Netflix is currently running 30-second pre-roll ads promoting it’s own content.
This is the 2nd time that they have tested this feature and is similar to how HBO/Showtime both promote their own content prior to a show starting.
Could this be the groundwork for an advertising offering?
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 day or $37.20 per month.
The most expensive Netflix plan is currently $11.99 per month.