Netflix blew past subscriber growth targets in Q4, and the stock is soaring to record highs

Netflix beat Wall Street estimates (again) by adding 8.3Msubscribers vs. a projection of 6.3M.

Netflix also announced that they plan to increase content spending 14% to $8B from $7B in 2018.

Keep in mind. That annual increase ($1B) is the same amount Facebook has announced it plans to invest in original video content!

More. Netflix: ‘Ad-Supported Internet Video Big Force In The Market’

Flashback. Netflix tests pre-roll video ‘previews’ that are personalized to your interests

The average Netflix user watches 1h, 33m of content per day.

If we assumed a 16-minute ad load per hour (similar to TV), then each Netflix customer could potentially receive 48 30-second spots per day or 336 per week.

At a $25/CPM that would generate $1.20 in ad revenue per user/day or $37.20 per month.

The most expensive Netflix plan is currently $11.99 per month.

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