With a strong earnings report, Netflix prepares for the Upfront 2022-23

With a strong earnings report, Netflix prepares for the Upfront 2022-23

With the trailers of 2022-23 approaching Netflix
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which started selling ads last November has set a date and place for its sales presentation to advertisers. The streaming giant also struck another deal with audience measurement provider Nielsen.
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. Also, Netflix released its fourth quarter earnings report which beat financial projections.

The three announcements come at a time when the entire streaming industry is facing challenges including increased competition, slower subscriber growth, rising production costs, layoffs, financial concerns on Wall Street and a sluggish advertising economy. anticipated to come.

Despite these concerns in the fourth quarter, Netflix increased its number of subscribers by 7.66 million, easily exceeding Wall Street expectations of 4.57 million net new subscribers (Netflix, which was anticipating 4.5 million). It was also a three-fold increase from the third-quarter increase of 2.4 million. Netflix had lost subscribers in the first and second quarters of 2022. Globally, Netflix closed 2022 with 230.75 million subscribers, a year-over-year increase of 4%. Subscriber growth prevailed around the world, including the United States and Canada, which increased by 910,000 subscribers.

While the strong report has helped ease investor concerns about Netflix, earnings reports from other prominent streaming providers are scheduled for later in the quarter.

In addition to its earnings report, January has been a busy month for the streaming giant. Earlier this month, Netflix announced that it would be holding its first advertising pitch. Netflix had scheduled the Wednesday afternoon (5 p.m. ET) spot that CBS (now Paramount
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Global). While “Tiffany Network” held its courtship of vendors at hallowed Carnegie Hall (and subsequent reception at Central Park’s Tavern on the Green). Netflix will hold its inaugural showing in advance at the Paris Theater in midtown Manhattan, kicking off with an after party. In 2019, Netflix took over the Paris Theater lease.

CBS decided that instead of a big presentation, they would hold a series of more intimate meetings with advertisers in April. In the past, the CBS upfront was one of the highlights of the week, with musical guests including Aretha Franklin, Mariah Carey, and The Who. Since the upfront was always scheduled for Wednesday afternoons (matinee day), nearby Broadway performers, such as the cast of Jersey boys, hairspray Y Avenue Q he would come to entertain the announcers during his intermission.

NBC will continue to open the week with a big ad presentation at Radio City Music Hall on Monday morning. Other media companies have yet to announce their initial plans.

Netflix is ​​not the first digital company to invade the initial week of television. Last year, Alphabet’s YouTube held a “brandcast” presentation during TV upfronts. This year YouTube will return with a presentation on Wednesday at 7 pm (ET) immediately after Netflix. For its presentation, YouTube switched venues to the larger David Geffen Hall at Lincoln Center (since the Imperial Theater last year), a venue where Disney had previously held its presentations.

According to the Nielsen Caliber Report, as of December 2022, YouTube had a 8.7% share of all TV/Video viewers and Netflix’s share was 7.5%, the highest among all streaming providers. . Most digital media companies have their own NewFronts run by the Internet Advertising Bureau (IAB) that are scheduled a few weeks before the TV ones.

Also this month, Nielsen announced an expansion of its audience measurement agreement with Netflix. The new multi-year agreement covers the US, Mexico and Poland. Nielsen says that Netflix will have access to its cross-platform audience data. The announcement came a week after Nielsen launched Nielsen ONE, its new cross-platform measurement tool available in the US. Nielsen had already struck a deal with Netflix last year. Additionally, Nielsen provided viewing data for Amazon.
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cousins Thursday night football.

Prior to the earnings announcement, the new ad-supported level was reported to have gotten off to a slow start. digiday reported that Netflix only guarantees 80% of its audience with advertisers and offers refunds to its customers. The inability to meet viewership projections could be due to a lack of subscribers who signed up for the ad-supported tier or a lack of viewers for your shows. Netflix had been charging advertisers $65 CPM among the highest in the industry.

Netflix had priced the ad-supported tier for subscribers at $6.99 each month, and observers noted that they didn’t do a good job of promoting the tier to consumers. Antenna reports that in November only 9% of new Netflix subscribers chose the ad-supported tier. In addition, of that 9% the Wall Street Journal noted that 43% of them were already Netflix subscribers and had opted for the lowest-priced ad-tier service. Netflix projects it will have 40 million ad-supported subscribers by the end of this year. In its earnings report, Netflix declined to discuss the financial impact of its new ad-supported tier.

During the fourth quarter, Netflix benefited from such popular shows as Wednesday by Tim Burton (based on the addams family character), a new installment of Rian Johnson knives out film (“Crystal Onion”) Troll, all quiet on the western front, my name is Vendetta Y harry and meghan, a documentary series. Netflix announced that it would stream 49 new and original movies in 2023, down from 2022. Netflix has reportedly spend $17 billion on content this year. Netflix has yet to address password sharing involving 100 million households, another source of revenue.

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