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root_fifth_octave t1_j5380ar wrote

Well, not seeing ads is one of the reasons people pay for Netflix.

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Braemaria t1_j53dwhb wrote

I'm surprised they thought eliminating some shows and substituting ads for a lower monthly fee was a good idea.

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root_fifth_octave t1_j53f2f2 wrote

They also raised prices, arguably lowered the average quality, etc within a pretty short timeframe.

Seems questionable, but I guess they’ve got room to experiment.

If the ad tier does somehow take off, the experiment will have worked.

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CptNonsense t1_j556u9p wrote

>I'm surprised they thought eliminating some shows

Netflix has a fucking ton of shows

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yankeesown t1_j53bn39 wrote

There is our rivalry!

There was only a 15-year jump in it. The same problems that cable had are now being caused by an excess of streaming websites.

"Theaters are dead," you say.

Hmm. This week's news:

"Avatar 2 is grossing billions," "Netflix is having trouble,"

Theaters are the best, I agree.

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root_fifth_octave t1_j53cmp1 wrote

It could end up a similar place as cable, with bundles, tiers & all that.

Theaters are great, but do depend on the quality of the people you’re around.

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TheSeventhAnimorph t1_j54lq1w wrote

I've only once ever had a bad experience with other people in a movie theater, and I used to go to movies practically every week. (I don't go as much now, but it has nothing to do with the actual experience or anything; there's just more to watch at home and stuff usually comes out to watch at home faster than it used to.) That experience was at The Secret Life of Pets, and there was a group of (presumably) teenagers that just kept being obnoxious throughout the whole movie.

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root_fifth_octave t1_j56wwky wrote

Yeah, probably the sort of thing where everyone’s experience is a little different.

Most of my experiences have been fine. The vast majority, really. But there have also been enough shitty ones to make it a consideration.

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SillyMikey t1_j52zdd6 wrote

You mean people don’t enjoy seeing ads? Shocking news. More at 11.

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WarOnDurgz t1_j533b2s wrote

I wonder how much Netflix paid the marketing firm who told them that the key to increasing revenue was to:

-Hike prices

-Push ads

-End password sharing

-Cancel everything people like

Wish I could make that much money to be that wrong.

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Neo2199 t1_j535a5l wrote

Netflix's Guide on How to Lose Friends Subscribers & Alienate People!

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ijakinov t1_j539aky wrote

But they did increase revenue YOY. The article is a prediction from days ago and they announced things today.

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Similar-Collar1007 t1_j567y24 wrote

JFC people do not fucking read or understand Netflix and how they do cancellations and it shows nobody watches or finishes the show it gets cancelled simple as that

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Bergerboy14 t1_j52zkft wrote

Who could’ve seen this coming?? 😱

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reddig33 t1_j532s61 wrote

In contrast to the other thread gloating that they added subscribers. Also, they missed projected earnings by over 70% last quarter.

https://www.nasdaq.com/articles/netflix-inc.-announces-fall-in-q4-income-misses-estimates

“The company's earnings came in at $55.28 million, or $0.12 per share. This compares with $607.43 million, or $1.33 per share, in last year's fourth quarter.”

So, raised prices, added subscribers, started showing ads — and yet earnings are way down. Could explain the program cancellations. Still having to pinch pennies.

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ijakinov t1_j537nv0 wrote

From their letter, $462M of earnings was something to do with weak US dollar and debt owed in euros.

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Lobisativa t1_j538xdh wrote

You mean that despite the fact that the business initially declared they would never run ads on their platform, people aren't clamouring to sign up for an ad plan with less content? Weird.

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tv_junkie_123 t1_j5375cn wrote

I wonder how the ad plan for Disney is doing since they both seemed to launch at the same time. Is the issue the ads or that not all Netflix shows are available on the ad plan?

Cause I know some friends who were willing to switch to the ad plan for the cheaper price, but backed out when they heard they wouldn't have all of Netflix. That shows like the Crown would not be on the ad tier.

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goatjugsoup t1_j532b14 wrote

Ads, coming down on account sharing, cancelling shows on a dime perpetuating a loop of low trust, low viewership...

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spitefulcum t1_j5378e4 wrote

outdated information. Netflix added 7 million subs, not 4.5 like this article says

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doingmenotyou t1_j57ye0x wrote

Hey Netflix: I can tell you adding commercials won’t help

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dragonmp93 OP t1_j52zl9j wrote

> Jan 17 (Reuters) - Netflix Inc (NFLX.O) is expected to report its slowest quarterly revenue growth on Thursday as its ad-supported plan struggles to attract customers in the saturating U.S. market, which could pressure the company to pull back on content spending this year.

> The streaming pioneer has been reeling under strained consumer spending, rising costs of financing production and increased competition from Disney+ and Amazon Prime. It had pinned its hopes on the launch of the ad-supported tier, but analysts say they have not seen a burst of subscriptions.

> The company is expected to have added 4.5 million subscribers - the lowest addition for the holiday period since 2014. It added 8.3 million subscribers a year ago.

> The $6.99 per month ad-supported plan does not have access to all titles and is not cheap enough to win over significant numbers of customers in the United States and Canada, analysts say.

> "Looking at the saturation of the market and the variety of different options available, and the fact that the pricing is not necessarily significantly below the competition, there are some challenges in attaining those subscriber targets," said Jamie Lumley, an analyst at Third Bridge.

> That is likely to draw focus on Netflix's aggressive content spending, which finance chief Spencer Neumann said in July would total about $17 billion annually for the next couple of years.

> "When debt was cheap, you could go and borrow a lot of money and invest that in content," said Shahid Khan, partner and global head of media and entertainment at Arthur D. Little.

> "Given current interest rates, Netflix will have to be very selective about green-lighting content and how they would finance it." For comparison, rival Walt Disney Co (DIS.N) expects fiscal 2023 content spend in the low $30 billion range, while Paramount Global (PARA.O) projects expenditure of below $10 billion. Disney does not break out content expenditure between streaming and its other divisions.

> CONTEXT

> Netflix had suffered hefty subscriber losses in the first six months of 2022 due to the fallout from the Russia-Ukraine conflict and a weakening economy, which forced the streaming pioneer to turn to advertising in a move it long resisted.

> It returned to subscriber growth in the third quarter, but its stock, an investor favorite during its years of rapid growth, still ended the year with a drop of more than 50%.

> The company's revenue is expected to have risen just 1.7% to $7.84 billion in the October-December quarter, according to Refinitiv. That would be the lowest since it went public in 2002.

> "As overall streaming growth flattens out, most of the more mature streaming platforms have leveled off as well," MoffettNathanson said, adding that Netflix's reach fell by 200 basis points in the quarter.

> Still, some analysts believe that the ad-supported plan will pay off in the long run, especially in developing markets, where spending power is weaker.

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ArsBrevis t1_j5347rd wrote

But I was told that all the people questioning Netflix's success are haters?

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Ma5cmpb t1_j535r9e wrote

This post was from yesterday. Today they announced they the beat expectations.

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[deleted] t1_j55n9zd wrote

I mean, they're idiots anyway. Netflix was and still is a success.

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skellener t1_j533g8n wrote

Who would have seen that coming? /s 🤦‍♂️

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[deleted] t1_j54nq9c wrote

I certainly didn’t know it existed already lol

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DarkAthena t1_j532xs9 wrote

No. You must be joking. </s>

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