Netflix Saves You From Watching 160 Hours of Commercials Every Year
But how much ad revenue does it lose out on?
According to a report by Cordcutting.com, Netflix saves its viewers from watching 160 hours of commercials per year. The comes as a marked increase over last year’s figures. According to the report, this amount of air-time amounts to over $2.2 billion USD in potential ad revenue (the average 30-second spot on TV costs $112,000 USD). This would make the company’s executives break out in a sweat, were it not for the site’s 47 million US subscribers, whose monthly subscription fees amount to $5.6 billion USD in revenue, and that’s to say nothing of the streaming company’s 34.5 million subscribers elsewhere in the world.
This means that there is little to no incentive for Netflix to sell advertising space, especially since subscribers’ loyalty is largely based on their ability to binge-watch entire seasons of shows, uninterrupted.
The formula speaks for itself however, with Netflix fans patiently awaiting hot upcoming shows like The Punisher.