![]() While it will take some time to grow our member base for the ad tier and the associated ad revenues, over the long run, we think advertising can enable substantial incremental membership (through lower prices) and profit growth (through ad revenues),” Netflix said in the Q2 earnings letter. “Over time, our hope is to create a better-than-linear-TV advertisement model that’s more seamless and relevant for consumers, and more effective for our advertising partners. COO and chief product officer Greg Peters has confirmed that, at least initially, Netflix ads will be sold exclusively by Microsoft. Last month Netflix also announced a pact with Microsoft to serve as its exclusive advertising partner. ![]() In announcing Q2 earnings, Netflix told investors that the ad-supported plan will first be available “in a handful of markets where advertising spend is significant,” which presumably includes the United States. ![]()
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