Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings

382
22
Favorite

Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings

Barron's2022-10-15

Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

382

Report

Comment（22）

Sysy
·2022-10-17
K
Reply
Like
Report
YJ Lee
·2022-10-17
Ok
Reply
Like
Report
neoh
·2022-10-16
Ok
Reply
1
Report
runningjames
·2022-10-16
Holding strong... Any rebound will be surge pattern i believed
Reply
1
Report
jimmylaw
·2022-10-16
OOkk
Reply
3
Report
Fold Replies
- Sysy:
  k
  2022-10-17
  Reply
  Report
Cw_88
·2022-10-16
Jk
Reply
1
Report
AlanChong
·2022-10-16
Ok
Reply
6
Report
i am ok
·2022-10-16
ok
Reply
6
Report
Fold Replies
- Meowlisa:
  Ok
  2022-10-16
  Reply
  Report
- Cw_88:
  ok
  2022-10-16
  Reply
  Report
- i am ok:
  ok
  2022-10-16
  Reply
  Report
Yasmine
·2022-10-16
k
Reply
7
Report
Fold Replies
- AlanChong:
  Ok
  2022-10-16
  Reply
  Report
SMingzz
·2022-10-15
Hmmm
Reply
4
Report
Fold Replies
- SMingzz:
  K
  2022-10-15
  Reply
  Report
nancyrojo
·2022-10-15
👍👍👍
Reply
5
Report
Fold Replies
- nancyrojo:
  lol
  2022-10-30
  Reply
  Report
- missychatty:
  Ok
  2022-10-16
  Reply
  Report
- CW37:
  good
  2022-10-15
  Reply
  Report
cky92
·2022-10-15
Ok
Reply
5
Report
Fold Replies
- Yasmine:
  k
  2022-10-16
  Reply
  Report
Jazling
·2022-10-15
Wow
Reply
7
Report
Fold Replies
- Jazling:
  Ok
  2022-10-15
  Reply
  Report
MrHuattt
·2022-10-15
Okay
Reply
7
Report
Fold Replies
- DarkRaven:
  Ya
  2022-10-15
  Reply
  Report
- MrHuattt:
  Sure
  2022-10-15
  Reply
  Report
Fred Peh
·2022-10-15
👍 they are more focused on customer good signs.
Reply
4
Report
LEESIMON
·2022-10-15
‌[爱心] ‌nice
Reply
Like
Report
iNkwiziTs
·2022-10-15
Good 👍
Reply
6
Report
Fold Replies
- ProtectorK:
  Ok
  2022-10-15
  Reply
  Report
RieslingHawk
·2022-10-15
There's a saying, you can't save a sinking ship, so don't try to catch a falling knife
Reply
5
Report
Fold Replies
- Shungou:
  DYIDD
  2022-10-16
  Reply
  Report
- Alicialian:
  comment
  2022-10-15
  Reply
  Report
oleoleole
·2022-10-15
K
Reply
2
Report
Fold Replies
- nxw:
  Ok
  2022-10-15
  Reply
  Report
TheRainmaker
·2022-10-15
Ok
Reply
2
Report
Fold Replies
- TheRainmaker:
  Ok
  2022-10-15
  Reply
  Report

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2275959422?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2022-10-15 10:02","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2275959422","market":"us","top_or_hot":-1,"title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","media":"Barron's","content":"<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Source Link</a>\n\n</div>\n","source":"lsy1610680873436","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NFLX","symbol_name":"奈飞","start_time":0,"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","article_id":"2275959422","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","pubTimestamp":1665799324,"columns":[],"sourceInfo":{"source_id":"lsy1610680873436","name":"Barron's"},"weMediaInfo":null,"summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","collect":0,"end_time":0,"defaultTopTitle":"barrons.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NFLX":"奈飞"},"translate_title":"Netflix,Inc.的新广告层得到了不同的反应。现在的焦点是收益","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NFLX":0.9},"content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9989176663,"gmtCreate":1665963977252,"gmtModify":1676537683140,"author":{"id":"3581726174893746","authorId":"3581726174893746","name":"Sysy","avatar":"https://static.tigerbbs.com/f89400ba2f20ed80423858c0f6a3d8ee","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581726174893746","authorIdStr":"3581726174893746"},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9989176663","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9989114366,"gmtCreate":1665956301756,"gmtModify":1676537681429,"author":{"id":"4108816210230400","authorId":"4108816210230400","name":"YJ Lee","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4108816210230400","authorIdStr":"4108816210230400"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9989114366","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9989341140,"gmtCreate":1665923243780,"gmtModify":1676537679753,"author":{"id":"3582285682937778","authorId":"3582285682937778","name":"neoh","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582285682937778","authorIdStr":"3582285682937778"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9989341140","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9989389740,"gmtCreate":1665906542880,"gmtModify":1676537678395,"author":{"id":"4117336023184202","authorId":"4117336023184202","name":"runningjames","avatar":"https://community-static.tradeup.com/news/3467c93ce8ec8c583f28f405e68f0c00","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":2,"crmLevelSwitch":1,"idStr":"4117336023184202","authorIdStr":"4117336023184202"},"htmlText":"Holding