking top dollar for brands to advertise on its streaming service, according to a new report.
Netflix, which is home to hits like “Stranger Things,” “Squid Game” and “Bridgerton,” is expecting strong demand when it launches its lower-priced ad-supported service later this year.
According to The Wall Street Journal, execs from Netflix and Microsoft, which is supplying the technology for the video ads on the service, met with ad buyers last week.
Citing unnamed buyers, the report said Netflix is looking to charge advertisers roughly $65 for reaching 1,000 viewers, a measure known as CPM, or cost per thousand.
That’s a “substantially higher” price than most other streaming platforms, the buyers told the publication.
Buyers told The Journal that Netflix wants to “cap the amount any brand can spend annually on its platform at $20 million, in order to ensure that no brand advertises too much on the service and people end up seeing the same ad too often.”
A rep for Netflix told The Post: “We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made. So this is all just speculation at this point.”
Ad prices can always fluctuate based on demand, however, meaning that Netflix may come to market with high prices but they could quickly fall.
The move comes as Netflix looks to jump in the advertising game after it shed over 1 million subscribers earlier this year— a rarity for the world’s largest streaming service. The company, which has more than 220 million global subscribers, is now looking for ways to attract new customers.
Since announcing its would look into advertising in April — a 180-degree change for the company that has long sold itself as a commercial-free haven — Netflix has moved quickly to facilitate the launch of the new service, including hiring Microsoft, as well as two execs from Snap to lead the advertising push.
Ad buyers told The Journal that Netflix was eyeing a Nov. 1 launch for the service. That would put it ahead of chief rival Disney+, which said earlier this year that its $7.99-a-month ad-supported tier will launch on Dec. 8.
Although Netflix has yet to price its ad-supported tier, a recent report from Bloomberg said the company was considering something in the $7 to $9 range. Netflix also dismissed that report as “speculation.”
Currently, Netflix offers ad-free options that range from $9.99 to $19.99 depending on how many users log in to the same account. The most popular service costs $15.49 in the US.