Streaming companies have found NFL games to be a lucrative opportunity to increase their revenue streams. Users pay to watch the games, while advertisers are willing to pay for airtime during the broadcasts. However, for Netflix, the advertising potential for the two Christmas games they are reportedly paying $75 million each for (Ravens-Steelers and Texans-Chiefs) may not be as significant as expected.
According to Brian Steinberg of Variety.com, Netflix may face challenges in attracting the level of advertising revenue they hoped for. The company is facing resistance in selling 30-second ads for up to $400,000, as advertisers are not convinced of the value. One issue is that Netflix wants to sell advertising packages that include ads for other programming, which has not been well received by potential advertisers.
As Netflix navigates the complexities of advertising sales for NFL games, they may need to adjust their expectations and be more flexible in order to attract advertisers. Ultimately, Netflix may need to prioritize maximizing revenue potential over satisfying their specific advertising requirements in order to make the most of this opportunity.