Netflix beat Wall Street estimates (again) by adding 8.3Msubscribers vs. a projection of 6.3M.
Netflix also announced that they plan to increase content spending 14% to $8B from $7B in 2018.
Keep in mind. That annual increase ($1B) is the same amount Facebook has announced it plans to invest in original video content!
More. Netflix: ‘Ad-Supported Internet Video Big Force In The Market’
Flashback. Netflix tests pre-roll video ‘previews’ that are personalized to your interests
The average Netflix user watches 1h, 33m of content per day.
If we assumed a 16-minute ad load per hour (similar to TV), then each Netflix customer could potentially receive 48 30-second spots per day or 336 per week.
At a $25/CPM that would generate $1.20 in ad revenue per user/day or $37.20 per month.
The most expensive Netflix plan is currently $11.99 per month.
