Smartphone with Netflix logo is placed on a keyboard in this illustration taken April 19, 2022. REUTERS/Dado RuvicGlobal TV advertising market estimated to be worth $153 blnAd-supported service to launch in U.S., 11 other markets in Novupended the global entertainment industry about a dozen years ago with a streaming video service that rendered network television programming schedules and movie screening times all but irrelevant.
"They're just being able to reach fewer people, and the 18-to-49 demographic is even faster than the decline in pay TV. So this is what is really fueling the cycle, is that ... collapse of linear TV as an advertising vehicle." Eventually, Netflix, now operating in more than 190 countries globally, aims to provide "personalized" advertising, much as it recommends individualized viewing recommendations.
Some Wall Street analysts said the ad-supported version of the Netflix service might entice some price-sensitive existing subscribers to switch to the less-expensive option."While the strategic shift may cannibalize its existing market - particularly at the $9.99 tier - it's a great move in this inflationary environment, where households continue to rationalize their streaming choices," said Fred Boxa, associate director of consulting firm Arthur D. Little.