• Subscribe
  • Advertise
    • Media Info
    • Terms & Conditions for Advertisers
    • Mechanical Data

Broadband TV News

Independent. Since 2003

  • Home
  • News Line
    • Central & East Europe
    • People
  • TV
    • On Demand/VOD
    • IPTV
    • Cable
    • Satellite
    • Terrestrial
    • Distribution
  • Business
  • Tech
  • Columns
    • Chris Dziadul
    • Julian Clover
    • Robert Briel
  • Events
    • Events Diary
    • BTN Events
    • Events Coverage
    • Submit the details of your event
  • Features
  • Resources
    • White Papers

Netflix ad revenues in Western Europe to exceed US

August 25, 2022 09.45 Europe/London By Chris Dziadul

Western Europe is forecast to generate annual revenues of $1.9 billion for Netflix from advertising by 2027, more than the US and almost as much as North America’s $2.1billion when Canada is included.

According to a new report by Ampere Analysis, an additional $841 million will be earned from ad tier subscription fees in Western Europe, compared to $1 billion in North America.
Ampere believes that Netflix in Western Europe will experience an increase in ARPU as a result of the launch of the ad tier. Specifically, it predicts that 2023 ARPU will be 4.9% higher than without it, rising to 8.6% higher by 2027.

Western European viewers have the highest price sensitivity among Netflix’s customers which combined with relatively high advertising rates on a Cost per Thousand (CPM) basis makes advertising in the region a strong opportunity for the streaming giant.

According to Ampere’s report, 19.3% of Netflix users in W Europe will view content via the ad tier by 2027, most of them from the existing customer base. The ad tier will stabilise this saturated region. Ampere estimates a subscriber growth (with ad tier) in Western Europe of 1.8% above a subscription-only model. A relatively strong increase in the value of advertising-supported customers will boost the overall revenue gain.

Globally, Netflix will earn $5.5 billion in annual advertising income by 2027, boosted to $8.5 billion a year by ad tier subscription fees. The launch will see Netflix earn $2.2 billion more by 2027 than it would with purely a subscription-only model, driven by an ARPU uplift combined with a modest increase in the overall subscriber base. Ampere estimates that total customers will be 3.2% higher than without an ad tier.

Commenting on the findings of the report, analyst at Ampere Analysis Ben French said: “Very strong advertising rates for streaming in Western Europe will contribute to a significant uplift in the value per customer for those taking the ad tier. Although the overall boost to subscriptions is predicted to be modest in the region, this increased customer value will see Western Europe exceed the value of the US market by 2027″.

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: Editor's Choice, Newsline, Platforms, SVOD, Top Story Edited: 26 August 2022 13:16

Avatar photo

About Chris Dziadul

Chris is our Central & East Europe Editor. You can talk to Chris on Twitter @chrisdziadul or by email at cdziadul@broadbandtvnews.com

Latest News

  • Giga Europe prepares for the busy hour
  • England Hockey launches dedicated streaming service
  • Simply.TV provides YouSee with an improved UI and UX experience
  • New Total TV advertising measurement to be launched in Finland
  • Virgin remains top of Ofcom complaints league

Free Ebook

Whitepaper: Why Wi-Fi 6 is Key for ISP Success

Wi-Fi 6 and Wi-Fi 6E client devices are entering the home in an unprecedented way, surpassing 50% market share since their introduction in 2019 (compared to four years for Wi-Fi 5). … [Download the eBook...]

Q & A

Q&A with Przemyslaw Frasunek, Redge Technologies

Broadband TV News speaks with Przemyslaw Frasunek, the CEO of Redge Technologies, about the CEE region OTT landscape and the most effective video security solutions.

Broadband TV News

  • Subscribe
  • About us
  • Contacts
  • Logos & Pictures
  • Privacy Policy
  • Terms and Conditions

Advertising

  • Media Info
  • Terms & Conditions
  • Mechanical Data
  • Video Services

News

  • Latest
  • Central & East Europe
  • TV
  • Tech
  • Streaming
  • Cable
  • Satellite
  • Terrestrial
  • IPTV
  • Business
  • People

Events

  • Events Diary
  • BTN Events
  • Submit the details of your event
  • Media Meet & Greet

Broadband TV News

PO Box 499
Cambridge
United Kingdom
CB1 0AH
news@broadbandtvnews.com

Connect with Us

 

Copyright © 2023 Broadband TV News LLP · Log in

 

Loading Comments...