Inside The Stream Netflix’s Ad Tier Gains, TV OS Updates, Fubo Ingests ESPN
Oct 10, 2025
Netflix is making strides to balance revenue between ad-supported and ad-free users. One host shares a positive experience with Netflix's ad load compared to traditional TV. The Trade Desk's Ventura TV OS proves valuable for DirecTV, enhancing viewer experience. Meanwhile, Amazon is transitioning to a new OS, Vega, to streamline app functionality. Fubo is making waves by ingesting ESPN content into its platform, bringing on-demand sports closer to fans. Tune in for insights into the changing landscape of streaming and advertising.
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Ad Tier Closing The ARPU Gap
- Netflix's ad tier could nearly equal ad-free ARPU if CPMs stay $20–$30 and fill rates are closer to realistic levels.
- At scale (≈94M MAUs) that implies roughly $8–$9/month from ads, closing much of the $10 gap.
CPM And Viewing Math
- Using 2 hours/day viewing and 4–5 minutes of ads per hour yields 240–300 ad impressions/month per person.
- With $20–$30 CPM that math implies about $9–$17/month per subscriber at 100% fill.
Question Low Fill-Rate Assumptions
- Treat reported fill-rate estimates (e.g., 45%) skeptically and test with real viewing data.
- Expect realistic fill to be higher and factor that into revenue forecasts.