Advertising on Netflix would boost its average revenue per user
Advertising on Netflix is one way the struggling streaming service can boost its average revenue per user across regions.
- Netflix's average ARPU in the U.S. and Canada is $14.91, according to its latest earnings report.
- "Roku, which offers advertising on its platform, has fewer than half the number of active accounts that Netflix has—but has been able to generate nearly three times the revenue per user," PubMatic CEO and co-founder Rajeev Goel recently wrote in Fortune.
Yes, but: Netflix's ARPU is much higher than Disney's ARPU of $6.32 in the U.S. and Canada. Disney expects the majority of its Disney+ customers will choose its ad-supported plan, CFO Christine McCarthy said at MoffettNathanson's Media and Communications summit this week.