strong... Any rebound will be surge pattern i believed","listText":"Holding strong... Any rebound will be surge pattern i believed","text":"Holding strong... Any rebound will be surge pattern i believed","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9989389740","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9989947458,"gmtCreate":1665893579875,"gmtModify":1676537676694,"author":{"id":"3570772304712620","authorId":"3570772304712620","name":"jimmylaw","avatar":"https://static.tigerbbs.com/f6c847ae11f03f4682632e6fa4016040","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":6,"crmLevelSwitch":1,"idStr":"3570772304712620","authorIdStr":"3570772304712620"},"htmlText":"OOkk","listText":"OOkk","text":"OOkk","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9989947458","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104375585,"gmtCreate":1665964512624,"gmtModify":1665964516024,"authorId":3581726174893746,"author":{"id":3581726174893746,"idStr":"3581726174893746","authorId":3581726174893746,"name":"Sysy","avatar":"https://static.tigerbbs.com/f89400ba2f20ed80423858c0f6a3d8ee","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9989947458,"type":1,"supId":0,"prevId":0,"content":"<u>k</u>","text":"<u>k</u>","html":"<u>k</u>"}],"langContent":"EN"},{"id":9989073704,"gmtCreate":1665879835509,"gmtModify":1676537673814,"author":{"id":"3582802124387192","authorId":"3582802124387192","name":"Cw_88","avatar":"https://static.tigerbbs.com/73601b77e177185676fe499badeea2f7","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3582802124387192","authorIdStr":"3582802124387192"},"htmlText":"Jk","listText":"Jk","text":"Jk","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9989073704","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9989079436,"gmtCreate":1665879728825,"gmtModify":1676537673782,"author":{"id":"4125148185432112","authorId":"4125148185432112","name":"AlanChong","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":4,"crmLevelSwitch":0,"idStr":"4125148185432112","authorIdStr":"4125148185432112"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9989079436","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9989054616,"gmtCreate":1665877523636,"gmtModify":1676537673375,"author":{"id":"3583010094291363","authorId":"3583010094291363","name":"i am ok","avatar":"https://static.tigerbbs.com/a3e36ab40e4050fb2c6704581088947a","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3583010094291363","authorIdStr":"3583010094291363"},"htmlText":"ok","listText":"ok","text":"ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/9989054616","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104371840,"gmtCreate":1665921846775,"gmtModify":1665921849947,"authorId":3585789628360174,"author":{"id":3585789628360174,"idStr":"3585789628360174","authorId":3585789628360174,"name":"Meowlisa","avatar":"https://community-static.tradeup.com/news/d4201545a2ca6590a1c7760d87393e86","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9989054616,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104364600,"gmtCreate":1665879842752,"gmtModify":1665879843824,"authorId":3582802124387192,"author":{"id":3582802124387192,"idStr":"3582802124387192","authorId":3582802124387192,"name":"Cw_88","avatar":"https://static.tigerbbs.com/73601b77e177185676fe499badeea2f7","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9989054616,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"},{"id":104364230,"gmtCreate":1665877529299,"gmtModify":1665877532497,"authorId":3583010094291363,"author":{"id":3583010094291363,"idStr":"3583010094291363","authorId":3583010094291363,"name":"i am ok","avatar":"https://static.tigerbbs.com/a3e36ab40e4050fb2c6704581088947a","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9989054616,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">ok</span>","text":"<span class=\"s1\">ok</span>","html":"<span