• About
  • Privacy Policy
  • Editorial Principles
  • Why to trust us
  • Contact
Thursday, February 9, 2023
The 24 Hours
  • Home
  • Business
  • Technology
  • Scandals
  • Politics
Morning News
Home Technology

Despite challenges, Netflix says its ad tier is doing well • TechCrunch

admin by admin
January 7, 2023
in Technology
0
Despite challenges, Netflix says its ad tier is doing well • TechCrunch
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

READ ALSO

Global VC firm Partech reaches first close of largest African fund at €245 million • TechCrunch

Startups, here’s how you can make hardware without ruining the planet • TechCrunch

November, Netflix announced Its long-anticipated ad-supported tier that gives customers in select markets, including the US, the ability to offset the cost of their Netflix subscription by allowing them to interrupt their viewing with ad breaks.so consumer electronics show .

During an interview at Variety’s Entertainment Summit CESexecutives said the company was pleased with the debut selection of advertisers and its diversity.

Commenting on the variety of brands participating, Gorman said: “Consumer goods companies, luxury goods companies, automotive companies…[and] retail. We are looking at a wide range. This is also good for the consumer experience, she noted, as viewers aren’t bored with endless car ads. “There’s a lot of variety in advertising, and I think that’s going to continue,” she predicts Gorman.

The interview also touched on early frustrations and concerns about Netflix’s foray into advertising.

Among them is the major backlash the company has received over high advertising rates, calling for what one industry executive called the “Super Bowl.” CPMsHowever, while Gorman justified the pricing, he admitted that ultimately the market will decide what pricing Netflix can get.

“From a supply and demand perspective, premium CPM reflects two things. One is that we didn’t get as many advertisers. Secondly, I think the premium content environment in which the ads run guarantees high CPMs.”

Of course, whether Netflix constitutes a “premium environment” is up for debate.

“I think we are certainly humble and fully aware that we are the top of the market. I’ll tell you,” says Gorman.

Another concern with Netflix’s ad-supported services is what content can contain ads. Because the streamer wasn’t set up as an ad-supported service to begin with, many of its content deals didn’t include his AVOD rights (video-on-demand ads). This meant that Netflix had limited ad inventory and could not even advertise on some of its own “Netflix Originals” without the proper rights included in the deal.

Gorman also addressed this, saying that Netflix is ​​actively working on the licensing issue.

“As we speak, it’s progressing day by day. We’re renegotiating deals we made a long time ago,” she said, noting that the content people see on a regular basis is a “big deal.” Netflix said about 85% to 95% of its content is available on the ad tier in the meantime, Gorman said.

Second, from a business perspective, offering a lower-cost tier could cannibalize Netflix’s existing subscriptions, as customers drop to cheaper tiers at a faster rate that isn’t offset by growth in the advertising tier. There are real concerns, though Gorman downplayed those concerns by saying that Netflix customers have historically stayed on their current plan.

Unfortunately, executives weren’t able to discuss the adoption of ad-supported products as Netflix is ​​gearing up to announce earnings, but said, “We’re happy with the growth we’re seeing.” I got

Netflix ad tiers are currently available in the US, UK, France, Germany, Spain, Italy, Australia, Japan, South Korea, Brazil, Canada and Mexico. The company has no immediate plans to expand, but in the long term it aims to target a larger advertising market. HD) and is limited to streaming from one device. Also, the content cannot be downloaded to your device for offline viewing.

Moving forward, Netflix plans to do a little more than just the typical ads, such as dynamically inserting ads near relevant moments for marketers, or single-show sponsorships. We also plan to allow marketers to target their ads by age and gender.

