Netflix (NASDAQ:NFLX) shares are up around 1.5% on Tuesday following the company's announcement of a successful close to its 2024 Upfront negotiations.
According to the streaming giant, the Upfront negotiations saw a 150% increase in upfront ad sales commitments compared to last year.
This significant growth aligns with Netflix's expectations and reflects strong confidence from advertisers across key sectors, including CPG, Tech & Entertainment, Auto, QSR, and Retail.
The streaming giant said it secured deals with all major holding companies and independent agencies. In addition, it closed partnerships for a number of upcoming films and series, including Squid Game, Wednesday, Outer Banks, Happy Gilmore 2, Ginny & Georgia, and Love is Blind as well as deals around highly anticipated live events, including WWE Raw, and the Christmas Day NFL games.
"Our advertising clients remain excited about our highly engaged audience and the variety and quality of our programming," said Netflix.
They explained that Season 3 of "Bridgerton" attracted multiple international on-screen title sponsors like L'Oreal, Amazon Audible, and Stella Artois.
Moreover, Netflix recently partnered with major brands such as LVMH, Google, and Rakuten for the return of "Emily in Paris."
Looking ahead, Netflix plans to expand its ad tech capabilities with new ways to buy and measure impact.
The company is set to test its in-house ad tech platform in Canada this November, with a global launch anticipated in 2025.
"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," added Netflix. "We'll continue to improve the Netflix ads plan."
This strong performance in the upfront market is seen as a positive indicator for Netflix's growing influence in the advertising space.