class=\"s1\">ok</span>"}],"langContent":"EN"},{"id":9989060390,"gmtCreate":1665861629610,"gmtModify":1676537672458,"author":{"id":"3561068447430372","authorId":"3561068447430372","name":"Yasmine","avatar":"https://static.tigerbbs.com/71c13e4946ddfd57b4dd685297e6facc","vip":1,"crmLevel":4,"crmLevelSwitch":1,"idStr":"3561068447430372","authorIdStr":"3561068447430372"},"htmlText":"k","listText":"k","text":"k","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9989060390","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104364577,"gmtCreate":1665879739402,"gmtModify":1665879742739,"authorId":4125148185432112,"author":{"id":4125148185432112,"idStr":"4125148185432112","authorId":4125148185432112,"name":"AlanChong","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.09.19","exceedPercentage":"80.21%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9989060390,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"},{"id":9989032131,"gmtCreate":1665846363423,"gmtModify":1676537671702,"author":{"id":"4124852239976342","authorId":"4124852239976342","name":"SMingzz","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"4124852239976342","authorIdStr":"4124852239976342"},"htmlText":"Hmmm","listText":"Hmmm","text":"Hmmm","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9989032131","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104362491,"gmtCreate":1665846375025,"gmtModify":1665846378729,"authorId":4124852239976342,"author":{"id":4124852239976342,"idStr":"4124852239976342","authorId":4124852239976342,"name":"SMingzz","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9989032131,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">K</span>","text":"<span class=\"s1\">K</span>","html":"<span class=\"s1\">K</span>"}],"langContent":"EN"},{"id":9980779711,"gmtCreate":1665833420034,"gmtModify":1676537670600,"author":{"id":"4101105251247490","authorId":"4101105251247490","name":"nancyrojo","avatar":"https://community-static.tradeup.com/news/5deeab2f65af6b8d81ccc47a17715ffd","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"4101105251247490","authorIdStr":"4101105251247490"},"htmlText":"👍👍👍","listText":"👍👍👍","text":"👍👍👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/9980779711","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104582190,"gmtCreate":1667139120521,"gmtModify":1667139123877,"authorId":4101105251247490,"author":{"id":4101105251247490,"idStr":"4101105251247490","authorId":4101105251247490,"name":"nancyrojo","avatar":"https://community-static.tradeup.com/news/5deeab2f65af6b8d81ccc47a17715ffd","vip":1,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980779711,"type":1,"supId":0,"prevId":0,"content":"<u>lol</u>","text":"<u>lol</u>","html":"<u>lol</u>"},{"id":104365154,"gmtCreate":1665882129175,"gmtModify":1665882132627,"authorId":3560333139103013,"author":{"id":3560333139103013,"idStr":"3560333139103013","authorId":3560333139103013,"name":"missychatty","avatar":"https://static.tigerbbs.com/d75cdb42cbca99e3666b7b1796540245","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980779711,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104362744,"gmtCreate":1665848173824,"gmtModify":1665848176988,"authorId":4087473897023050,"author":{"id":4087473897023050,"idStr":"4087473897023050","authorId":4087473897023050,"name":"CW37","avatar":"https://static.tigerbbs.com/8017b0b5389b68d3666c7996d3950287","vip":1,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980779711,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">good</span>","text":"<span class=\"s1\">good</span>","html":"<span class=\"s1\">good</span>"}],"langContent":"EN"},{"id":9980724185,"gmtCreate":1665822083948,"gmtModify":1676537669797,"author":{"id":"4127309136508732","authorId":"4127309136508732","name":"cky92","avatar":"https://community-static.tradeup.com/news/30bf8de6f8868dfb35bef0e86df9a12b","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"4127309136508732","authorIdStr":"4127309136508732"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9980724185","repostId":2275959422,"repostType":2,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104363258,"gmtCreate":1665861635670,"gmtModify":1665861638903,"authorId":3561068447430372,"author":{"id":3561068447430372,"idStr":"3561068447430372","authorId":3561068447430372,"name":"Yasmine","avatar":"https://static.tigerbbs.com/71c13e4946ddfd57b4dd685297e6facc","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980724185,"type":1,"supId":0,"prevId":0,"content":"<u>k</u>","text":"<u>k</u>","html":"<u>k</u>"}],"langContent":"EN"},{"id":9980760097,"gmtCreate":1665816266519,"gmtModify":1676537669273