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Netflix (NFLX) Hires Two Top Snap Executives to Lead Ad Push
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Netflix (NFLX - Free Report) recently announced that it has appointed two of Snapchat parent Snap Inc.’s (SNAP - Free Report) top executives to help the streaming giant in building relationships with brand advertisers to support its AVOD tiers, which are expected to be launched early next year.
Snap confirmed the departure of chief business officer Jeremi Gorman and Peter Naylor, vice president of ad sales for the Americas. Gorman has been working with Snap since 2018, looking after the global sales team responsible for enterprise advertisers, while Naylor joined the company two years ago after helping Hulu expand its robust ad-based subscription tiers.
Netflix introduced its plans to launch an ad-supported tier of its service earlier this year, after reporting its first quarterly subscriber loss in over a decade. Netflix is struggling with slow revenue growth attributable to stiffer competition from rival companies and rampant account sharing among its prospects.
Netflix had 220.67 million global subscribers in the second quarter, a loss of nearly 1 million subscribers. The upcoming advertising tier will look to turn that trend around by giving customers a cheaper streaming option, with reports suggesting that the plan could come down to the $7-9 price range.
News of Naylor and Gorman’s appointments comes around six weeks after Netflix confirmed that Microsoft will be its technology and advertising sales partner. Netflix’s shares are down 63.4% year to date compared with the Zacks Consumer Discretionary sector’s decline of 33.1% over the same time frame.
Netflix to Jump the Ad-Supported Streaming Bandwagon
Netflix is joining a chase for ad dollars that other streamers have already started. HBO Max, part of the newly-merged Warner Bros. Discovery (WBD - Free Report) , has already expressed a desire to run commercials for some HBO films. WBD has been focusing on selective projects and content to sustain viewership on its streaming platforms.
Hulu has begun reaching out to local and regional advertisers and not just the big national marketers revered by major media outlets.
Disney’s (DIS - Free Report) new ad-supported offering for the Disney+ streaming service will be available starting Dec 8, 2022. The company has also reached out to affiliates and recently signed a new agreement with the ad-tech company, The Trade Desk, as part of an effort to boost the commercial inventory it sells via connected-TV.
Netflix’s most popular streaming plan in the United States is now $15.50 per month. This follows several rate hikes to help pay for its original programming, which has gained importance since Disney pulled down its programming and classic movies from Netflix after licensing agreements between the companies expired.
Netflix and Disney have also been cutting costs and downsizing to sustain amid macroeconomic challenges. While Disney cut $1 billion from the 2022 budget, it will still spend $7 billion more than a year ago.
In May, as Netflix’s subscriber count flagged, the platform canceled some of its announced animation projects, including Antiracist Baby, Wings of Fire, and Pearl, an animation project from Meghan Markle. In the world of adult animation, Netflix also scrapped a planned adaptation of the acclaimed adult comic Bone, as well as the original series Boons and Curses from animator Jaydeep Hasrajani.
Netflix’s diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content, is expected to remain the key catalyst. The ad-supported low-priced tier might just help this Zacks Rank #3 (Hold) company regain some of the lost market share in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Netflix (NFLX) Hires Two Top Snap Executives to Lead Ad Push
Netflix (NFLX - Free Report) recently announced that it has appointed two of Snapchat parent Snap Inc.’s (SNAP - Free Report) top executives to help the streaming giant in building relationships with brand advertisers to support its AVOD tiers, which are expected to be launched early next year.
Snap confirmed the departure of chief business officer Jeremi Gorman and Peter Naylor, vice president of ad sales for the Americas. Gorman has been working with Snap since 2018, looking after the global sales team responsible for enterprise advertisers, while Naylor joined the company two years ago after helping Hulu expand its robust ad-based subscription tiers.
Netflix introduced its plans to launch an ad-supported tier of its service earlier this year, after reporting its first quarterly subscriber loss in over a decade. Netflix is struggling with slow revenue growth attributable to stiffer competition from rival companies and rampant account sharing among its prospects.
Netflix had 220.67 million global subscribers in the second quarter, a loss of nearly 1 million subscribers. The upcoming advertising tier will look to turn that trend around by giving customers a cheaper streaming option, with reports suggesting that the plan could come down to the $7-9 price range.
News of Naylor and Gorman’s appointments comes around six weeks after Netflix confirmed that Microsoft will be its technology and advertising sales partner. Netflix’s shares are down 63.4% year to date compared with the Zacks Consumer Discretionary sector’s decline of 33.1% over the same time frame.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Netflix to Jump the Ad-Supported Streaming Bandwagon
Netflix is joining a chase for ad dollars that other streamers have already started. HBO Max, part of the newly-merged Warner Bros. Discovery (WBD - Free Report) , has already expressed a desire to run commercials for some HBO films. WBD has been focusing on selective projects and content to sustain viewership on its streaming platforms.
Hulu has begun reaching out to local and regional advertisers and not just the big national marketers revered by major media outlets.
Disney’s (DIS - Free Report) new ad-supported offering for the Disney+ streaming service will be available starting Dec 8, 2022. The company has also reached out to affiliates and recently signed a new agreement with the ad-tech company, The Trade Desk, as part of an effort to boost the commercial inventory it sells via connected-TV.
Netflix’s most popular streaming plan in the United States is now $15.50 per month. This follows several rate hikes to help pay for its original programming, which has gained importance since Disney pulled down its programming and classic movies from Netflix after licensing agreements between the companies expired.
Netflix and Disney have also been cutting costs and downsizing to sustain amid macroeconomic challenges. While Disney cut $1 billion from the 2022 budget, it will still spend $7 billion more than a year ago.
In May, as Netflix’s subscriber count flagged, the platform canceled some of its announced animation projects, including Antiracist Baby, Wings of Fire, and Pearl, an animation project from Meghan Markle. In the world of adult animation, Netflix also scrapped a planned adaptation of the acclaimed adult comic Bone, as well as the original series Boons and Curses from animator Jaydeep Hasrajani.
Netflix’s diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content, is expected to remain the key catalyst. The ad-supported low-priced tier might just help this Zacks Rank #3 (Hold) company regain some of the lost market share in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.