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How Netflix Makes Money Without Advertising

These past few months we’ve probably become more familiar with Netflix than we care to admit. Dead to Me Season 2? Check. Never Have I Ever? Yep. Too Hot to Handle? …of course not. One thing you haven’t seen on Netflix, however, is advertisements.

But with so many eyeballs, many industry experts and marketers say Netflix’s aversion to advertising is a huge mistake. The company’s CEO says its focus is on making their members happy. While this may be true, the company refuses to play a losing game with Facebook and Google. So, how does the streaming giant make money? 

  • Subscriptions. Netflix reported 182 million subscribers in Q1 of 2020 – you do the math.
  • Marketing partnerships. These partnerships,starting at a low price of $300k, include things like strategic product placements and licensing Netflix-owned characters in commercials or other promotions. The streaming platform focuses its efforts on personalized, high-value cross-overs like the Subway campaign last year for Netflix show, “Green Eggs and Ham”.

Read more on Netflix’s say-no-to-advertising business model.

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