How Netflix's ad tier will impact revenue and growth
Netflix will earn $5.5bn in advertising income and an additional $3.5bn in ad-tier subscription fees by 2027, with a small uplift to global subscribers.
The ad tier will hedge against a stagnant audience in North America, while in the Western Europe and Asia Pacific regions, the ad tier will boost Netflix's business. But in Latin America, the case for advertising is less clear cut.
Ampere Analyst, Ben French latest report analyses how the introduction of an ad-tier will impact Netflix's revenue and growth.
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Primer: Pay TV in North America
Despite North America being one of the oldest and most developed pay TV markets, subscriptions in North America has been declining rapidly over recent years as more and more consumer decide to cut the cord. This report examines the dynamics of the North American pay TV market.
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