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CandW discuss Netflix hitting 50M US subs, new TV ad data

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Netflix subscriber growth numbers were a little disappointing, but the company still managed to break the 50M level in the US market. New approaches to data gathering are TV ads compete with digital.

Chapter 1: Netflix breaks 50M U.S. subscribers (3:00)

Despite not achieving the subscriber growth goals the company had set itself, Netflix achieved something no other pay video service has: 50 million U.S. subscribers. This is an amazing accomplishment for a company that has been streaming video for less than 10 years.

The company still doesn’t think Amazon is a direct competitor, but it does think that sleep is! Reed Hastings, Netflix CEO, sees consumers binge watching shows and staying up too late. That led him to comment that Netflix was “competing with sleep on the margin.”

Netflix is not that excited with how downloads are impacting the market. The company says subscribers in Western markets just aren’t using that much. Will still thinks it is an important. I disagree, saying that uncapped mobile plans will erode the usefulness of downloads ever more.

Chapter 2: TV ads is getting data enabled (11:30)

Will discussed new data from Videology. Ad buyers think that programmatic will account for half of TV ads in 3 to 5 years. This is a very bullish statement, according to Will. This is partly in response to Google and Facebook competing for TV ad dollars.

The Videology report makes the point that ad buyers are planning holistically. That is, they are looking at the whole ad pie, including digital and TV, rather than treating money allocated to both separately. TV ads are at a distinct disadvantage in this situation, because digital can present lots of data of ad effectiveness.

iSpot TV is providing a new monitoring solution that improves data on TV ad attribution and conversion. The tool can track conversion in the digital realm for viewers that have been exposed to TV ad campaigns. This closes the loop on the effectiveness of the TV ad.  For example, it captures activity like when a person goes to a website to search for information as the result of seeing a TV ad.

 

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