Online video advertising: three times more revenue than SVOD in 2027

According to the latest analysis from research firm Omdia, over the next five years, online advertising revenue will nearly double, from $190 billion in 2022 to $362 billion in 2027.

Maria Rua Aguete, Senior Director of Research at Omdia, said: “Netflix is expected to generate just under a quarter of its revenue from advertising by 2027 in the United States. With SVOD growth expected to rise from $86 billion in 2022 to (Editor's note: only) $118 billion in 2027, it's no surprise that all major SVOD services, including Netflix, want to participate in this growth”.

Netflix: 4 minutes of advertising/hour like HBO Max

Omdia estimates that by 2027, nearly 60% of Netflix subscribers worldwide will have subscribed to a cheaper offer than those currently offered, funded by advertising (see our Netflix news with ads for the majority of subscribers in 2027).

Omdia expects Netflix to cap in-stream video ad loads (within content) and refrain from introducing ads in the UI to maintain the premium customer experience. According to some reports, Netflix intends to keep ad load below 4 minutes per hour. The same proportion as HBO Max, but lower than all other hybrid (advertised) streaming services in the United States.