,"author":{"id":"3566821013640470","authorId":"3566821013640470","name":"Jazling","avatar":"https://static.tigerbbs.com/85e0a83573d9307f57fca9b2baed72af","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"3566821013640470","authorIdStr":"3566821013640470"},"htmlText":"Wow","listText":"Wow","text":"Wow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9980760097","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104359298,"gmtCreate":1665816273407,"gmtModify":1665816276594,"authorId":3566821013640470,"author":{"id":3566821013640470,"idStr":"3566821013640470","authorId":3566821013640470,"name":"Jazling","avatar":"https://static.tigerbbs.com/85e0a83573d9307f57fca9b2baed72af","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.07.25","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980760097,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"},{"id":9980737242,"gmtCreate":1665810823786,"gmtModify":1676537668619,"author":{"id":"4089116574465250","authorId":"4089116574465250","name":"MrHuattt","avatar":"https://community-static.tradeup.com/news/e67f8f8c2b0192fadc4cd499a84e6c8b","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"4089116574465250","authorIdStr":"4089116574465250"},"htmlText":"Okay","listText":"Okay","text":"Okay","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9980737242","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104360026,"gmtCreate":1665821473800,"gmtModify":1665821477281,"authorId":3578097586468199,"author":{"id":3578097586468199,"idStr":"3578097586468199","authorId":3578097586468199,"name":"DarkRaven","avatar":"https://static.tigerbbs.com/f931425b992eebdac73826679fa69afc","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.07.07","exceedPercentage":"93.80%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":8,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980737242,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ya</span>","text":"<span class=\"s1\">Ya</span>","html":"<span class=\"s1\">Ya</span>"},{"id":104358498,"gmtCreate":1665810827631,"gmtModify":1665810835445,"authorId":4089116574465250,"author":{"id":4089116574465250,"idStr":"4089116574465250","authorId":4089116574465250,"name":"MrHuattt","avatar":"https://community-static.tradeup.com/news/e67f8f8c2b0192fadc4cd499a84e6c8b","vip":1,"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980737242,"type":1,"supId":0,"prevId":0,"content":"<u>Sure</u>","text":"<u>Sure</u>","html":"<u>Sure</u>"}],"langContent":"EN"},{"id":9980733843,"gmtCreate":1665809018882,"gmtModify":1676537668358,"author":{"id":"4102486863616990","authorId":"4102486863616990","name":"Fred Peh","avatar":"https://community-static.tradeup.com/news/d395a7a925dcfe6700a04687c8b94ed0","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"4102486863616990","authorIdStr":"4102486863616990"},"htmlText":"👍 they are more focused on customer good signs.","listText":"👍 they are more focused on customer good signs.","text":"👍 they are more focused on customer good signs.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9980733843","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9980730763,"gmtCreate":1665808610852,"gmtModify":1676537668314,"author":{"id":"3579044609497336","authorId":"3579044609497336","name":"LEESIMON","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":8,"crmLevelSwitch":1,"idStr":"3579044609497336","authorIdStr":"3579044609497336"},"htmlText":"‌<a href=\"\">[爱心]&nbsp;</a>‌nice","listText":"‌<a href=\"\">[爱心]&nbsp;</a>‌nice","text":"‌[爱心] ‌nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9980730763","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9980703966,"gmtCreate":1665804535455,"gmtModify":1676537667618,"author":{"id":"3569473957254831","authorId":"3569473957254831","name":"iNkwiziTs","avatar":"https://static.tigerbbs.com/7cfab89f2382be8e231dff17c4383110","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":5,"crmLevelSwitch":1,"idStr":"3569473957254831","authorIdStr":"3569473957254831"},"htmlText":"Good 👍","listText":"Good 👍","text":"Good 👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9980703966","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104358411,"gmtCreate":1665810273671,"gmtModify":1665810287531,"authorId":3576809938838823,"author":{"id":3576809938838823,"idStr":"3576809938838823","authorId":3576809938838823,"name":"ProtectorK","avatar":"https://static.tigerbbs.com/0f4a0243c51fa5f1ce93b852ff65effc","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980703966,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"},{"id":9980471205,"gmtCreate":1665803612307,"gmtModify":1676537667350,"author":{"id":"3578973717832794","authorId":"3578973717832794","name":"RieslingHawk","avatar":"https://static.tigerbbs.com/a5390eacc9599c6447d4c42f983fcc76","vip":1,"hat":"https://static.tigerbbs.com/d30fc324d24ff33075e053005564f0df","crmLevel":2,"crmLevelSwitch":1,"idStr":"3578973717832794","authorIdStr":"3578973717832794"},"htmlText":"There's a saying, you can't save a sinking ship, so don't try to catch a falling knife","listText":"There's a saying, you can't save a sinking ship, so don't try to catch a falling knife","text":"There's a saying, you can't save a sinking ship, so don't try to catch a falling knife","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9980471205","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104365721,"gmtCreate":1665883988568,"gmtModify":1665883992056,"authorId":3585374186568444,"author":{"id":3585374186568444,"idStr":"3585374186568444","authorId":3585374186568444,"name":"Shungou","avatar":"https://static.tigerbbs.com/f6e6be94f96866fa41be592e567fcacd","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"80.47%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980471205,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">DYIDD</span>","text":"<span class=\"s1\">DYIDD</span>","html":"<span class=\"s1\">DYIDD</span>"},{"id":104358013,"gmtCreate":1665807554921,"gmtModify":1665807558895,"authorId":3575621913630705,"author":{"id":3575621913630705,"idStr":"3575621913630705","authorId":3575621913630705,"name":"Alicialian","avatar":"https://static.tigerbbs.com/52404e0dd99a939e64e5eaeb8cda47b7","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980471205,"type":1,"supId":0,"prevId":0,"content":"<u>comment</u>","text":"<u>comment</u>","html":"<u>comment</u>"}],"langContent":"EN"},{"id":9980447045,"gmtCreate":1665802910087,"gmtModify":1676537667217,"author":{"id":"4087388821618810","authorId":"4087388821618810","name":"oleoleole","avatar":"https://community-static.tradeup.com/news/ceb13300e5ed4b71c1e82cc24f6588ff","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":1,"crmLevelSwitch":0,"idStr":"4087388821618810","authorIdStr":"4087388821618810"},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9980447045","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104360073,"gmtCreate":1665822074102,"gmtModify":1665822077749,"authorId":3555755639757611,"author":{"id":3555755639757611,"idStr":"3555755639757611","authorId":3555755639757611,"name":"nxw","avatar":"https://static.tigerbbs.com/0a3041e78835567c8db5934504534a17","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.07.14","exceedPercentage":"80.52%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980447045,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"},{"id":9980442072,"gmtCreate":1665802360896,"gmtModify":1676537667138,"author":{"id":"3562288345465729","authorId":"3562288345465729","name":"TheRainmaker","avatar":"https://static.tigerbbs.com/a2446b188392bb216f8e13ba56e44832","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3562288345465729","authorIdStr":"3562288345465729"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9980442072","repostId":2275959422,"repostType":4,"repost":{"id":"2275959422","kind":"highlight","pubTimestamp":1665799324,"share":"https://ttm.financial/m/news/2275959422?lang=&edition=fundamental","pubTime":"2022-10-15 10:02","market":"us","language":"en","title":"Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings","url":"https://stock-news.laohu8.com/highlight/detail?id=2275959422","media":"Barron's","summary":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising str","content":"<html><head></head><body><p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.</p><p>Before we get into the details of the debate, let&#39;s take a minute to consider what a breathtaking change of direction this is for the world&#39;s leading subscription-based video-streaming service.</p><p>While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company&#39;s choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.</p><p>In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn&#39;t selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.</p><p>To create a $5 billion or $10 billion ad business, Netflix would have to &#34;rip that away&#34; from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.