LONDON — What if Netflix started running ads?\u00a0It is a topic that has previously been debated here on Beet.TV<\/a>, with one exec betting: “They\u2019re going to have to start to deploy some type of advertising model to recoup some of the revenue that they\u2019re spending on this programming.”<\/p>\n A\u00a0new thorough analysis has shed some hard light on\u00a0the possible impact to the subscription VOD service.<\/p>\n Ampere Analysis<\/a>‘ report, Commercial Gain: If Netflix Moved Into Advertising<\/a>, finds:<\/p>\n “At current consumption and subscriber levels, a pre-roll model could make Netflix an additional $270m per quarter<\/strong>, assuming an $15 average CPM. This equates to an aggregate $1.6 billion in quarterly subscription revenue.<\/p>\n “By contrast, a full broadcast-style ad-load could make Netflix nearly $2 billion per quarter<\/strong>, assuming a CPM average of $8.<\/p>\n “Netflix would have to be very careful in managing such a process, however, as its customer base has indicated sensitivity to advertising. Low-level churn could wipe out financial gains<\/strong> from a pre-roll model, while heavier churn from a full ad-load would combine with a higher cost-base to result in minimal positive impact on\u00a0the bottom line.”<\/span><\/p>\n<\/blockquote>\n