Morning Tidings

Tag: AdSupported

  • Netflix Series Creators Demand More Money After Launch of Ad-Supported Subscription Service

    Netflix Series Creators Demand More Money After Launch of Ad-Supported Subscription Service

    San Francisco, January 3 : Series creators on Netflix are demanding more money from the streaming giant after it launched an ad-supported subscription service in November last year. According to Jeremy Zimmer, head of the United Talent Agency, this strategy “changes the game” in terms of how the streamer should compensate creative talent, reports Financial Times.

    “A show that does really well will get more advertisers and more revenue will flow to Netflix. Therefore, our clients who created that show should be compensated for that additional revenue,” Zimmer was quoted as saying. Samsung Electronics Unveils New Odyssey, ViewFinity and Smart Monitor Lineups To Be Showcased at CES 2023.

    Netflix launched the “Basic with Ads” plan on November 3, 2022, at $6.99 per month, compared to between $9.99 and $19.99 per month for an ad-free subscription. About 9 per cent of Netflix subscribers in the US have opted into the streaming service’s new “Basic with ads” streaming plan, according to reports.

    Netflix launched its ad-supported service to offset slowing subscriber growth. The company, however, has long resisted profit-sharing arrangements with creative agencies. However, according to Zimmer, previous rules were tied to an ad-free platform. “There’s a different revenue stream coming in that they had said wasn’t going to be there,” said Zimmer. Microsoft Coding Hackathon: TCS, Wipro and IndusNet Announced As Top Three Winning Teams.

    According to analytics firm Antenna, in addition to the “Basic with Ads” subscribers who signed up for Netflix, the firm observed only 0.1 per cent of Netflix’s existing US subscribers switching to the “Basic with Ads” plan in November.

    (The above story first appeared on Morning Tidings on Jan 03, 2023 11:52 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • Netflix Confirms an Ad-Supported Tier Amid Second Round Layoffs

    New Delhi, June 24:  Streaming giant Netflix, which has laid off 450 employees in two tranches so far, is set to launch an ad-supported tier by the end of the year to reduce its losses and bring more users on to the platform.

    Netflix’s Co-CEO Ted Sarandos confirmed during the Cannes Lions advertising festival that the future of the streaming giant will include ads, reports Hollywood Reporter. Netflix Job Cut: Video Streaming Platform Bids Goodbye to 300 Employees in 2nd Round of Layoffs

    “We are adding an ad tier. We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads,’” Sarandos told ‘Sway’ podcast host Kara Swisher.

    Sarandos confirmed that the streaming service is in talks with potential ad-sales partners.

    As the company’s share price has tanked, there has been growing speculation that Netflix can be acquired soon.

    Sarandos admitted that a buyout “is always a reality, so we have to be wide-eyed about that”.

    However, he insisted that “we have plenty of scale and profitability and free cash flow to continue to grow this business”.

    Its rival Disney Plus also plans to launch a similar ad-based offering by the end of the year, starting with the US, before going global.

    Netflix saw its stock tumbling by 20 per cent after it reported a loss of 2 lakh paid subscribers in the first quarter of 2022, its first subscriber loss in over a decade.

    Moreover, it now forecasts a global paid subscriber loss of 20 lakh for the April-June quarter (Q2).

    After laying off 150 employees recently, the popular video streaming platform has once again shown the exit door to an additional 300 employees in the second round of layoffs.

    The cuts are across multiple business functions in the company, with the bulk of the jobs lost in the US.

    The platform has indicated more rounds of layoffs would be coming this year.

    (The above story first appeared on Morning Tidings on Jun 24, 2022 06:13 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).