[Asia Economy New York=Special Correspondent Joselgina] The world's largest video streaming company, Netflix, is set to launch a low-cost service that allows advertisements, drawing significant interest from global companies.
The Wall Street Journal (WSJ) reported on the 19th (local time) that companies wanting to advertise their products on Netflix include Hyundai Motor and Peloton. With 222 million subscribers worldwide, Netflix is a platform that can serve as a major marketing tool for advertisers.
WSJ reported that Hyundai Motor wants to feature its automobile products in some Netflix programs. Angela Cepeda, Chief Marketing Officer (CMO) of Hyundai Motor America, said regarding Netflix advertising, "It is a place we couldn't reach before," adding, "Now we want to get there."
Home fitness company Peloton also expects to use Netflix's personalized recommendation feature to target subscribers most likely to purchase its exercise equipment with precise advertising. Dara Treseder, Peloton's Chief Marketing Officer, praised Netflix, saying, "One of the things Netflix does really well is personalization."
An official from a major advertising industry mentioned that many advertisers are expressing interest in long-term contracts worth millions of dollars with Netflix.
Netflix, which recorded a subscriber decline for the first time in history in the first quarter, is currently partnering with Microsoft (MS) to launch a new ad-supported low-cost subscription service as early as this year.
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