The Trade Desk partnering with Netflix for ads

Netflix had a few announcements today, some of which involve a couple of the companies (TTD and CELH) that we follow.

Netflix’s ad supported subscribers has been rising rapidly from 5 million soon after they launched last year, and tripled to more than 15 million in November 2023, then increased to 23 million in January 2024, and now to over 40 million ad supported tier subs today.

They also say that 40% of new subscribers are chosing the ad supported tier, so it seems to still be growing at a solid clip as well.

Some more stats and details from Netflix’s release:

"Advertising Stats:

  • Netflix’s ad-supported plan now has 40 million monthly active users.
  • Over 40% of all signups in Netflix’s ads markets come from our ads plan.
  • Netflix ad-supported members have a higher household income and are younger than linear TV audiences, with a median age of 37.
  • Over 70% of Netflix’s ad-supported members watch for more than 10 hours a month - which is 15 percentage points higher than the nearest competitor according to Nielsen.
    • More than half of Netflix’s ad-supported members watch Netflix for more than 20 hours per month.
  • According to TVision, Netflix’s ad-supported members’ attention is the highest competitively when evaluating a three-hour span.
  • According to EDO Inc., Netflix members are around twice as likely to respond to an advertisement on Netflix compared to other streaming services and linear TV."

When Netflix’s ad tier first launched they had partnered only with Microsoft, which was a surprise at the time. In TTD’s subsequent earnings calls, Trade Desk CEO Jeff Green seemed confident that they would evolve over time and other partners like TTD would eventually get involved.

Well that time is now, as Netflix is now taking it’s platform in-house (I believe similar to how the Disney ad exchange is in house) and they are adding partnerships with The Trade Desk, Google, and Magnite for the buy side.

I’m not fully sure how Magnite fits in since I always thought their business was solely on the supply side, and not the buy side.

Once again, Jeff Green has proven to be quite prophetic in seeing where the industry and the big players were headed and how the Trade Desk would be positioned to benefit and share in the growth when the right time came around.

Celsius

Also, for those of you that own CELH, it was also noted that Celsius is going to be a big sponsor of July’s Mike Tyson vs Jake Paul pay per view fight which is airing on Netflix.

“Celsius will be the first presenting sponsor for the upcoming live Jake Paul vs. Mike Tyson event this July. Brand partners for the fight will have featured placements throughout the broadcast and customized branding inside the ring.”

Here’s a link to the full article:

https://about.netflix.com/en/news/netflix-upfront-2024-the-year-of-growth-and-momentum

-mekong

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Jeff Green is indeed on a roll. In the last 3 months he’s partnered closer with DIS ,landed ROKU, NBC/Paramount and now NFLX

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