[eMarketer] Why Netflix Basic with Ads will win advertisers

Despite the Basic With Ads subscription tier being released just two weeks ago, eMarketer is forecasting Netflix will see US ad revenues of $830 million in 2023, growing to $1.02 billion in 2024. It’s an impressive acceleration in ad revenues, but it puts the company behind a few streaming rivals.

According to eMarketer forecast, Disney+, which is set to launch its ad-supported tier on December 8, will have slightly higher US revenues next year at $1.02 billion, growing to $1.19 billion in 2024.

The Walt Disney Co. already had an ad infrastructure through Hulu and ESPN+, while Netflix had to build one from scratch.

Hulu will see $4.25 billion in US ad revenues in 2023, further evidence of the ad revenue opportunity for Netflix if the company can capitalize on it.

The platform needs to sell brands on advertising without detracting too much from its subscription revenues.

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