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State of the Screens

Netflix blew past subscriber growth targets in Q4, and the stock is soaring to record highs

By January 29, 2018No Comments

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.

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.