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While the loss of a million subscribers may seem daunting, it has come as a breath of relief for the company as the number was half of what the industry estimated. This has given Netflix the breathing room to make things better.
Netflix's unreasonable price points and the content's steadily declining quality are the two main factors contributing to consumer dissatisfaction. Netflix has chosen to address both.
Ads are not bad<\/strong>
In a game of who-stares-wins, Netflix finally blinked to introduce ads and partnered with Microsoft<\/a> to create cheaper subscription plans which will contain ads and will initially launch in developed markets. The responsibility for designing and managing the advertising platform will rest with Microsoft.
In a blog announcing the partnership, Greg Peters, chief operating officer and chief product officer of Netflix, said, “Microsoft has the proven ability to support all our advertising needs as we together build a new ad-supported offering. Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.”
“It’s very early days and we have much to work through. But our long-term goal is clear: more choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We’re excited to work with Microsoft as we bring this new service to life,” Peters added.
Microsoft’s president of web experiences Mikhail Parakhin said, “At launch, consumers will have more options to access Netflix’s award-winning content. Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. All ads served on Netflix will be exclusively available through the Microsoft platform.”
This step might change the game for Netflix. A Forrester report titled ‘May 2022 Consumer Energy Index And Retail Pulse Survey’ found that 8 per cent of US internet adults said they don't currently have a Netflix subscription. But this set would reconsider their decision if the service offered a cheaper option with ads. In addition to this, 6 per cent of the group with Netflix subscriptions said they would switch to the tier that is supported by ads if the price were to drop. The latter could imply a slight decline in the average revenue per user though.
Forrester’s vice president and principal analyst Joanna O’Connell wrote in a blog, “Microsoft brings gaming to the table, where there’s opportunity and innovation but nascency. If these new partners can translate this kind of next-gen thinking into the more traditional streaming TV ad ecosystem — where the ad experience is, well, just plain bad (too many ad pods, too many repeating ads) — that’s where magic could happen.”
Netflix is also changing the process of account sharing. With regards to this, Peters said, “We've been sort of working behind the scenes for almost two years in building the technical capabilities to get this stuff rolled out, and now we actually get to put something in front of consumers and see how they react. And this is sort of where the rubber meets the road.”
“We've got two models. Essentially, both of them are similar in that they ask consumers not to stop sharing so much but just to pay a little bit more for different forms of sharing. The first model asks to pay a little bit more to add a member and share with those additional members. The second model we're trying is to pay a little bit more to add an additional home and share the account with the additional homes,” he elaborated.
Making content the king<\/strong>
On February 1, 2013, Netflix made a ground-breaking decision by releasing the complete first season of ‘House of Cards’, a new series back then, all at once. Binge watching gained massive popularity, a phenomenon going strong to this day. Netflix continues to work on the same principle but its competitors have adopted the more conventional approach of dropping one episode per week and this might be harming Netflix because it stretches a season and prevents unsubscribing.
A Forrestor report suggests that 51 percent (46 per cent male versus 54 per cent female) of US online adults who use a streaming service cited that the top reason they haven’t cancelled a streaming service is because they don’t want to miss out on its original content.
While not yet ready to change how it drops content, Netflix has decided to improve its content strategy. The platform has introduced spatial audio, a 3D audio technique that uses dynamic head-tracking to produce a more immersive soundscape for a \"theatrical\" experience, in partnership with German audio brand Sennheiser. The feature has been rolled out for 221 mn of its subscribers that they can use by typing \"spatial audio\" into the search bar and selecting from the list of content that supports it.
It is also going the Walt Disney way by aiming to create original franchises that people can come back to over and over again, worlds that don’t just generate revenue through their sequels and spinoffs but through merchandise, games, theme parks and so on.
“Our content expenses will continue to grow, but it will be more moderate as we adjust for the growth in our revenue. We think we've gotten a lot smarter over the last decade or so being in the ‘originals’ business as to where we can direct our spend for most impact, highest impact, and highest satisfaction for our members. So that's roughly how we're thinking about it,” said Spence Neumann, chief financial officer of Netflix, in a conversation with Douglas Anmuth, internet analyst at JP Morgan.
Ted Sarandos, co-chief executive officer and chief content officer of Netflix, is full of hope about Netflix’s content strategy. He said, “We've seen entertainment business models come and go, and we have managed to grow through all of them through all kinds of economic conditions and through all levels of competition. So, we're super confident that as long as we make the films and the TV series and the games that people love, we're going to continue to lead this exciting and young industry.”
Time will tell if this strategy becomes a new ray of sunshine for Netflix. Unfortunately, one cannot binge-watch or fast forward to that moment of truth.
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Netflix带回它的用户吗?
