As streaming companies have found, NFL games are a lucrative opportunity to increase revenue streams. Users pay to watch the games while advertisers are willing to pay for airtime during the broadcasts. However, for Netflix, the advertising potential for their two Christmas games may not be as significant as expected.
According to Brian Steinberg of Variety.com, Netflix may face challenges in attracting the level of advertising revenue they hoped for. The company is reportedly paying $75 million each for the Ravens-Steelers and Texans-Chiefs games and may need to adjust their expectations if they can’t sell 30-second ads for up to $400,000. One issue is that Netflix wants to sell advertising packages that include ads for other programming, which has not been well received by potential advertisers.
As Netflix navigates the complexities of advertising sales for NFL games, they may need to prioritize maximizing revenue potential over satisfying their specific advertising requirements in order to make the most of this opportunity. Ultimately, the success of Netflix’s NFL game advertising will depend on how flexible they can be in their approach and whether they can find a way to appeal to both users and advertisers alike.
