Netflix initial ad commitments grow as NFL and Squid Game boost appeal By Reuters

(Reuters) – Netflix (NASDAQ: ) saw a more than 150 percent increase in initial ad commitments for the year, the streaming giant said on Tuesday, thanks in part to National Football League (NFL) games coming to the platform on Christmas. .

In its second year of initial negotiations — in which networks and media companies aim to secure advertising commitments for future shows — Netflix has successfully closed advertising deals with all major holding companies and independent agencies.

The California-based company has secured partnerships for several high-profile properties, including the popular TV series “Squid Game” and “Wednesday,” as well as the upcoming film “Happy Gilmore 2.”

It has also closed deals for live events, including WWE Raw and NFL Christmas games.

As competition heats up in the streaming space, major players like Warner Bros Discovery’s (NASDAQ:) Max and Walt Disney (NYSE: )’s Disney+ has also turned to ad-supported plans and streaming packages to drive growth.

Streaming services are increasingly investing in sports content to attract a wider, younger audience and more advertisers willing to pay for premium live sports content.

Facing a saturation of subscriber growth in the United States, Netflix has strengthened its advertising business, although it does not expect the business to become a main driver of revenue growth until at least 2026.

The company reported last month that its ad tier membership grew 34% in the second quarter.

Netflix introduced an ad-supported service tier in November 2022 as it sought to offset the rising costs of creating original content and licensing deals to keep viewers on the platform.

The cheaper, ad-supported plan reached 40 million monthly active users globally in May.