Tags: challengesNetflixTechCrunchTier

Related Posts

Global VC firm Partech reaches first close of largest African fund at €245 million • TechCrunch
Technology

Global VC firm Partech reaches first close of largest African fund at €245 million • TechCrunch

February 8, 2023
Startups, here’s how you can make hardware without ruining the planet • TechCrunch
Technology

Startups, here’s how you can make hardware without ruining the planet • TechCrunch

February 6, 2023
Meta’s Reality Labs lost $13.7 billion on VR and AR last year • TechCrunch
Technology

Meta’s Reality Labs lost $13.7 billion on VR and AR last year • TechCrunch

February 4, 2023
China’s EV upstart Xpeng ready to take off with flying permit • TechCrunch
Technology

China’s EV upstart Xpeng ready to take off with flying permit • TechCrunch

February 2, 2023
Labor officials found that Apple execs infringed on workers’ rights • TechCrunch
Technology

Labor officials found that Apple execs infringed on workers’ rights • TechCrunch

January 31, 2023
Stripe eyes an exit, Dell bets on the cloud, and Shutterstock embraces generative AI • TechCrunch
Technology

Stripe eyes an exit, Dell bets on the cloud, and Shutterstock embraces generative AI • TechCrunch

January 29, 2023
Next Post
‘There is a lot of pent-up demand’: world awaits return of Chinese tourists

‘There is a lot of pent-up demand’: world awaits return of Chinese tourists

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

Is ChatGPT a ‘virus that has been released into the wild’? • TechCrunch

Is ChatGPT a ‘virus that has been released into the wild’? • TechCrunch

December 10, 2022
Sister Wives’ Robyn Tells Family ‘Leave Me the Hell Out’ of Drama

Sister Wives’ Robyn Tells Family ‘Leave Me the Hell Out’ of Drama

January 9, 2023
Tesla appears to be turning back to radar for its vehicles • TechCrunch

Tesla appears to be turning back to radar for its vehicles • TechCrunch

December 8, 2022
‘What’s the point of buying?’ China’s property woes push young to rent

‘What’s the point of buying?’ China’s property woes push young to rent

December 8, 2022
Chuck Schumer Moves To Isolate MAGA Republicans

Chuck Schumer Moves To Isolate MAGA Republicans

December 8, 2022

EDITOR'S PICK

It Seems Like Trump Is Starting To Realize That He Could Be Criminally Indicted

It Seems Like Trump Is Starting To Realize That He Could Be Criminally Indicted

December 18, 2022
Meta shares soar on resilient revenue and $40bn in buybacks

Meta shares soar on resilient revenue and $40bn in buybacks

February 2, 2023
Joe Biden warns China over threats to US sovereignty in State of the Union address

Joe Biden warns China over threats to US sovereignty in State of the Union address

February 8, 2023
Long Winter Tops to Wear With Leggings

Long Winter Tops to Wear With Leggings

January 21, 2023

About

The 24 Hours

The24Hours, our mission is to provide unfiltered, unbiased, fact-based news blog that empowers rather than unsettles.

Categories

  • Business
  • Technology
  • Scandals
  • Politics

Quick Links

  • About The24Hours
  • Contact Us
  • Editorial Principles
  • Why to trust us
  • Privacy Policy
  • Sitemap

Follow Us

  • Facebook
  • Twitter
  • Instagram
  • LinkedIn
  • Privacy Policy
  • Contact Us
  • Sitemap

  • Home
  • Politics
  • Business
  • Technology
  • Scandals

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More

Accept Decline Cookie Settings
I consent to the use of following cookies:
Cookie Declaration About Cookies
Necessary (0) Marketing (0) Analytics (0) Preferences (0) Unclassified (0)
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
We do not use cookies of this type.
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
We do not use cookies of this type.
Analytics cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously.
We do not use cookies of this type.
Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.
We do not use cookies of this type.
Unclassified cookies are cookies that we are in the process of classifying, together with the providers of individual cookies.
We do not use cookies of this type.
Cookies are small text files that can be used by websites to make a user's experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies we need your permission. This site uses different types of cookies. Some cookies are placed by third party services that appear on our pages.
Cookie Settings