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Netflix NFLX+11.15% stock hit an all-time high Tuesday morning after the streaming pioneer reported that its foray in to advertising continues to be a big success.
Netflix NFLX+11.15% shares hit an all-time high of $711.33 during intraday trading on Tuesday before falling to about $697 in the afternoon. The company’s previous all-time high was $700.99, which it hit in 2021.
The record followed the news that Netflix was able to increase its upfront ad sales commitments by 150% from 2023. This was the media giant’s second year participating in upfront negotiations — deals made ahead of the upcoming broadcast year, which typically starts in fall, through which media companies try to sell the bulk of their ad inventory.
“Our advertising clients remain excited about our highly engaged audience and the variety and quality of our programming,” Netflix said in a press release.
The company said it was able to close several multiple international on-screen title sponsors including Pure Leaf, Amazon AMZN+1.93% Audible, Puig, Booking.com BKNG-0.03%, Stella Artois, and Hilton HLT-0.06% for the third season of Bridgerton.
Netflix also closed partnerships for multiple upcoming movies and TV series including Squid Game, Wednesday, Happy Gilmore 2, and Love is Blind. It also made deals for upcoming live programs including WWE Raw and some NFL games that are set to be streamed on Christmas Day.
Netflix first launched its ad-supported plan in 2022. The number of active monthly users of Netflix’s ad-supported plan skyrocketed 700% — from 5 million to 40 million — between 2023 and 2024, the streaming giant said in May as part of its upfront presentation to advertisers.
Netflix said in July that those plans accounted for 45% of all new signups in markets where the plan is available.
At the time, Netflix touted that it closed over 60 pause ad campaigns — ads that appear when a program is paused — with big brands such as Expedia EXPE-0.51%, Coca-Cola KO-0.40%, Ford F-3.60%, L’Oréal and McDonald’s MCD-0.21%. Netflix will also start testing an in-house ad tech platform in Canada this year before launching it more widely in 2025.