The streaming-video giant has repeatedly said it will not introduce advertising. But ads could be a lucrative source of revenue.
This story requires our BI Prime membership. To read the full article,Netflix has resisted introducing advertising to its platform, but it could be missing out on a lucrative source of revenue.
Netflix could bring in $1.3 billion per year in advertising revenue by 2021 from adding a free tier of programming that features advertisements in the US, Instinet estimated in a Jun. 28 note. About 70% of that revenue, or $700 million, would likely be profit."Hulu has proven that there is demand for an ad-supported model," the note said.
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