Netflix has a ton of original shows coming in 2018 and a massive marketing budget to go along with it, but billboards won’t play quite as big a role in that as originally expected.
According to Reuters, Netflix is paying $150 million to acquire about half of Regency Outdoor Advertising’s assets. Netflix will be getting 35 billboards primarily located on the Sunset Strip in West Hollywood. The deal is expected to close in July.
The revised deal is less than the reported $300 million Netflix was considering earlier this year for a deal to acquire all of Regency.
According to the report, Netflix is open to acquiring more billboards in the future.
When Netflix reported its fiscal fourth-quarter earnings in January, it also revealed a marketing budget of $2 billion to go along with its $7.5 billion to $8 billion programming budget for 2018. The company expects content and marketing spend to be weighted towards the second half of 2018.
“We’re investing in more marketing of new original titles to create more density of viewing and conversation around each title (i.e bigger hit in a nation or demographic). We believe this density of viewing helps on both retention and acquisition, because it makes our original titles even less substitutable. Because we operate in so many countries, we are able to try different approaches in different markets, and continue to learn,” Netflix wrote in an earnings release.