
November marks the start of a new era: Netflix is adding commercials to its content. The current leader of the streaming market reacts to the loss of subscribers by opening the door to the AVoD market with an advertising subscription option. Many of their competitors already offer this choice, which becomes a challenge regarding content and advertising management. In this article, we explain the meaning of AVoD, what pushed Netflix to the advertising market and the challenges of adding commercials to a non-linear platform.
The Netflix advertising era
If life were a comic book, we would say that Netflix adding commercials is the Gallic villa of Asterix falling to the Roman empire. Netflix resisted the push of the AVoD market until July 2022, when it announced a one million subscribers loss. The platform reacted with several actions, like restrictions on sharing accounts. However, the company didn't take the path of weekly content publications as their competitors. In addition, it started spreading rumors of its next step: Netflix is adding commercials.
Is Netflix adding commercials to everything?
Netflix has set one foot into the AVoD market, but not both. We'll explain the meaning of AVoD further and you'll understand this statement. The policy of Netflix adding commercials turned into a basic subscription only in a few countries for 5,49 per month. With this option, users will enjoy content with commercials of 15-30 seconds. According to Netflix, the advertising will have a five-minute limit per hour. The other subscription options are still available, but they are more expensive. You'll have to pay more to be ad-free.
The meaning of AVoD and why Netflix is not that
The meaning of AVoD is Advertising Video on Demand. With this option, the user enjoys the content with commercial insertions that becomes the cornerstone of the platform monetization. Advertising on Netflix won't become that cornerstone: Netflix expects 500,000 new subscribers of this option by the end of 2022, just a drop in a 220 million subscribers sea and a lower number of users that canceled their account in July. That's why the company opted for a mixed model. Other competitors (HBO, Disney + or Prime Video already offering advertising subscription options) also took that path before.
The fight for the advertising cake
According to Rethink Research, AVoD will represent a 91$ billion business. Only in 2022, the market expects a 50% growth only in the United States. Obviously, everyone wants to take a piece of cake. Netflix advertising CPM rates are expected to be around 60 and 65 dollars. In other words, that would be the price for a commercial to reach 1,000 people. If we multiply this number by the potential number of subscribers, it becomes clear that Netflix's income will grow with this decision.
Content is still king
However, not all news is good for Netflix. Some predictions indicate that Disney will become the king of streaming platforms in 2027. According to Business Wire, the key to this overcome is in India. If the Mickey Mouse company retains the rights to the Indian Cricket League, it will also have a wave of users that watch it. This proves that despite the evolutions of the market and formats, the content and how we publish it on our platform still lead the way.
Netflix advertising and the non-linear commercials challenges
Netflix and the rest of the platforms that will take the AVoD path must now face the challenges of adding commercials to their non-linear schedule: the automation of commercials, the CPM rate calculation, etc. All these, combined with the control and content planning they still have to offer to their clients. Imagine that we can face all these challenges using a Broadcast Management System. For us, it's not a dream; it's a reality with a name: VSNCrea.
Thanks to its Commercials module, the VSN's BMS allows any non-linear platform to manage all its monetization and advertising in the same program where it can schedule and plan the release of all its content. From this module, you can select the seconds of the spot for the pricing and the type of Ad Rate cost and assign prices to blocks in the Ad Rates with simple and easy control from a table view. Furthermore, we can control the performance of our content and advertising with the customized advanced analytics reports provided by the system. All these, while we manage our catalog and plan the publication of content in the same system: users can simultaneously schedule the publication of content for non-linear channels, social media and video platforms like YouTube. This publication can be done manually, sequentially, automatically or with a programmatic episode, based on the content's broadcasting rights. If you want to learn more about VSNCrea, do not hesitate to check the product information or ask for a demo with our professionals.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
20/03/2026
Net Insight will introduce a JPEG XS solution for full IP environments at NAB Sh...
20/03/2026
LTN has expanded its technology partnership with Harmonic ahead of the FCC's...
20/03/2026
Solid State Logic will preview SSL Live V6.2 at NAB Show, booth C6907. The softw...
