Netflix Needs Some Help With Ads

Netflix’s next move

Netflix co-founder Reed Hastings once rejected the idea of ​​advertising on streaming services as a non-starter. Then this year, the company posted a subscriber loss for the first time in more than 10 years, and the stock price soared. The company is currently in talks with Comcast and Google to help with details of plans to offer advertising-supported services. The Wall Street Journal reported yesterday..

Ben MarinTimes media reporter says advertising plans can bring great benefits to Netflix, even if it raises questions in Hollywood. This is his idea:

• According to the company, advertising could inject more than $ 1 billion in profitable revenue annually into streaming services. Some analyst reports.. And it can do that in a relatively short time frame: Netflix executives told employees that they plan to start advertising the service sometime in the last three months of the year. This is important when Wall Street has tolerated years of high spending and is putting more pressure on the video streaming business to increase profitability.

• Nonetheless, Hollywood executives have questions about offering Netflix, which is supported by ads. Can content producers reduce the revenue Netflix generates by selling ads to movies and TV shows? When will the final editorial director have the opportunity to negotiate with Netflix about which commercials will be inserted? Also, can advertisers get detailed information about viewer behavior from Netflix, which has been accused of being stingy on user data? Under my existing license agreement with Netflix producers, can streamers also display commercials with content?

Ed LeeAnother Times media watcher says Netflix is ​​inevitably moving, not an opportunity.

• The real reason Netflix is ​​rushing to launch an ad-based service: growth is slowing. Also, streamers don’t have the technology, sales staff, or Rolodex to reduce transactions. Therefore, it cannot do that alone.

• Netflix could prey on most of its current customer base. Earlier this month, Wells Fargo analysts predicted a cheaper, ad-supported Netflix service. Attract more than 100 million subscribers However, only 16 million of these customers are new users. Wells Fargo analysts believe that nearly 85% of users of Netflix’s cheap services will be existing subscribers who want to keep streaming costs down.

• After all, Hollywood may balk. It’s hard to imagine Martin Scorsese being happy to hear that some ads would appear before his movie. And, as Ben says, Hollywood executives are already asking what’s included for them. Netflix may have to renegotiate part of its license agreement. For new deals, producers will want to reduce their advertising revenue or make more money in advance.

So far, Netflix hasn’t talked much about the plan. A Netflix spokeswoman said yesterday: So this is all just speculation at this point. “

What’s happening

Federal Reserve Chair Jay Powell said the recession is “certainly possible.” Powell said the Fed could delay inflation without putting the United States in a painful recession. However, the successful execution of so-called soft landings has been “significantly difficult due to the events of the past few months,” he said, citing the supply turmoil that pushed up prices. He appears today in front of the House Financial Services Commission.

Support for bipartisan gun reform measures in the Senate reflects political change. Fourteen Republicans, including minority leader Mitch McConnell of Kentucky, have defeated the party to advance legislation. Only two will be reelected this year, and most Republicans are expected to oppose the bill.

Russia is stepping up hacking attacks on Ukrainian allies, Microsoft researchers say. about 128 targets in 42 countries They say the United States is at the top of the list, having been hit by Kremlin-led cyberattacks since the beginning of the war. Attacks were expected to increase, but they were not as successful as initially predicted by security experts.

Elon Musk says the Tesla factory is “currently a huge gold kamado.” Mask said in interview The Texas and Berlin factories were “lost billions of dollars” due to production delays due to battery shortages and shipping problems. He said the company’s main concern is to keep the factory running, which allows it to keep paying people and “not go bankrupt”.

Altria’s Burning Question

Marlboro maker Altria shares were hit yesterday after the Wall Street Journal reported by the Food and Drug Administration. Order Juul Labs to remove e-cigarettes from the US market.. Altria paid nearly $ 13 billion for Juul’s 35% stake in 2018, and Marlboro makers have already reduced their investment in Juul by at least $ 11 billion. Yesterday’s news could make that stake worthless or close to it — and leave a big question mark for the future of the tobacco giant.

