Roku has welcomed Netflix into the ad streaming market.
19.10.2022 - 18:47 / variety.com
Todd Spangler NY Digital Editor Just over three years ago, Netflix unequivocally shot down the idea that it would ever roll out an ad-supported streaming service. “When you read speculation that we are moving into selling advertising, be confident that this is false,” the streamer said in its second-quarter 2019 investor letter. “We believe we will have a more valuable business in the long term by staying out of competing for ad revenue and instead entirely focusing on competing for viewer satisfaction.” Clearly, Netflix’s thinking about advertising has changed. Both Netflix and Disney+ are launching ad-based tiers this fall, seeking to broaden their addressable markets and tap into a new revenue stream as subscriber growth has slowed — in Netflix’s case, it lost 1.2 million in the first half of 2022, compared with a net gain of 5.5 million in the prior-year period.
The move to let “consumers who would like to have a lower price and are advertising-tolerant get what they want makes a lot of sense,” Netflix chief Reed Hastings told investors in April in explaining his about-face. The ad industry has cheered the moves by the two streamers. “It’s going to be the most new inventory for TV content ever introduced at one time,” says Ashwin Navin, CEO of Samba TV, a television and streaming viewing measurement firm. “These companies collectively represent a massive amount of premium video that until now has been off the market [for advertisers]. It’s a watershed moment.” Netflix’s Basic With Ads, priced at $6.99 a month, begins Nov. 3 in the U.S. and 11 other markets. Disney+ bows its ad-supported plan at $7.99 a month on Dec. 8. For Q3, Netflix returned to positive subscriber growth, netting 2.4 million new subs, and
Roku has welcomed Netflix into the ad streaming market.
Sky and Peacock are forging a TV adaptation of Frederick Forsyth’s The Day of the Jackal with Top Boy showrunner Ronan Bennett attached.
Director Thomas Napper (“Jawbone”) is behind a new feature film that will chronicle the gritty journey in the early years of the Veuve Clicquot vineyard in 19th-century France. The film brings to life the fascinating young woman behind the iconic orange label that helped transform the French champagne house into something iconic.
EXCLUSIVE: The Crown’s Jonathan Pryce, who portrays Prince Philip, Duke of Edinburgh, in the show’s upcoming fifth season, has told Deadline he’s ”bitterly disappointed” by those he termed “my fellow artistes,” for publicly criticizing the drama and demanding it carry a disclaimer.
Rodolphe Belmer, the former Canal+ CEO on the verge of heading up French network TF1, has stepped down from the Netflix Board.
Todd Spangler NY Digital Editor Despite rumors to the contrary, Netflix says it has no plans to stop dropping all episodes of a TV show at once for binge-friendly viewing. “We think our bingeable release model helps drive substantial engagement, especially for newer titles,” Netflix said in its Q3 shareholder letter, as part of announcing quarterly results Tuesday. “This enables viewers to lose themselves in stories they love.” The company’s comments come after the Puck newsletter last month reported that Netflix execs were mulling a change to binge strategy and release major titles on a weekly schedule. Netflix, which pioneered the practice of binge-releasing TV seasons in their entirety, said it’s sticking with that game plan.
In a third-quarter earnings interview dominated by talk of advertising, top Netflix execs described it as a “sprint” to capture “a whole new audience” and a bid to woo advertisers affected by “the collapse of linear television.”
Todd Spangler NY Digital Editor After two straight quarters of subscriber losses, Netflix returned to growth in the third quarter of 2022 — and told investors it’s expecting a strong Q4 to finish the year, even though it doesn’t expect big gains right away from the launch of its cheaper, ad-supported plans. The streaming giant reported 2.41 million net new paid subscribers in Q3, including a gain of 100,000 in the U.S./Canada region, to stand at 223.1 million worldwide as of the end of September. That handily topped Netflix’s previous forecast of a 1 million pickup for the period. For Q4, Netflix expects to gain 4.5 million new streaming customers, compared with 8.3 million in the year-earlier quarter. Netflix Basic With Ads is slated to launch in the U.S. on Nov. 3 and priced at $6.99 per month — three dollars less than the regular Basic plan. Similar ad tiers are also coming next month to 11 other countries: Australia, Brazil, Canada, France, Germany, Italy, Japan, Mexico, South Korea, Spain and the U.K.
