New VIP+ Analysis: Reports of what the streamer is offering ad buyers for sky-high prices indicate the streamer is rushing into advertising.
, streaming video ad spending in Q2 was softer than expected, with MoffettNathanson now estimating year-over-year growth for the category at 29 percent, down from its earlier estimate of 44 percent.
A company spokesperson told VIP+ in a statement,"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." The streamer is reportedly planning to simply run traditional video ads before and during content, and with limited targeting capabilities: Ad buyers toldthat the personalization Netflix offers is “less granular” than typical online ads. In other words, the streamer is asking for premium rates while not even offering competitive levels of ad tech out of the gate.
In short, Netflix is coming into negotiations asking for top dollar while offering the prestige of advertising on Netflix — and not much else.
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