One of the big selling points to a service such as Netflix or Amazon Prime Video is the ad-free nature of the service. You can enjoy your show without the need to stop and watch an ad; however, that does not mean there are not ads in Netflix and Amazon Prime Video shows.
Recently CNBC talked with someone who is close to how Netflix and Amazon sell ads inside their originals. According to CNBC, companies such as GM and Dunkin’ Donuts pay for the rights to have their products placed prominently inside shows like “House of Cards.”
According to CNBC and Branded Entertainment Network, all Amazon shows have at least one placement and 75% of all Netflix shows do.
So how much does Netflix get for these ads? Apparently it can cost anywhere from $50,000 to $500,000 per episode to have your brand prominently shown on Netflix or Amazon Prime Video.
Doing ads like this helps services such as Netflix produce a ton of content without the need to raise prices. Now they can drop millions into new shows and recover part of the cost before the shows go live on the service.
It does not stop there. Services such as BEN also place ads on network TV, YouTube Channels, and more.
The following shows some examples of how Netflix, Amazon, and others slip products into their content:
What do you think about this? Are you happy to see the costs stay low? Leave us a comment and let us know what you think.
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