</p><p>&#34;We&#39;ve got a much simpler business model which is just focused on streaming and customer pleasure,&#34; Hastings said. &#34;We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don&#39;t have the exposure to something that we&#39;re strategically disadvantaged at, which is online advertising against those big three.&#34;</p><p>Well, of course, that was then, and this is now.</p><p>Netflix&#39;s subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.</p><p>As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new &#34;Basic with Ads&#34; subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.</p><p>Subscribers to the plan will be limited to a single device at a time and won&#39;t be able to download shows for offline viewing. For licensing reasons, some unspecified content won&#39;t be available on the advertising tier.</p><p>Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company&#39;s third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.</p><p>The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street&#39;s consensus estimates are in line with management&#39;s guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.</p><p>UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.</p><p>While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.</p><p>Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. &#34;The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix&#39;s Basic with Ads,&#34; he wrote. &#34;We see limited consumer interest in Netflix&#39;s 1 stream plan, since most houses have over 2 people and multiple streaming devices.&#34;</p><p>He kept his Neutral rating on the stock.</p><p>Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are &#34;geared to the downside.&#34; Among other things, he said the timing for a new advertising platform &#34;is not favorable&#34; given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be &#34;repelled&#34; by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.</p><p>Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is &#34;the biggest catalyst across the internet sector&#34; and will &#34;materially boost the value of Netflix to consumers,&#34; reduce churn and expand gross subscriber additions, he said in a research note.</p><p>And the benefits of offering ads aren&#39;t reflected in current Wall Street forecasts for Netflix&#39;s financial performance or in the stock&#39;s valuation, Mahaney wrote. He kept his target of $300 for Netflix&#39;s stock price.</p><p>Netflix shares fell 1.1% to $230 on Friday.</p></body></html>","source":"lsy1610680873436","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix's New Ad Tier Gets Mixed Reactions. Now the Focus Is on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-15 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although ...</p>\n\n<a href=\"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://www.barrons.com/articles/netflix-ads-earnings-51665770684?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2275959422","content_text":"Netflix is getting a generally bullish reaction from Wall Street analysts to its new advertising strategy. Bulls see the addition of an ad-supported subscription tier boosting revenue, although skeptics think the specifics of the new plan will make it unappealing to most viewers.Before we get into the details of the debate, let's take a minute to consider what a breathtaking change of direction this is for the world's leading subscription-based video-streaming service.While analysts and investors pressed Netflix (ticker: NFLX) CEO Reed Hastings for years on the company's choice not to sell advertising, he emphatically made the case that both viewers and the business were better off with a pure subscription model. Ads were likely to make the Netflix experience worse. he argued.In early 2020, just before the pandemic, Hastings was asked for the umpteenth time about why Netflix wasn't selling ads. He said it would be difficult for the company to compete in the market for digital advertising with Google, Facebook and Amazon.com.To create a $5 billion or $10 billion ad business, Netflix would have to \"rip that away\" from the other platforms, he said, arguing that making money in advertising over the long term would be a battle.\"We've got a much simpler business model which is just focused on streaming and customer pleasure,\" Hastings said. \"We think with our model that we will actually get to a larger revenue, a larger profit, larger market cap, because we don't have the exposure to something that we're strategically disadvantaged at, which is online advertising against those big three.