With talk in the industry growing about the possibility of Netflix introducing an ad-supported model sometime in the near future, B&T went one-on-one with Havas Media ANZ chief Mike Wilson to get his take on what the streaming giant will do to remain profitable and keep growing…
Do you think Netflix will introduce ads?
I don’t think it is a matter of if or not Netflix will introduce ads, but rather in what form they will monetise the platform through advertising without disrupting viewers’ experience and compromising on their brand values.
How long will it be before Netflix brings featured brand ads to the platform, if it all?
The streaming market is becoming increasingly more clustered as traditional TV and other streaming services will increasingly challenge Netflix’ leadership.
More media companies will shift their content offering to adapt viewers’ behaviour and how they experience their personalised channels.
The potential growth for subscribers is finite and when Netflix’s will be stagnant, perhaps this is when the platform will change its business model to be ad-supported.
To answer the pressure of the competition, Netflix will need to keep investing in content and find new ways of driving profit instead of relying on customer acquisition growth.
Given the backlash from users over Netflix’s recent ad testing, should the company have handled it differently?
Any change to the platform will be unwelcome, as users don’t generally welcome changes and less for revenue generation and profit. Users aren’t willing to compromise on their experience and have any disruption when they binge watch their favourite shows.
There is an assumption that by paying for the service, the platform should be ad-free.
Netflix only used a small segment to trial their ‘recommendations’ ads. The videos were broadcasted between shows and with the option to opt-out and skip the video.
The outcry at Reddit’s Netflix community was heavily relayed in media, as Netflix’s success is closely scrutinised and any potential ad space highly coveted.
What does Netflix need to be mindful of when introducing ads for real so they don’t turn off users?
Netflix audience is younger than traditional TV – they are generally more resistant to advertising than their older peers. They want brands to communicate with them on their own terms.
So, the question is: how will Netflix come up with the least disruptive way to generate revenue from brands, and how it will bring value to user experience?
In the same way it disrupted the industry, Netflix may need to disrupt the creative space to propose innovative paid content and how it can make the ads relevant to most of its users? Perhaps it will offer different subscription models like YouTube does?
Among the challenges ahead for Netflix, user retention will surely be one of them.
Independent brand and digital agency, Archibald Williams (AW) has been appointed to lead the NBA account across the APAC region. The NBA is one of the most prestigious sporting leagues in the world and basketball is one of the fastest-growing sports in Australia. Effective immediately, AW said it was “excited” to work across all digital, […]
B&T's shining a light on industry folk prior to adland. Preference given to anyone purporting actual UFO abduction.
Leading digital outdoor company QMS has announced it is the first-ever inaugural partner for Most Contagious APAC, the landmark London event by creative and strategic intelligence company Contagious, which will be showcased in Australia on Tuesday, 12 December in Sydney and Wednesday, 13 December in Melbourne. Most Contagious is an event that delivers key advertising […]
Omnicom’s data and analytics division Annalect has partnered with Meta, giving it access to Advanced Analytics (AA) – one of Meta’s privacy-focused measurement solutions – to provide Omnicom’s clients with future-proof, next-level measurement. Omnicom is the first holding company to have access to AA. AA allows advertisers to combine their first-party data with Meta’s ads […]
WPP’s AKQA has launched Fixmas.gift, an environmentally conscious AI-powered DIY assistant, affectionately known as Fixie, for a one-stop solution for all things repair. Fixmas.gift hosts an array of guides and inspiration to empower people to prolong the lives of their belongings or purchase pre-owned items that need a little love and care. Fixie can: Help […]
Marc Collister (pictured) of P2 Content Creators spills the beans on his 2024 predictions drawing from two decades of experience in the advertising, film and television industry. I’m certain it will come as no surprise that in 2024, we can expect our industry to move at breakneck speed again. With even more rapid shifts in […]
Zeno Australia has announced expanded creative design capabilities and the appointment of Jim Michell (lead image) to its senior leadership team. The new moves support strong growth in the region. Zeno Australia’s clients, including Abano Healthcare, Motorola and Yorkshire Tea, can now tap into a suite of creative design services to augment the agency’s work […]
Assembled Media, is drawing upon the creative power of TikTok Creator Marketplace to help generate unique, impactful content for iconic stationery brand, BIC. The social activation campaign titled ‘A Pen for Every Side of You’ promotes the flexibility of BIC’s 4 Colours pen and is active nationwide on the BIC Stationery TikTok account. The campaign […]
Pinterest reckons jellyfish & moody cowboys will be big in 2024. Refused to be drawn on the return of shoulder pads.
IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series, which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide […]
Scope3, the collaborative sustainability platform leading the decarbonisation of media and advertising, announced the addition of digital out-of-home (DOOH) to its emissions measurement. With DOOH ad spending predicted to grow from $17B in 2023 to nearly $24B by 2028, measuring this channel brings us one step closer to understanding the total impact of digital advertising […]
NRF 2024: Retail’s Big Show Asia Pacific, is now open for online registrations for the main conference. Jointly organized by the National Retail Federation and Comexposium, Retail’s Big Show Asia Pacific will take place from 11 – 13 June, 2024 at the Sands Expo and Convention Centre in Singapore and is expected to draw thousands […]