Electronic cigarettes were once the next big thing. Faced with a slowdown in traditional tobacco sales, big cigarettes quickly jumped in. RJ Reynolds introduced Vuse. E-cigarette startup Njoy has been endorsed by prominent investors such as Napster, Facebook-famous Sean Parker, and venture capitalist Peter Thiel.

but, Juul’s sales surged, especially among teens, The FDA was concerned.. That led to the crackdown on regulations in 2018. At that time, Juul turned to Altria for funding and regulatory power instead of trying to raise $ 20 billion from venture capital. In 2020, the agency got approval from the e-cigarette maker to stay in the US market, but now Juul doesn’t seem to get it. There is a possibility of appeal. Juul does most of its business in the United States and is reportedly Last year’s net loss was $ 259 million.

This could leave Altria in the world of problems. Its core product is in dire straits, and the FDA aims to significantly reduce nicotine levels in cigarettes. Altria earns about 90% of its revenue from smokeable products. Its revenue fell slightly last year, According to the submission to the regulatory agency, And its inventories have fallen by more than 45% over the last five years. Other diversification attempts, such as the investment in the cannabis company Cronos, have failed as well. Altria reduced its investment by $ 200 million at the end of last year. Altria may seem like a big hit outside of tobacco, given its large distribution at convenience stores. Pass the popcorn.

“We are hired for our special knowledge and experience, but our special knowledge and experience are not valued in the same way.”

— Malaika Adero, a writer and book agent, talks about being black in publishing.New executives of executives Trying to change the industry..

NFL and Toxic Workplace

Professional soccer teams are not your typical everyday employer. But their visibility means they need to set an example for dealing with issues such as bullying, harassment, and intimidation, says Carolyn Maloney, chairman of the House Oversight and Reform Commission. .. Instead, some are far below that.

At a hearing yesterday, Maloney said the NFL secretly agreed to withhold evidence that Washington Commanders owner Dan Snyder had raised a “notorious and toxic workplace.” New York Democrat Maloney said the league’s failure forced him to submit two new bills aimed at protecting all workers. (Snyder’s representative said the Commission’s investigation was “predetermined from the beginning,” adding that the team addressed workplace issues “a few years ago.”)

The proposal limits nondisclosure agreements and protects workers’ privacy. The Commission began investigating the NFL’s alleged misconduct and subsequent investigations in the fall. It turns out that Snyder relied on bullying and intimidation and treated men and women unequally. For example, the commander has fired a female cheerleader who has a consensual sexual relationship with a player who continues to work.It is said that the video of the cheerleader was also turned. For personal videos Accusations denied by him and others for Snyder.One of the bills introduced by Maloney outlines Process for handling allegations of fraud Prohibits reconciliation that impedes transparency.The other is Agree to capture images of employees Illegal use is prohibited.

Will the bill pass? Republicans admit that bullying is a serious problem, but private companies are not under the jurisdiction of the Commission and Congress should focus on inflation and the economy. Kentucky Rep. James Comer, a top Republican member of the Commission, protested that the commander’s “overhaul” had already begun. Given the loud resistance, the chances of passing may be small.

Workplace toxicity can also be an economic issue. According to McKinsey’s report on the mental health of employees in 15 countries, companies “pay high costs if they fail to address workplace factors that are strongly associated with burnout, such as burnout.”Toxicity Largest predictor Exhausted, researchers have found. Dissatisfaction with bad management has helped drive a “great resignation,” and corporate culture is ranked more than ten times more important to workers than compensation. analysis Of the glass door review by other researchers. McKinsey researchers say companies are increasingly offering programs for worker health without addressing the basic issues.

Speed ​​reading

Deals

• Sanus uses artificial intelligence to change the accent of call center workers and others. Raised $ 32 million Series A funding. (TechCrunch)

• European deal makers are having a hard time Securing funding.. (Bloomberg)

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