Top Stories
Netflix in talks with Hollywood studios for new tier with ads – WSJ
Global Banking & Finance Review®
Company
(Reuters) – Netflix Inc is looking to tweak its programming deals with Hollywood studios to enable the streaming pioneer’s launch of an advertising-supported version of its service, the Wall Street Journal reported on Tuesday.
(Reuters) – Netflix Inc is looking to tweak its programming deals with Hollywood studios to enable the streaming pioneer’s launch of an advertising-supported version of its service, the Wall Street Journal reported on Tuesday.
The company has started talks with Warner Bros., Universal and Sony Pictures Television, the report said, citing people familiar with the matter. (https://on.wsj.com/3yCGIa7)
It will also need to renegotiate agreements for older television shows such as “Breaking Bad” from Sony and “NCIS” from Paramount Global, according to the report.
The companies did not immediately respond to a Reuters request for comment.
Earlier in June, co-CEO Ted Sarandos said Netflix is in talks with several companies for advertising partnerships.
After losing subscribers for the first time in a decade and projecting a 2 million decline in the upcoming quarter, Netflix said in April it was considering the launch of a lower-priced tier with advertising.
Netflix’s most formidable challenger – Walt Disney Co’s Disney+ – has also said it would introduce an ad-supported tier, as the pandemic boom in streaming fades, competition tightens and rising inflation pinches consumer spending on entertainment.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Devika Syamnath)
Advertising revenue is the income generated from advertisements displayed on a platform. For companies like Netflix, it represents a significant source of income, especially with new ad-supported tiers.
A subscription model is a business strategy where customers pay a recurring fee to access a product or service, such as streaming platforms like Netflix.
Content licensing is the process of obtaining rights to use or distribute content created by others, often involving negotiations with studios for shows and movies.
Explore more articles in the Top Stories category
