I’m curious if anyone might know the answer to this. Do any NFLX reality shows, ones that are owned by NFLX, carry promotional segments? As an example, say there is a competition show involving Pepsi - pretend there is a segment where Pepsi products are featured and are integral to an event - and Pepsi pays for that placement. Presumably, that’s fine to do, even on a premium subscription with no ads?
I ask because I am wondering if this might be a feasible way to get advertising revenue from non-ad tier subscribers. And if so, would that product-placement revenue be counted toward the ARM? Or, would it just be an offset to content cost?
Going forward, with all the special sports events and the like, I would think advertising within the event would be necessary. I don’t follow sports, at all, but I am pretty sure there are digital ads in sports, correct? Am I right that sometimes a white line on a football field might turn into a Gatorade logo, for example? Can NFLX do that in its non-ad tier?
I think too NFLX will need to qualify the non-ad tier by saying certain shows may need advertising because of streaming rights (some streamers have done this). Would all live events already have commercials already? Can anyone tell me if that Tyson fight had ads on the non-ad tier when it was live?
If some of this is indeed permissible, I am wondering if there will be a bigger mix of reality shows on NFLX…even if NFLX doesn’t own the show, can it take a cut of product placement sold by producers? I am wondering how NFLX can maximize ad revenue even from premium subs.