Netflix confirms ad-supported plan in the works
At this year’s Cannes Lions advertising festival, Netflix co-CEO Ted Sarandos confirmed that Netflix will be adding a lower cost ad-supported tier. The goal is to attract a consumer base which finds the current pricing plans outside their reach but are open to lower priced plans with ads. No timing for the launch has been provided yet.
The NPD Take:
- By launching a potentially lower-priced ad-supported plan, Netflix looks to regain some of its member base after new subscription sign-ups have cooled off while also finding a new revenue stream to support production spend.
- Price sensitivity has hit the streaming space as consumers start to rationalize spend on subscription services either by cancelling or looking for lower priced plans.
Bally Sports launches streaming app
Sinclair Broadcast Group has launched DTC regional sports streaming network, Bally Sports+. The service will be available in five markets and will cost $19.99/month. Fans do not need to authenticate via another pay TV platform. Additional markets will likely come online in the third quarter. Initially the app will only be available on mobile devices with a Roku launch expected around the baseball all-star break.
The NPD Take:
- Sinclair Broadcast Group, like other regional sports broadcasters, is looking to recoup lost revenues due to increased cord cutting but where demand exists for fans to access local games.
- Sports will be a big focus for streaming over the course of the next couple of years due to the large audience reach and potential revenues.
Tik Tok comes to Vizio Smart TVs
Popular social media app Tik Tok is now available on Vizio Smart TVs. In addition to the app availability on the platform, Tik Tok content will be featured on a custom carousel meant to help discover trending content on the app. Tik Tok has previously also partnered with Google TV, LG and Samsung smart TVs, Amazon Fire TV and other Android TV OS devices.
The NPD Take:
- Tik Tok continues to expand its reach outside of the core mobile app experience. Expanding distribution to in-home screens will allow the app to reach a broader audience.
- For Vizio, the addition of Tik Tok could lead to further acquisition among a key younger demographic while remaining competitive with the other smart TV manufacturers.