The success and value of an AVOD platform depends on more than just the size and growth of the audience. How much time they spend streaming also matters. And as the AVOD landscape becomes more competitive, platforms like Netflix will need to focus on user experience to keep viewers watching, writes Joel Cox, co-founder and SVP of strategy and innovation at Strategus.
Flexibility to innovate is part of the reason Netflix teamed up with Microsoft – but the potential of the match goes beyond ads. With studio costs for original content soaring and subscribers willing to drop subscriptions based on the attractiveness of a content library, a marriage with the owner of Xbox offers scope for diversification far beyond ad dollars, writes Joseph Lospalluto, US country manager of ShowHeroes Group.
Netflix’s biggest hope for its imminent ad tier is increasing revenue not from ads themselves, but by attracting new sign-ups with a cheaper subscription option. It chose Microsoft as its ad sales partner for flexibility in building out the tech, and it hopes new plans for password sharing enforcement will help keep up subscriber monetization, too.
The debate following Netflix’s recently released Q1 results illustrates the need for a less binary perspective on advertising vs. subscription models, writes audience and data strategy consultant Alessandro De Zanche.
Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here. Borking Google’s Privacy Pitch Judges and regulators have narrowly interpreted the consumer welfare standard – the mechanism that’s dictated U.S. antitrust enforcement for 40 years – so that a monopolistic business practice must be shown to directly affect consumer pricing. But that standard has […]
The day has finally come – Netflix is considering ads after it lost 200,000 subscribers in Q1, the streamer’s first subscriber loss in a decade. It won’t be easy, but Netflix will need to find a way to keep customers (and their wallets) satisfied. Ads will be a slow rollout that Netflix hopes to phase in within a year or two, CEO Reed Hastings said on Tuesday’s earnings call.
