![]() ![]() “So we see the risk is really recession.” ![]() “Even though video streaming is viewed to be a value, leisure thing to do, households have way too many different types of streaming from formidable competitors of Netflix besides them,” Leon said. Kenneth Leon, research director at CFRA Research, warns that there could be more headwinds ahead as consumers could cut back on spending during a recession. In addition to growing competition from rival streaming services, Netflix also faces a challenging global economy. On Thursday, Peters said Netflix also teamed with DoubleVerify and Integral Ad Science “to verify the viewability and traffic validity of our ads” beginning next year. Netflix has partnered with Microsoft on its advertising efforts. “We also believe a lower-cost ad supported version of NFLX arguably taints the NFLX brand and the tech behind successful advertising delivery is very difficult … not to mention NFLX original programming is not optimized for ad breaks,” wrote Wlodarczak in a research note. Jeffrey Wlodarczak, a principal and analyst at Pivotal Research Group, views Netflix’s move into advertising as “defensive not offensive.” Some analysts are skeptical over whether an ad-supported plan will significantly boost customer growth, or if it will cause ad-free customers to downgrade to less expensive plans. “Basic with Ads also represents an exciting opportunity for advertisers – the chance to reach a diverse audience, including younger viewers who increasingly don’t watch linear TV, in a premium environment with a seamless, high-resolution ads experience.” “In short, Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in-between,” wrote Greg Peters, Netflix’s chief operating officer in a statement. ![]() Netflix’s ad-supported plans will launch next month in 12 countries, including the U.S., Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the United Kingdom. Launching its ad-supported plan before Disney+ could give Netflix an edge with courting advertisers.įor customers who opt for ads on Netflix, 15- to 30- second ads will appear before and during their programs. At that time, the cost of an ad-free plan will go up to $11 a month. That’s compared with ad-free HBO Max and Hulu priced at $14.99 a month.ĭisney+ will launch an $8 monthly ad-supported plan on Dec. Netflix monthly ad-free plans range from $9.99 to $19.99. The cost of an ad-free Netflix subscription is the most expensive for any popular U.S. “These audiences have no aversion to watching ads in exchange for free or reduced price content and are prime candidates to turn to Netflix’s new ad-supported tier,” Samba TV Chief Executive and Co-Founder Ashwin Navin told The Times last month. Nine out of 10 adults who don’t have Netflix watch other ad-supported streaming content, according to a recent survey of 2,500 adults by Samba TV and Harris X. and Canada and roughly $2.65 billion in 2026 in that region.Īnmuth said in a research note that given Netflix’s muted subscription growth, “advertising is critical to re-accelerating revenue” and driving more profitability.īy offering ads, Netflix may be able to reach people who aren’t subscribers. Morgan, estimates that the new plans could bring Netflix around $600 million in advertising revenue next year in the U.S. Some analysts believe that Netflix’s move into advertising could increase subscribers, reduce cancellations and provide an additional revenue stream for the company.ĭoug Anmuth, an analyst with J.P. ![]()
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