\"Well, of course, that was then, and this is now.Netflix's subscriber numbers soared during the pandemic, but they have since come back to Earth. Subscribership fell during both of the past two quarters. The March quarter numbers were so shockingly bad -- the company lost 200,000 subscribers after projecting 2.5 million net additions -- that Hastings said on the earnings call that Netflix was considering adding ad-supported service, but that it would be phased in over several years.As it turned out, it took just six months for the company to dream up an advertising strategy. The company will offer the new \"Basic with Ads\" subscription tier to U.S. customers starting Nov. 3 at $6.99 a month, three bucks below the current bare-bones Basic plan. Netflix said it would include 4 to 5 minutes an hour of 15- and 30-seconds ads, both before and during movies and television programs.Subscribers to the plan will be limited to a single device at a time and won't be able to download shows for offline viewing. For licensing reasons, some unspecified content won't be available on the advertising tier.Wall Street is generally supportive of the Netflix strategy, and likewise thinks that the company's third-quarter earnings report, due on Tuesday, should show some improvement from the June quarter. For the quarter, Netflix has projected revenue of $7.84 billion, up 4.7% from a year ago, with profits of $2.14 a share.The company expects to add one million net new subscribers in the quarter, which would boost the total to 221.7 million. While Wall Street's consensus estimates are in line with management's guidance on both revenue and profits, analysts expect 1.1 million net new subscribers as the addition of 1.8 million international accounts is offset by a loss of about 700,000 in the U.S.UBS analyst John Hodulik on Friday lifted his target price on Netflix shares to $250, from $198, but kept his Neutral rating on the stock. He has some doubts about demand for the ad-based service.While he says the ad-supported tier will add to both revenue and profitability -- he sees an eventual 10% boost to revenue -- that will take some time. The single-stream plan unveiled Thursday will have limited appeal, Hodulik says, though he believes the company could eventually offer additional ad tiers with more features.Rosenblatt Securities analyst Barton Crockett likewise has doubts about the appeal of the new plan. \"The most powerful force in subscriptions is inertia, and a need to switch will greatly limit the number of users of Netflix's Basic with Ads,\" he wrote. \"We see limited consumer interest in Netflix's 1 stream plan, since most houses have over 2 people and multiple streaming devices.\"He kept his Neutral rating on the stock.Benchmark analyst Matthew Harrigan, who kept a Sell rating and $157 target price on the stock, thinks that the medium-term risks in the stock are \"geared to the downside.\" Among other things, he said the timing for a new advertising platform \"is not favorable\" given the weak consumer economy. The lack of sports programming could be an issue for the Netflix ad strategy, he said, suggesting that some advertisers could be \"repelled\" by shows such as Squid Game and a new series about the serial killer Jeffrey Dahmer.Evercore ISI analyst Mark Mahaney, who rates the stock at Outperform, is more upbeat. The addition of an advertising tier is \"the biggest catalyst across the internet sector\" and will \"materially boost the value of Netflix to consumers,\" reduce churn and expand gross subscriber additions, he said in a research note.And the benefits of offering ads aren't reflected in current Wall Street forecasts for Netflix's financial performance or in the stock's valuation, Mahaney wrote. He kept his target of $300 for Netflix's stock price.Netflix shares fell 1.1% to $230 on Friday.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104356848,"gmtCreate":1665802366771,"gmtModify":1665802370372,"authorId":3562288345465729,"author":{"id":3562288345465729,"idStr":"3562288345465729","authorId":3562288345465729,"name":"TheRainmaker","avatar":"https://static.tigerbbs.com/a2446b188392bb216f8e13ba56e44832","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9980442072,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":382,"commentSize":22,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}