Subscription streaming video leader Netflix on Tuesday said its upfront advertising commitments more than doubled this year. The news drove Netflix stock to a record high.
Netflix reported that its second year of upfront negotiations with advertisers generated a 150% increase in ad sales commitments compared with last year. The ad commitments included spots for consumer products, technology, entertainment, auto, retail and fast-food restaurants.
In a blog post, Amy Reinhard, president of advertising at Netflix, said the ad sales commitments were in line with company expectations. However, Netflix did not cite specific dollar figures.
Netflix, which launched its ad-supported service option in November 2022, said it closed advertising partnerships for the upcoming seasons of "Squid Game," "Wednesday," "Outer Banks," "Ginny & Georgia," and "Love Is Blind," in addition to live events such as "WWE Raw" in 2025, and this year's Christmas Day NFL games.
Meanwhile, Netflix is "looking forward" to the launch of its in-house ad tech platform, which will be tested in Canada in November and launched globally in 2025, Reinhard said.
Netflix Stock Breaks Out On Ad Report
"Over the last few months, we've hit great milestones for our ads business, including closing another successful Upfront market, building and implementing an expanded programmatic suite, enhancing our global measurement capabilities, and securing impactful global ad campaigns," Reinhard wrote.
She added, "We'll continue to improve the Netflix ads plan to ensure our members are delighted by the experience while simultaneously creating solutions that deliver results for our marketers, putting brands at the center of the best shows and films in the world, to a highly valuable and engaged audience."
On the stock market today, Netflix stock rose 1.5% to close at 698.54. Earlier in the session, Netflix stock hit an all-time high of 711.33. That eclipsed its previous high of 700.99 from November 2021.
With the move higher Tuesday, Netflix reached a buy point of 697.49 from a late-stage cup base, according to IBD MarketSurge charts.
Further, Netflix stock is on the IBD 50 list of elite stocks.
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