Video streaming behemoth Netflix is employing more billboard advertisements to further overpower its competitors in today’s fierce battle for high-caliber talent and online viewership.
The streaming service provider, famous for “The Crown” and “Stranger Things,” is set to line West Hollywood’s famous Sunset Strip with its own 35 billboard advertisements.
With an advertising budget of $2 billion, using billboards is among the marketing agenda of Netflix this year, expecting its 125 million global subscriber base to further skyrocket.
The company has decided to purchase half of Los Angeles-based Regency Outdoor Advertising’s assets for $150 million, focusing on Sunset Strip. The deal is expected to be completed this month.
Netflix is already a prominent billboard advertiser in the sunny and popular section of Sunset Boulevard known for its nightclubs, restaurants, rock clubs, boutiques, and its vast array of large and flamboyant billboards.
In addition to the Regency marketing displays in the area, Netflix is also interested to own ad boards close to the Dolby Theatre, the celebrated home of the Academy Awards.
As the video streaming giant intends to release over 700 films, TV series, and other original content this year, it is highly interested to show its dominance as a major Hollywood distributor and producer.
Netflix’s target of achieving more exposure through the employment of more billboards area-wide will make itself more prominent to directors, actors, and creative writers.
Furthermore, upon the deal’s, the marketing strategy will prevent its rivals like CBS Corporation’s Showtime and AT&T’s HBO from renting the advertising spaces.
Gino Sesto, owner and founder of Dash Two, an outdoor and digital advertising firm, said that Netflix will be able to save money with the billboard advertising tactic. After all, rates for this marketing format never rise.
Sesto explained that Netflix would only shoulder the costs of changing the vinyl on the sign and the minimal maintenance fees. In addition, the video streaming company will have more freedom to alter a billboard every mid-month.
According to the latest statistics, Netflix’s worldwide subscriber base now stands at 125 million. By 2020, major provider of consumer and market data, Statista, forecasted that 24.4 million Netflix subscribers will be from Brazil alone, one of the most promising markets for the streaming provider.
Moreover, Canada, the United Kingdom, Germany, and Mexico will continue to be of strategic importance for Netflix. In May, Bank of America’s Merrill Lynch predicted that due to the skyrocketing number of broadband internet subscribers in global markets, Netflix will have a subscriber base of over 360 million by 2030.