虽然一百万用户的损失可能会让人感到畏惧,它已经作为公司一口气被遗弃的数字平台只是该行业估计的一半。这可能给Netflix喘息的空间做得更好。
虽然一百万用户的损失可能会让人感到畏惧,它已经作为一个呼吸救援公司的数字是该行业估计的一半。这给了Netflix喘息的空间做得更好。
Netflix的不合理的价格点和内容的质量稳步下降的两个主要因素导致消费者的不满。Netflix选择地址。
广告是不坏
who-stares-wins的游戏,Netflix终于眨了眨眼睛介绍广告和与微软创建更便宜的订阅计划将包含广告和最初将推出在发达市场。负责设计和管理广告平台与微软将休息。
格雷格•彼得斯在一篇博客宣布合作,Netflix的首席运营官和首席产品官说:“微软有能力支持我们所有的广告需要我们一起建立一个新的广告支持。微软提供了灵活性,创新随着时间的推移,技术和销售方面,以及强大的隐私保护我们的成员。”
“这是非常早期,我们有很多工作。但是我们的长期目标是明确的:消费者有更多的选择和一个溢价,better-than-linear电视广告客户的品牌体验。我们兴奋地与微软工作给生活带来新的服务,”彼得斯说。
微软的网络体验总统米哈伊尔·Parakhin说,“在发射,消费者将有更多的选项来访问Netflix的获奖内容。营销人员希望微软的广告需要将访问Netflix观众和溢价连接电视库存。所有的广告服务Netflix将完全可以通过微软平台上。”
这一步可能会改变Netflix的游戏。Forrester报告题为《2022年5月消费者能源指数和零售脉冲调查发现,8%的美国互联网的成年人说他们目前没有Netflix订阅。但是这组将重新考虑他们的决定如果服务和广告提供了一个便宜的选择。此外,该集团6%的股权与Netflix用户表示,他们将切换到由广告支持的层如果价格下降。后者意味着每用户平均收入略有下降。
Forrester的副总裁和首席分析师乔安娜·奥康奈尔在博客中写道,“微软带来游戏桌上,有机会和创新但起源。如果这些新伙伴能将这种下一代的思想转化为更传统的流媒体电视广告生态系统——广告经验是,嗯,就是坏(太多的广告豆荚,太多重复广告)——这就是魔法可能发生。”
Netflix也改变账户共享的过程。关于这个,彼得斯说,“我们一直在幕后工作差不多两年建设推出了技术能力得到这个东西,现在我们还是要放点东西在消费者面前,看看他们的反应。这是一种橡胶满足道路。”
“我们有两个模型。从本质上讲,他们都是相似的,他们问消费者不要停止分享这么多只是为了支付一点不同形式的共享。第一个模型要求支付更添加一个成员,与其他成员分享。第二个模型我们是要更添加一个额外的家庭和分享帐户有额外的家庭,”他了。
使内容王
2013年2月1日,网飞公司做了一个开创性的决定通过释放的完整的第一个赛季的卡片,一个新的系列,。狂看了大量的人气,这种现象会强大。Netflix继续的工作原理是一样的,但其竞争对手采用的更传统的方法每周一个小插曲,这可能会伤害Netflix因为它延伸一个季节和防止退订。
Forrestor报告表明,51%(46%男性和54%女性)的美国在线的成年人使用流媒体服务引用,他们没有取消了流媒体服务的最大原因是因为他们不想错过它的原创内容。
虽然没有准备好改变滴内容,Netflix已经决定改善其内容策略。平台引入了空间音频、3 d音频技术,使用动态头部产生更多的“戏剧”体验,身临其境的音景与德国森海塞尔音频品牌。功能已经推出了221 mn的用户,他们可以使用通过键入“空间音频”到搜索栏,从列表中选择的内容支持它。
也将迪士尼通过旨在创建原始特许经营权,人们可以回来一次又一次,世界不只是产生收入通过他们的续集和副产品但商品、游戏、主题公园等。
“我们的内容费用将继续增长,但这将是更为温和的调整收入的增长。我们认为我们已经得到很多聪明在过去十年左右的“原件”业务,我们可以直接花大部分时间的影响,最大的影响,并为我们的会员满意度最高。这大概是我们思考它,”斯宾塞Neumann说,Netflix的首席财务官,与道格拉斯Anmuth谈话,摩根大通的互联网分析师。
联席首席执行官兼首席内容供应商Ted Sarandos, Netflix,充满希望的Netflix的内容策略。他说,“我们已经看到娱乐商业模式来来去去,我们设法通过所有这些各种各样的经济成长条件和通过所有级别的竞争。我们超级自信,只要我们让电影和电视剧,人们喜欢的游戏,我们将继续领导这个激动人心的和年轻的产业。”
时间会告诉我们如果这个策略成为新的Netflix缕阳光。不幸的是,一个不能binge-watch或快进到真理的那一刻。
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