The Trade Desk TTD will be the company working with Netflix to deliver ads to customers.
Netflix (NFLX) subscriber growth has hit a wall as the streaming giant just reported that it lost 200,000 subscribers in 1Q22 and another 2 million subscribers are expected to lose in the 22 2nd quarter. . About 3 years ago, the trade office (NASDAQ: TTD) CEO Jeff Green predicted that Netflix would sell advertising. Today, that prediction has come true.
In conclusion, this is an optimistic signal for the Trade Desk, as the independent platform is a major beneficiary of the secular transition from traditional TV advertising to CTV advertising. Simply put, Netflix's decision to offer a sustained level of advertising will only accelerate the decline in linear advertising budgets, as Discovery +, HBO, Hulu and Disney + have moved to (or announced that they will enter) AVOD (Video On Demand based on advertising). scenery.
Only time will tell how this all shakes out.
I personally suspect it will be tiered pricing for ads vs ad free.
The question is will it be profitable vs lost customer base over ads.
Netflix (NFLX) subscriber growth has hit a wall as the streaming giant just reported that it lost 200,000 subscribers in 1Q22 and another 2 million subscribers are expected to lose in the 22 2nd quarter. . About 3 years ago, the trade office (NASDAQ: TTD) CEO Jeff Green predicted that Netflix would sell advertising. Today, that prediction has come true.
In conclusion, this is an optimistic signal for the Trade Desk, as the independent platform is a major beneficiary of the secular transition from traditional TV advertising to CTV advertising. Simply put, Netflix's decision to offer a sustained level of advertising will only accelerate the decline in linear advertising budgets, as Discovery +, HBO, Hulu and Disney + have moved to (or announced that they will enter) AVOD (Video On Demand based on advertising). scenery.
Only time will tell how this all shakes out.
I personally suspect it will be tiered pricing for ads vs ad free.
The question is will it be profitable vs lost customer base over ads.