Needham Sees Netflix's Ad Driven Tier Dependent On Measurement; Looks Forward To CTV Measurement Conference Next Week

  • Needham analyst Laura Martin continues to consider it vital for Netflix, Inc NFLX to launch its ad-driven streaming tier, add Sports and News content, offer bundling with other products, and possibly acquire an extensive film and TV content library. 
  • She saw every major streaming competitor doing one or more of these things, which puts NFLX at a competitive disadvantage. 
  • Further, Martin believed streaming had become a linear TV bundle substitute. 
  • She saw the lowest customer churn achieved by having all content genres, deep libraries, and a free ad-driven tier to attract new customers and upsell them over time.
  • Martin saw the value of NFLX's new ad-driven tier as dependent on measurement. 
  • Needham will host a virtual Measurement Conference on July 12-14. 
  • Confirmed speakers that will discuss the "Future of Measurement" and project winners and losers in the connected TV (CTV) and linear TV advertising measurement space include Innovid Corp CTVViant Technology Inc DSPcomScore, Inc SCORVIZIO Holding Corp VZIOLiveRamp Holdings, Inc RAMP.
  • Additionally, the IAB (Internet Advertising Bureau), Ltd TBLAStagwell Inc STGW, and Perion Network Ltd PERI will speak about the Future of Measurement in the post-cookies world and discuss economic risks and potential upside value drivers after cookie IDs sunset in 2023.
  • Martin reiterated a Hold on Netflix.
  • Price Action: NFLX shares traded lower by 0.40% at $185.16 on the last check Wednesday.
  • Photo via Wikimedia Commons






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