MEDIA UPDATE OF THE WEEK
Online streaming platform Netflix has plans to introduce an advertising-supported subscription alternative in the near future.
With recent disappointing quarterly earnings, there has been a call within the organisation to expand from its traditional subscription-based model to offering an advertising-supported model in conjunction with its current practice.
This may come as a surprise to some as Netflix’s CEO Reed Hastings has been vocal over the years stating that he has been “been against the complexity of advertising and [is] a fan of the simplicity of subscription”, regularly rejecting calls for ad-supported streaming services. Unfortunately for Netflix, losing a concerningly large portion of its subscribers in its first quarter has forced the streaming giant to explore its options.
To start the first quarter, Netflix had 200,000 fewer subscribers than it had in the fourth, entirely missing its own prediction of an additional 2.5 million subscribers. As targets were down, so was revenue, with a reported $10.601 billion earned for the three-month period which was below expectations. Currently, the streaming platform has 221.64 million global subscribers.
The implementation of Netflix’s new ad-supported service dawns a new horizon, it will give consumers more payment options, which will hopefully bring in new or previously lost consumers. For the media industry, this will be an amazing opportunity that will need to be explored, especially considering how the entire streaming industry will likely follow suit.
Consumer Confidence this week had mixed results around Australia as many took the chance of back-to-back holiday weekends to take some time away.
Overall index is down only 0.3pts to 96.5 this week but it is still a significant 15.9pts below the same week a year ago, April 24/25, 2021 (112.4) and remains below the 2022 weekly average of 98.1. The index is down in Victoria and Western Australia but up slightly in New South Wales, Queensland and South Australia.
David Plank, ANZ Head of Australian Economics, has said "Consumer confidence was practically unchanged last week, despite the continued fall in inflation expectations. Confidence declined by a modest 0.3% as petrol prices increased a touch after four straight weeks of decline..."
Network Seven currently have the highest share for the week with 36.64%, followed by Network Nine with 34.81% and Network Ten with 19.38%.
The top two programs this week were Seven News and Seven News at 6.30, with 960,591 total people tuning in to the 6pm program and 917,903 to the 6.30pm program. These top spots were closely followed by Seven’s The Voice which reached 896,180 total people, and Nine’s Lego Masters which reached 844,811. On Monday 18th April, the new season of MasterChef launched on Ten to an audience of 608,532 total people, placing it in the top 20 highest reaching programs for
Source: Nielsen eTAM (April 2022)
In the week of the 18th – 24th April 2022, 1,045.7 million minutes of BVOD content was consumed, reaching 5.8 million people nationally. Seven took the top spot with The Voice reaching a BVOD audience of 140,000 people. Overall, Seven dominated the highest reaching programs, featuring 5 times in the top 10 programs. Nine was a strong contender achieving the 2nd, 5th, 6th and 7th highest reaching spots with Lego Masters Season 4 and The Thing About Pam.