20/03/2026
FUJIFILM North America Corporation's Optical Devices Division has announced ...
20/03/2026
FUJIFILM North America Corporation's Optical Devices Division has announced ...
20/03/2026
TrueVisions NOW, a streaming platform in Thailand and part of the TrueVisions Group, has selected Bitmovin's Observability product for real-time video analy...
20/03/2026
Marquee Sports Network has announced distribution agreements with Hulu + Live TV and Prime Video ahead of the 2026 MLB season.
Marquee Sports Network is now av...
20/03/2026
FOR-A will exhibit software-defined and AI-driven solutions at NAB Show 2026, bo...
20/03/2026
TNA Wrestling and Eurosport India have entered into a multi-year exclusive progr...
20/03/2026
When Athletes Unlimited brought its professional women's basketball season t...
20/03/2026
In this craft interview, Rick Bernier reflects on a career that has taken him to...
20/03/2026
Lawo will announce a new product ahead of NAB Show 2026 in Las Vegas, where it w...
20/03/2026
Ratings Roundup is a rundown of recent rating news and is derived from press rel...
20/03/2026
Major League Baseball (MLB) has named Polymarket as its Official Prediction Mark...
20/03/2026
With AI now the industry-wide priority, Big Tech companies are uniquely position...
20/03/2026
In-venue and creative video staffers at the professional and collegiate level ha...
20/03/2026
Abundant player mics and RF and other ground-level cameras will be used to captu...
20/03/2026
Regional site will also receive big boost in production resources, including on-...
20/03/2026
By Jessica Herndon
One of the most exciting things about the Sundance Film Fest...
20/03/2026
In 2021, we launched EQUAL, a program designed to address an industry reality that persists: Women artists, songwriters, and producers too often face fewer oppo...
20/03/2026
BTS' long-awaited fifth studio album, ARIRANG, is finally here. To celebrate...
20/03/2026
A new era for Kenia Os has arrived, and Spotify marked the moment by putting fan...
20/03/2026
Una nueva era para Kenia Os ha llegado, y Spotify marc el momento poniendo a lo...
20/03/2026
Combines sampling & physical modelling
Sound Magic have announced the launch of a comprehensive virtual drum instrument that's been designed to cater to...
20/03/2026
How much difference should mastering make?
In our latest Mix Rescue feature, SOS Editor in Chief Sam Inglis revisits a project from back in 2019, carrying o...
20/03/2026
Feast for cycling fans as SBS extends road cycling broadcasts to include all Gra...
20/03/2026
In this blog, Laura Rognoni reflects on key discussions from the Connected TV World Summit in London, where NAGRAVISION hosted a panel on content discovery and ...
20/03/2026
After a series of increases, February brought the first slowdown in time spent in front of TV sets in a long time. While traditional television was losing viewi...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
60 years of audio innovation, driven by the people who use it...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
Colombia's Icesi University and WSDG are proud to announce Ronald David Reyes as the recipient of the 2025 WSDG Excellence Scholarship, awarded to an outsta...
20/03/2026
Avid today celebrated the filmmakers, editors and sound teams that worked with Avid Media Composer and Pro Tools to create the vast majority of this year'...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
20/03/2026
Real-time 9:16 AI-Generated Autocropping; Software-Defined Station in a Box; and Software Switcher with Unlimited Layering Are Among Show Highlights
For the fi...
20/03/2026
Signiant Showcases New Content Innovations Driving Visibility, Access, and Actio...
20/03/2026
Caffeine Relies on DaVinci Resolve Studio for End to End Post Workflow
Brie Clayton March 19, 2026
0 Comments
Blackmagic Cloud helps Mexican post faci...
20/03/2026
Friday 20 March 2026
Sky Extends Saturday Night Live UK Run to Eight Shows
Ahead of Saturday Night Live UK's launch tomorrow (March 21), Sky has confirmed...
20/03/2026
It's time to play The Money List! Baz Ashmawy is back at the helm as the qui...