The Netflix/Hollywood Debate: The Three Years Netflix and What Have We Learned Since the First Stars Came Out in May 2023?
According to a shareholder letter, 30% of the incoming subscribers are opting for a 7 day trial with commercials, which is likely to draw in more advertisers. The higher prices for Netflix’s premium plans also seems likely to divert more subscribers into the ad-supported option.
There are benefits to the Hollywood strikes. Even though the Writers Guild of America struck a deal, actors are still on strike, and many productions are not going forward. In the long run, it is possible that Love Is Blind and Suits will be able to stick around on the platform. The actors’ strike might leave the streamer with less offerings to lure subscribers or retain them. The Wall Street Journal reported that the actors strike may lead to a price hike. It is possible that the increases announced Wednesday are the ones the Journal predicted, and if they are, the company will have to offer more to convince customers that they are getting the same value.
If it is not the company motto, then it should be, “Never count Netflix out.” The company reported a 9 million new subscribers worldwide and $8.5 billion in revenue for the third quarter of the year, which was up 8 percent from the same period last year. The company and Hollywood have had a very tumultuous three years and it is remarkable that that is what happened.
Consider the company’s crackdown on password sharing. The killjoy campaign launched in the US and UK in May 2023. It came on the heels of a topsy-turvy time for streaming, when Netflix was facing increased competition from new streamers like Disney+ and HBO Max (now known as Max) and losing subscribers for the first time in a decade. Shortly after the streamer pushed its $7 per month ad-supported tier, it moved to quash password sharing which shut out users who didn’t live in the same household as the account holder.
The company’s stock price soared more than 12% in extended trading after the latest quarterly numbers came out. The company’s shares have increased in value since the beginning of the year as a growing chorus of people say that its services are faring better than most of its competitors.
In an apparent effort to rebuild its library of original programming after everyone returns to work, Netflix said it expects to spend about $17 billion on TV series and films next year.
The ad revenue potential of Netflix: How much should we expect when the US economy comes into being financed financially? A comment on Purdy
Management could now focus on other ways to bring in more revenue, such as a low-priced option that has already been introduced, after the apparent success of the password-sharing crackdown.
“I think the advertising potential of Netflix is underappreciated,” Cheruvu said. The audience engagement with the video advertising could be more powerful than a social media platform.
According to Scott Purdy, the media leader for US, consumers should expect to be hit with price hikes, password sharing limits and other ad-supported options whenstreamflation arrives.