Netflix accelerated plans to insert ads into your favorite shows. Before the year is over, Netflix will offer a low-price version supported by advertisements.
A memo sent to Netflix employees this week said, (quote) “HBO and Hulu are able to maintain strong brands while offering an ad-supported service. For good reason, people want lower-priced options.” (New York Times)
The streamer raised rates this year and lost subscribers. Wall Street punished the share price. Only six months ago, Netflix (NFLX) sold at more than $700 per share. Overnight, trading fell below $165.
The celebrity blog Crazy Days and Nights reports that Netflix executives explored a sale on naming rights. (quote) “They want an exclusive advertiser, who is willing to pay a fee similar to what the networks pay to the NFL each year, to be the sole advertiser on the streaming service.”