Todd Spangler NY Digital Editor Netflix will no longer share projected subscriber targets in upcoming earnings reports — a closely tracked metric among investors — as the company looks to shift the narrative to its financial performance. Starting with Netflix’s fourth-quarter 2022 earnings report in January 2023, it will not provide guidance for the next quarter (Q1 of 2023). The company will continue to provide guidance for revenue, operating income, operating margin, net income, EPS and fully diluted shares outstanding for the following quarter, but not paid membership. Click here to sign up for Variety’s free Strictly Business newsletter covering earnings, financial news, and more. “As discussed in previous letters, we are increasingly focused on revenue as our primary top-line metric,” Netflix said in its Q3 shareholder letter. “This will become particularly important heading into 2023 as we develop new revenue streams like advertising and paid sharing, where membership is just one component of our revenue growth.”
Netflix may not be in the live sports business but it certainly wants viewers to know that it’s got some content around the edges.
Todd Spangler NY Digital Editor Netflix wants to make it as simple as possible for people who have been using someone else’s account — possibly in violation of the company’s terms of use — to set up a separate paid membership. On Monday, Netflix is launching Profile Transfer, a feature that lets anyone on an existing account migrate their profile to a brand-new account while preserving all of their personalized recommendations, viewing history, My List, saved games and other settings. Profile Transfer, which Netflix says has been “much requested” by customers, will roll out to all members worldwide starting Monday. Users will be notified by email when Profile Transfer becomes available on their account.
Director Rian Johnson confirmed that Daniel Craig’s popular Knives Out sleuth Benoit Blanc is Queer during a press conference at the London Film Festival.
Netflix? We’ve got you covered. October brings with it a trio of high-profile new movies coming to Netflix, all of the bone-chilling variety to differing degrees. But if you’re not in the mood for something spooky, there are a number of other excellent films newly streaming on Netflix this month.
Netflix stock dipped 1% to close the week at $230 a share as debate continued on Wall Street about the financial impact of the company’s embrace of advertising.
Netflix’s ad-supported tier will be missing certain series and movie titles at launch, the company conceded today in announcing details about the rollout.
Todd Spangler NY Digital Editor After years of Netflix execs spurning the idea of serving up commercials to viewers, the streaming giant is flipping the switch on its first cheaper, ad-supported plan next month. Netflix Basic With Ads will launch in the U.S. on Nov. 3 at 9 a.m. PT, priced at $6.99 per month, the company announced. The cheaper plan will be available in 12 countries: Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the U.K. and the U.S. It will first roll out in Canada and Mexico on Nov. 1. Basic With Ads will be $2 cheaper than Netflix’s Basic plan ($9.99/month in the U.S. currently), which provides the ability to stream on one device at a time. Previously, the Basic plan has not supported HD, but with the launch of the ad tier, Netflix will provide video quality of up to 720p HD for both Basic With Ads and the plan with no ads.
Todd Spangler NY Digital Editor Netflix has taken peak TV to a new peak. In a data point sure to fuel more quantity-versus-quality debate, Netflix broke its own record for number of original episodes released in a single quarter — with 1,026 in the third quarter of 2022, according to a tally by Wall Street firm MoffettNathanson. That’s more than five times any other streaming rival: Amazon Prime Video and Hulu released 223 and 194 episodes, respectively, and Disney+ debuted 140 original episodes, per the report. HBO Max, now owned by Warner Bros. Discovery, released 114 episodes in the third quarter — significantly fewer episodes than usual and comprising the lightest slate for the service since Q2 2020, the second quarter after launch. WBD has been paring back HBO Max’s content slate in recent months as it looks to cut costs.
John Hopewell Chief International Correspondent YouTube Originals will launch on Nov. 18 “Behind the Beats,” a novel animated pop music anthology series produced by France’s TeamTO and 22D Music Group in partnership with France Télévisions, the French public broadcaster. Episodes 1-4 of the novel history of pop will also debut on the YouTube Kids app, YouTube Originals Kids & Family announced on Wednesday. YouTube and TeamTO have shared first-look images from the series in exclusivity with Variety. The deal sees YouTube launching the series worldwide but with a one-year holdback in the French language, where France Télévisions has first-window exclusivity.