The ongoing effort by Netflix to revive its subscriber,revenue growth and NFLX Stock price will enter a new phase starting in the following month.
The declining subscriber base at Netflix Inc ( NASDAQ:NFLX ) will continue to slow revenue growth through the first half of 2022. However, all of that may soon change as Netflix is ready to introduce its tier financed by advertisements.
It is possible that advertising will be responsible for reaccelerating the company’s revenue growth while also enabling it to maintain stable prices, which would, in turn, reinvigorate the growth of subscribers. In addition, investors were able to witness the benefits of advertising immediately.
The enormous market potential offered by Netflix for advertising
On November 1st, Netflix Inc ( NASDAQ:NFLX ) is going to begin offering a tier that is supported by advertisements. It’s possible that the intention is to get ahead of their competitor Disney, who is planning to release an ad-supported version of Disney+ in December. The leader in the streaming industry, Netflix, has always been known for its demanding business practices. According to several sources, it is seeking to charge greater rates for advertisements than the Super Bowl does.
The fact that Netflix Inc believes it has the capacity to even ask for that much money demonstrates the strength of its position. The high ad pricing has put off many purchasers. There aren’t many other platforms that can provide an audience as diverse as Netflix’s on the screen that provides the most immersive experience in the house, which is the television in the living room.
Netflix Inc intends to limit the amount of time spent on commercials to about four minutes for every hour o...
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