MNTN CEO Hails WBD's Ad Sales as Potential 'Hidden Gem' for Netflix

Warner Bros. Discovery’s advertising sales, generating approximately $3.8 billion in revenue during the 2024 fiscal year, may represent an underappreciated opportunity for Netflix, according to MNTN CEO Jonathan D. Greenblatt. Speaking at a recent investor roundtable, Greenblatt noted that WBD's ad business—driven by its portfolio of linear and digital platforms including TNT, TBS, and Max—is operating with strong margins and scalable infrastructure that could be leveraged by major streaming competitors. The potential value lies in WBD's ability to deliver targeted ad inventory across multiple screens, with CTV (connected TV) ad revenue growing at a 29% year-over-year rate in Q4 2024. This trajectory positions WBD’s ad tech and data capabilities as attractive assets, particularly as Netflix continues to expand its ad-supported tier. With Netflix’s ad-revenue share expected to reach $1.5 billion annually by 2026, integrating WBD’s proven ad delivery systems could accelerate scale without heavy reinvestment. Market analysts have begun reassessing the strategic implications of cross-platform ad partnerships, especially as traditional broadcasters gain ground in digital engagement. The move would allow Netflix to offload some of the infrastructure burden while accessing higher-value ad inventory tied to WBD’s live sports and premium content—key drivers of viewer attention. Investors are now monitoring how Netflix might structure such a partnership, with speculation pointing toward a licensing or joint venture model. Should the deal materialize, it could reshape competitive dynamics in streaming ad sales, benefiting both companies through enhanced monetization efficiency.