The new option, priced at $7 per month, was designed to attract more customers and create an additional revenue stream in the face of increasing competition in the streaming market. Netflix expressed its goal to work with advertisers to develop unique advertising experiences.
“For instance, a 30-minute commercial could play out over several days, with a story unfolding each time a viewer watches a show on Netflix,” said co-Chief Executive Ted Sarandos, according to Reuters.
“You can’t do that in linear TV because people don’t live on one channel,” Sarandos said.
Following the announcement that it had reached 5 million MAUs, Netflix experienced a surge in its stock performance, achieving its best closing since April 2022.
In its first-quarter results, Netflix surpassed Wall Street expectations in terms of profitability, margins, and free cash flow, having reduced its content spend by $1 billion compared to the same period the previous year. While the company aims to maintain its annual content spend of $17 billion through 2024, it anticipates further opportunities for growth.
Wedbush analysts believe that Netflix’s ability to balance viewership levels with ad views per hour will contribute to increased average revenue per user, potentially reaching $16 or higher over time.
The guild’s negotiating committee sent a message to its members on May 16 that “the studios are risking significant continued disruption in the coming weeks and months that would far outweigh the costs of settling.”
TikTok Launches Small Business Workshop
TikTok recently began a four-week virtual workshop series called “TikTok TakeOff.”
In its press release, TikTok said the series covers the narratives, strategies, and practical insights of small and medium-sized businesses that have achieved success using the app.
The series is part of TikTok’s larger Small Business Month celebration. The company also announced partnerships with the Hispanic Heritage Foundation and Black Girl Ventures, committing $1 million to each organization to support entrepreneurship.
You can register here.
- According to The Wall Street Journal, having a retail location can help boost e-commerce sales.
“Warby Parker’s executives, for example, said that when the company opens a physical location in a new market, online sales in the area roughly triple.”
- Verizon’s CMO is departing after eight years. The company spent $3.5 billion in advertising in 2022.
- VICE Media is in talks to sell out of bankruptcy for $400 million.
- ESPN is planning to sell its programming directly to cord-cutters through a standalone streaming service.