Netflix is prioritizing improvements in ad delivery validation, measurement and targeting.

The company believes that advertising could become “at least 10%” of its $30 billion-plus take in annual revenue.

Netflix has generated 7.7 million paid subscribers, well above expectations of 4.6 million.

Hulu, which has a 10-year head start advertising option. About half of Hulu’s membership is now on such ad delivery plan, generating billions in revenue and making the platform dominant in the connected TV space.

Netflix has been deliberate on limiting ads for users, limiting commercial time to just a few minutes per hour. AB InBev, L’Oreal Paris, and NYX Professional Makeup are some of the early companies testing the service.

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