Win-win for both sides: Netflix doesn't have to invest very much (if anything) at all or build out an engineering team. Plus it splits its ad business and revenue share with a company that doesn't compete in the streaming space (unlike Google, Amazon or Comcast etc). Microsoft gets a big win for its ad platform, which is already at a $10B run-rate, probably growing much faster now with this deal. Yes, Microsoft Ads is probably like #5 or something in the ad market space, behind the big players, but that may have be a plus and leverage for Netflix to get a better deal. Likely Microsoft will have to increase headcount a wee little bit to support Netflix's specific custom asks but the underlying ads platform likely stays the same with very little changes. And gets some revenue share from the deal. And yes this is a response to a salty Amazon post 😜 https://www.teamblind.com/post/Netflix-Microsoft-=-Crap-KMUFWQtc TC 240K #microsoft #netflix #ads
Snapchat + FB = awesome That's what zuck thought before Evan Spiegel ditched him
I’m still waiting for TikTok + .gov. Then our CCP overlords will finally make a single streaming service that just plays CCP propaganda.
Strategically, introducing an ad product to their platform is a poor decision. Quality content drives subscribers - this is a known. Quality content is reducing on Netflix. So the value play is to have a lower priced offering that has a dwindling selection of content with ads? My read is this is a strategy to solely satisfy Wall Street and the “# of subscriber” metric but will further degrade Netflix in the long run
You don't know nothing. Hulu gets higher ARPU from ads supported users. Some people are willing to tolerate ads for a discount. So this will lead to more users and higher ARPU, win win. Content will mostly be the same. Some licensed content may not be allowed to be on ads tier
Then why isn’t Hulu’s market cap higher? I knew it was about optimizing some stupid metric that doesn’t make any sense lol, thank you for confirming that. Think about this for a second, Netflix is following a product strategy from Hulu and that will get them where they need to be. Still no concerns?
Tech Industry
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Why doesn't OpenAI offshore and reduce expense by 80%
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Boss or company
Tech Industry
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PM is irrelevant role and will die in next 2-3 years.
India
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Ideal indian parents
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Peaceful Protest Hasn’t Worked and Has Been Met With Aggression.
Who’s after Google in the ad space
Meta, Amazon
I can't seem to find updated numbers from this year, but looking at these links below, the current ranking is: Google, Facebook / Meta, Amazon, Verizon, Microsoft in the top 5 by online ad revenue. https://digiday.com/marketing/the-rundown-google-meta-and-amazon-are-on-track-to-absorb-more-than-50-of-all-ad-money-in-2022/ https://www.investopedia.com/news/facebook-google-digital-ad-market-share-drops-amazon-climbs/