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Netflix ‘costs TV networks billions in lost advertising revenue’

New report suggests SVoD platform takes $3-6 billion away from networks each year

Netflix costs TV networks between $3-6 billion in lost revenue each year according to a new report from nScreenMedia.

The report says ad revenue is at risk as viewers migrate more of their viewing to ad-free services like the streaming platform.

According to the report, the average US Netflix subscriber misses out on seeing around thirty-five 30-second commercials per day – amounting to almost nearly 2 billion ad views per day across all of Netflix’s American subscribers.

In a year, the average American Netflix subscriber misses 5,753 ads during prime-time viewing and 7,032 ads during non-prime time.

The research suggests Netflix viewing has removed between four and eight per cent of total US TV advertising, which in 2017 totalled $72 billion.