Netflix increases ad sales commitment
Netflix reported a 150+% increase in ad sales commitments compared to last year. The ad commitments are across categories, and include deals for Squid Game, Wednesday, Outer Banks, Happy Gilmore 2, Ginny & Georgia, and Love is Blind. Additional partnerships involve new live events, including WWE Raw, and Christmas Day NFL games. Since launching the advertising tier in the fall of 2022, Netflix has enhanced efforts to increase advertising to further build up its ad-tier offering. Part of this plan is to launch an internal ad tech platform, which will first be tested in Canada later this year and launched globally in 2025. In May, the ad tier had 40m global MAU, compared to 23m in January.
The Circana Take:
- Netflix’ future rests on its ability to evolve from a subscription only business to one that successfully monetizes advertising. As such, metrics like those cited by the company will be critical to monitor.
Paramount+ plan discounts
Paramount+ is offering new and returning subscribers a 50% discount on an annual subscription to Paramount+ Essential and Paramount+ with Showtime through September 6th. The annual Essential plan costs $29.99 (from $59.99), and the ad-free Paramount+ with Showtime plan costs $59.99 (from $119.99). Both plans offer select NFL games livestreamed, access to 24/7 live news with CBS News, UEFA Champions League matches, and the full Paramount+ library. Paramount+ recently raised its prices for its monthly plans $1-$2, so this limited promo may entice consumers and sports fans to take advantage of this deal.
The Circana Take:
- The company is leveraging its programming assets to lure subscribers and minimize churn by incentivizing an annual contract. It remains to be seen if this sort of promotion will be able to move consumer off the monthly subscribe and churn pattern.
Charter to bundle Paramount+ for free
Speaking of Paramount+, Charter is offering the Paramount+ Essential (ad-supported) plan to all Spectrum TV Select packages for free. Paramount+ Essential streaming access includes programming from CBS, BET, Comedy Central, MTV, Nickelodeon and Paramount Pictures. Charter’s Spectrum customers will have access to over 40,000 TV episodes and movies, such as Tulsa King, Special Ops: Lioness, SpongeBob SquarePants and Big Brother, plus live sports on CBS. Under this new partnership, Charter also plans to launch BET+ Essential for Spectrum TV customers later this year.
The Circana Take:
- Spectrum continues to future their unique approach of packaging SVOD access with pay TV subscriptions. Consumer activation will be key to its success as it’s only a value add if the viewer wants the programming.