Sep 22, 2022 (PressReach.com via COMTEX) -- The Wall Street Journal reported that Netflix expects its ad-supported tier to reach 40 million viewers by next year, boosting Netflix stock /zigman2/quotes/202353025/composite NFLX +8.75% .
According to the article, Netflix /zigman2/quotes/202353025/composite NFLX +8.75% has shared these early forecasts with ad buyers, disclosing that it intends to attract 4.4 million unique viewers globally by the end of the year, with 1.1 million coming from the United States.
By the third quarter of 2023, the business anticipates that this figure will increase to over 40 million, including 13,3 million from the United States.
“We are currently in the early stages of determining how to provide a free, ad-supported tier with no decisions yet. Consequently, this is just conjecture at this stage, “A Netflix representative said to Yahoo Finance.
Following this story, Netflix stock /zigman2/quotes/202353025/composite NFLX +8.75% rose by 4% during afternoon trading. Near 1:50 p.m. ET, Netflix stock /zigman2/quotes/202353025/composite NFLX +8.75% was up 1.3%, nearly in line with the day’s gains before these stories.
The report comes after Netflix and Microsoft /zigman2/quotes/207732364/composite MSFT +6.16% , its advertising partner, met with ad buyers in recent weeks, according to The Journal. Tim Nollen, an analyst at Macquarie, raised Netflix stock /zigman2/quotes/202353025/composite NFLX +8.75% from Underperform to Neutral last week, expressing confidence in the s treaming service’s advertising tier . Nollen predicted in a letter to clients that Netflix may produce up to .6 billion in ad income in the U.S. and Canada by 2025 and $8.5 billion internationally, representing an increase of $2.1 billion in yearly revenue above current projections.
As competition in the streaming space intensifies and Wall Street shifts its focus away from subscriber counts, platforms have become more receptive to experimenting with various distribution and pricing models to diversify audiences and offset slowing growth, mainly through advertisements. Netflix and Disney /zigman2/quotes/203410047/composite DIS +3.36% are the most recent platforms to join the ad-tier bandwagon, with Disney /zigman2/quotes/203410047/composite DIS +3.36% planning to introduce its ads option on December 8.
Netflix also recently announced two senior hiring as part of its attempts to offer an ad-supported tier in 2019; but, according to fresh rumors, the firm is speeding forward the launch date to November 1 to beat Disney’s December deadline.
Bloomberg reports that the monthly pricing for ad-supported Netflix will range between $7 and $9. The news source claimed that the corporation intends to air four minutes of advertisements each hour of programming.
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Author: Jowi Kwasu
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