Netflix Co-Ceo Takes A Dig At Amazon's Prime Video Ad Strategy: 'Rather Than Force Them Into A Change...Better To Attract Them'
Portfolio Pulse from Benzinga Neuro
Netflix Co-CEO Greg Peters commented on the company's advertising strategy during the Q4 earnings call, contrasting it with Amazon's upcoming introduction of ads on Prime Video. Peters highlighted that Netflix considered but decided against making ads the default option, respecting its history of ad-free service. He pointed out that 40% of new Netflix signups are for the ad tier. Amazon's ad-supported option will reach its 115 million monthly users, a larger audience than Netflix's ad tier. Netflix's strategy includes potential price hikes and partnerships, like the one with Carrefour, to boost its subscriber base and revenue. Despite competition, Netflix reported a strong Q4 with $8.83 billion in revenue and 13.12 million new subscribers.
January 24, 2024 | 12:08 pm
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POSITIVE IMPACT
Netflix's Q4 earnings call highlighted a strategic approach to advertising and user growth, with strong revenue and subscriber numbers. The company's decision to avoid default ads may appeal to users preferring an ad-free experience.
Netflix's positive Q4 results and strategic decision to offer an ad tier without making it the default could be seen favorably by investors and users who prefer an ad-free experience. This approach, along with potential price hikes, indicates a focus on revenue growth and customer satisfaction, which could lead to a positive short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Amazon is introducing ads on Prime Video, which could impact its competition with Netflix for advertising revenue. With a larger user base for its ad tier, Amazon's move represents a significant shift in the streaming ad landscape.
Amazon's introduction of ads on Prime Video could potentially attract advertisers due to its larger user base, but it's unclear how this will affect its short-term stock performance. The impact on Amazon's stock will depend on how the market perceives the move against Netflix's ad strategy and whether it will significantly boost Amazon's ad revenue.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70