During a recent Cannes Lion panel, Linda Yaccarino, chairwoman of advertising sales and client partnerships at NBCUniversal, parent company of CNBC said, “When you have to make more programming that’s not guaranteed to be a hit, you have to spend more money, you have to build your brand, you have to help the consumer discover your stuff — the price will go up for the subscription, and it would be logical to mitigate those increases to take ads.”
If Netflix did decide to incorporate commercials, just how they would do it is anyone’s guess. It’s possible they would stick to the traditional tried-and-true structures and formats, but maybe they would choose to innovate.
Peter Naylor, head of ad sales at Hulu said during the panel, “The future of ad-supported media does not resemble what we’re doing today in terms of ad load or even ad shape. It can be interactive advertising or nonintrusive advertising. I think you’re going to see a lot of innovation from all these new OTT providers because we’re allowed to. We’re not married to the clock. Fifteen and 30-second ads were a product of linear TV. When everything’s on demand and served through an IP address, the ad experience is going to dramatically improve.”