According to a recent forecast by Omdia, 60% of Netflix’s global subscribers will be on the ad-supported tier of the service by 2027. The research company says this change will occur through a combination of new subscribers joining, and the “downgrading” of existing subscribers to the ad-supported tier.
Omdia says it expects Netflix to cap in-stream video ad loads and refrain from introducing ads in the user interface to maintain consumer experience – particularly internationally, where hybrid models are not yet fully established.
Omdia also predicts Netflix will generate 23% of its U.S. revenue from in-stream advertising in 2027, as well as 14% of its global revenue.
Maria Rua Aguete, Senior Research Director, Omdia, said: “Netflix is expected to generate just under a quarter of its revenue from advertising by 2027 in the US. With growth in SVOD expected to increase from $86B in 2022 to $118B in 2027, it comes as no surprise that all the major SVoD services including Netflix want to take part in that growth.”
