News on Medial

Amazon has upended the streaming ad market, and Netflix is paying the price

Livemint · 1y

Netflix is lowering its ad rates and exploring new options like product placement to strengthen its ad business. This move comes as the company faces increasing competition in the streaming ad market, with Amazon recently converting its Prime Video subscribers to an ad-supported version. As a result, Amazon's large ad-supported base is influencing negotiations between Netflix, YouTube, TV networks, and advertisers. Netflix is offering reduced rates to some brands, charging around $29 to $35 for reaching 1,000 viewers, closer to Prime Video's pricing. Netflix is also offering premium ad packages with product integrations and sponsorships of live events linked to its content. However, negotiations are ongoing and pricing may change.