Will people pay for a cheaper Netflix with ads?


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Times reporter Ryan Faughnder is on paternity leave and returns next week; Wendy Lee replaces.

only three a few years ago, Netflix brushed off advertisers hoping to market brands on the world’s largest subscription streaming platform, calling it “wishful thinking.”

But as Netflix shares decline and investors increase pressure for the company to continue expanding its customer base, ads on Netflix will soon become a reality.

Netflix has announced plans to launch a low-cost advertising plan in early 2023 in select markets and has hired two former Snap executives to lead its efforts.

The ads sell for around $65 per thousand viewers and can be targeted to the streamer’s top 10 shows, a specific country or certain genres such as dramas, ad buyers said at the wall street journal. Netflix is ​​aiming for four minutes of ads per hour, the Journal reported, citing information from ad buyers.

Netflix called the report “speculative.”

“We are still in the early days of the decision to launch a cheaper, ad-supported tier and no decision has been made,” the streamer said in a statement.

Netflix’s foray into advertising represents a sea change in its overall subscription sales business model. Some skeptics see it as a sign of desperation that the once dominant streaming giant is losing market share to rivals such as HBO Max, Amazon and Disney+.

“Virtually everyone we talk to in Hollywood, outside of Netflix employees, is gloating about Netflix’s stock price crash over the past nine months, as well as Netflix’s loss of religion around advertising. (which many see as a desperate attempt to ‘save’ Netflix),” said a recent report by New York-based research firm LightShed Partners.

While a stunning start, Netflix’s decision to embrace advertising in some ways was inevitable. HBO Max and Hulu offer their own ad-supported plans for less. There are also a growing number of free, ad-supported streaming services, including Amazon Freevee, Pluto TV, Tubi, and the Roku Channel.

No one knows if Netflix can make enough money from ads to offset slowdowns in subscriber growth. But it’s clear that at least some consumers would welcome the change.

Lower-cost Netflix subscriptions with ads could entice more people to stick with the streaming service if they’re looking to save money.

Consumers are already interested in Netflix with ads, according to a recent survey of 2,500 American adults by Samba TV and Harris X released Tuesday.

Among adults surveyed, 45% of Netflix users said they would upgrade to an ad-supported plan if it cost half the price of their current subscriptions and offered five minutes or less of ads per hour. said Samba TV.

“Advertisers aren’t the only ones eagerly anticipating Netflix’s new ad-supported tier rollout,” Samba TV CEO and co-founder Ashwin Navin said in a statement. “There seems to be a strong appetite for an advertising model from both current Netflix users and, more importantly, those who have never had or have already canceled a Netflix subscription.”

Navin said nine out of 10 adults who don’t have Netflix watch other ad-supported streaming content.

“These audiences have no aversion to watching ads in exchange for free or discounted content and are the best candidates to switch to Netflix’s new ad-supported tier,” Navin said.

Netflix hasn’t revealed how much it will charge for its new service. HBO Max and Hulu charge $9.99 and $6.99 respectively for their ad-supported monthly plans. (Netflix’s ad-free subscription plans range from $9.99 to $19.99 per month.)

Some analysts agree that new ad-supported plans could increase customer numbers in international regions such as Latin America.

“There seems to be more room to grow in those countries because they don’t have close to the audience share they have in the US, so I think that will help there,” said Ross Benes, principal analyst at market research firm Insider Intelligence.

Stuff we wrote

(Illustration by Nadia Radic/For The Times. Photos by NBC Universal; JPI/Days of Our Lives; Chris Haston/NBCU Photo Bank/NBCUniversal via Getty Images)

— The Golden Globes awards show returns to NBC. The Hollywood Foreign Press Association. touted the show’s return after carrying out a series of reforms following an LA Times investigation by my colleagues Stacy Perman and Josh Rottenberg.

– As more and more shows like the soap opera “Days of Lives” move to streaming, not everyone is happy. TV journalist Meredith Blake explains how the practice alienates older soap fans. Streaming is also providing opportunities for once-shunned stars like Roseanne Barr, who will have her first stand-up special in 16 years on Fox Nation, reports Stephen Battaglio.

– Anousha Sakoui writes that the family of cinematographer Peng Wang, 29, who died while filming a USC student film, has filed a wrongful death lawsuit against USC and two students. In June, Wang’s father told Sakoui, “There is no greater pain in life than this type of bereavement.

— Sakoui also covered the latest developments in the “Rust” tragedy. The New Mexico district attorney’s office has confirmed that criminal charges could be brought against four people, including actor Alec Baldwin, in the shooting death of cinematographer Halyna Hutchins.

– Please welcome Tech Journalist Brian Contreras to the Company Town team. This week, Brian wrote on YouTube offering ad revenue sharing to creators making short videos. It’s a necessary move for YouTube as it competes with TikTok.

– KTLA presenter Mark Mester made on-air remarks criticizing the way Lynette Romero’s exit was handled. Then he was fired. Jonah Valdez has the scoop. Meg James addresses the unrest within KTLA and criticizes that station executives have been unresponsive to concerns about a shortage of Latinos on the air.

– Los Angeles-based video and live events company Triller has settled a lawsuit with music producers Swizz Beatz and Timbaland.

– Meg James writes about the story behind Hulu’s “Legacy: The True Story of the LA Lakers.”

week number

fifteen point three million

Thirteen million viewers watched Thursday Night Football on September 15 on Amazon Prime Video, according to Nielsen. Stephen Battaglio reports that viewership has increased by 47% compared to a comparable game last year. Amazon has paid $1 billion a year for 15 Thursday night games, and so far many young viewers are watching, Battaglio writes. Amazon, whose data counted the game’s alternate streams on Prime Video, says an average of 15.3 million viewers tuned in to the September 15 game.

Catch-up reading…

Sarah Crouse and Jessica Toonkel report that Netflix is reduce costs by changing the way it pays for comedy specials (Wall Street Journal).

Emily Baker-White reports that three former TikTok department heads resigned because they were told to follow the advice of the Chinese office of parent company ByteDance (Forbes).

Cynthia Littleton details how the television director Charlie Collier’s move to Roku participates in the company’s strategy (Variety).

Alex Sherman writes about the co-president of the Creative Artists Agency The influence of Bryan Lourd on Hollywood (CNBC). I interviewed Lourd earlier this month about his efforts to help prepare the next generation of students interested in working in Hollywood.

Film shoots

Outdoor film shoots in the Los Angeles area fell 7% last week compared to the same period a year ago. Here are the latest numbers:

film shoots

To finish …

A teenage girl in a superhero costume emitting a purple force field

Iman Vellani as Kamala Khan in “Ms. Wonder.”

(Marvel Studios)

I recently finished the Disney+ series “Ms. Marvel” about Kamala Khan, a young Pakistani American teenager who discovers she has superpowers.

As someone who didn’t grow up seeing female superheroes of color on TV, it was awesome and inspiring to watch Khan fight evil and deal with the challenges of having protective parents who are immigrants. first generation. Khan also uncovers more of her past, delving into what happened to her great-grandmother during the partition.

Two of the directors who worked on “Ms. Marvel,” Adil El Arbi and Bilall Fallah, were also the directors of HBO Max’s “Batgirl” featuring the first Afro-Latina Batgirl, which makes me want to see that movie. . For now, Warner Bros. Discovery, which operates HBO Max, has halted the film’s release and could use it for a tax deduction.


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