Netflix is rolling out several new offerings for advertisers as it increases prices on its basic and premium plans.
Revealed at this year’s Advertising Week in New York, Peter Naylor, VP of global advertising, says the streaming giant will expand its advertising business by adding title sponsorships, ad-free bingeing, and a first-of-its-kind live sporting event.
The announcements come a day before Netflix revealed price hikes in the US, UK, and France. The streaming giant said monthly charges for its UK basic service would rise by £1 to £7.99, and the premium option will increase by £2 to £17.99, while standard plans will remain unaffected.
At Advertising Week, Naylor revealed that title sponsorships will allow a brand to become the sole sponsor for a show or season. Frito-Lay’s has signed on to be the first title sponsor of the upcoming season of Love is Blind.
‘We know that brands want to align with specific shows that are contextually and culturally relevant to their marketing objectives,’ Naylor said, reported by The Hollywood Reporter.
Additionally, Netflix’s ‘Binge’ ad format will allow users to watch another episode of a show ad-free after watching two to three episodes and a marketing message first.
This will allow brands to purchase a 30-60 second spot between episodes, which Naylor refers to as ‘your cinematic spot.’
Netflix will also introduce The Netflix Cup — a golf tournament featuring athletes from Formula 1: Drive to Survive and its new Full Swing golf series. The show will be powered by sponsors such as Nespresso and T-Mobile.
According to Mediaweek Australia, Naylor said: ‘What’s so great about these shows is they’re so influential on culture… and this offers an impactful opportunity for advertisers.’
The announcements come as Netflix published its Q3 results, revealing the company has pulled in an additional 9 million subscribers since cracking down on password sharing. The streaming giants’ total paid global subscribers is now more than 247 million, and Q3 revenues amounted to over $8.5 million (USD) — a 7.8% YOY increase.
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