Netflix’ business model has been hailed and wondered about in equal measure. The streaming giant has repeatedly said that it will not introduce a cheaper (or free) version that includes adverts. This is markedly different from many other platforms, including technology competitors like YouTube and Spotify.
For TV and film companies, it may point toward some of the changes that are likely to be underway. While Netflix does not intend to include adverts, this is not the same as it not looking, or allowing producers to look at, different revenue streams. One of the most obvious is product placement in the films and series it commissions.
In series like "Stranger Things" and films like "To All the Boys I've Loved Before," Netflix partners with household names like Coca-Cola and Subway through novel marketing tie-ins and merchandising deals.
Next on the menu could be increased in-viewing product placement, which generated US$20.6 billion in revenues across, films, TV shows and music videos in 2019.
Companies are busy working on solutions that could increase that. One example is the UK company Mirriad. While still early in the process, the company’s products could enable advertisers to add products to films and tv series (want your product to appear on the drinks rack in Rick's Cafe in Casablanca? Now it can).
US-based Ryff takes that one step further. The company’s technology enables product placement targeted at individuals and changes depending on who is watching.