Netflix is going to become a significant advertising player in the coming years, according to JPMorgan.
He estimates that the company's advertising revenue, excluding subscriptions, will reach at least 10% of total revenue in 2027.
Looking ahead, JPMorgan expects the company to reach critical scale across each ad market next year.
To date, Netflix has about 278 million global subscribers, and its ad tier has generated more than 45% of all signups in ad markets.
Netflix launched its ad-supported plan in November 2022 to increase revenue and subscriber count after losing subscribers for the first time in more than 10 years .
Persons:
Doug Anmuth, Anmuth
Organizations:
Netflix, JPMorgan