3
With an offer supported by advertising approaching, Netflix must quickly find a partner comfortable in the matter. Discussions are underway with players like Google. In France, we fear the birth of a new advertising ogre.
© SOPA Images – Getty Images
Now that Netflix has registered the arrival of advertising on its service – in a less expensive formula than the three already existing – we will have to prepare the ground. Especially since throughout its existence, the Los Gatos platform has always kept away from this type of consideration and therefore has no experience in this area. We must therefore seek partners.
Google, Comcast or Roku?
According to CNBC, Netflix executives met several potential partners, including the undisputed champion in this field: Google. NBCUniversal, a subsidiary of Comcast, also exchanged with the red N on this subject, just like Roku which was a few weeks ago at the heart of a rumor of takeover by Netflix, precisely. The latter would seek to find a partner in the next two or three months, but also to appoint a leader for this division in stride. It is therefore rather urgent.
As CNBC reminds us, every potential ally has its pros and cons. Google is powerful, but inexperienced in the field of entertainment. NBCUniversal, on the other hand, knows this environment perfectly, but has a lesser strike force. However, it has just been strengthened via a juicy similar distribution contract with Apple. As for Roku, its specialist profile is interesting, but its expertise may be limited to the American continent alone, while Netflix’s growth will probably be sought in other markets.
Once the agreement has been signed, Netflix will still have to draw the outlines of its advertising strategy: how many minutes of advertisements per hour of content? When in a program? No information has filtered on this side for the moment, while Disney +, which will also launch on this segment, has already revealed certain orientations.
The French advertising market is worried
In France, the two SVoD giants are worrying the locals, especially the television channels. Le Figaro quotes the estimate produced by a large French media group: if Netflix and Disney + reached 20% of French households, they could capture around 180 million euros in annual revenue by 2024, after a year of running-in. The equivalent of the French television market in replay in its entirety in 2021.
The two platforms could also absorb half of the growth of the online video advertising market, which represents 2 billion euros. The 50% being the prerogative of social networks like Instagram, Facebook or TikTok, television channels could quickly find themselves in the water. Especially since Netflix has much more advanced targeting capabilities. It will not be easy to spare the goat and the cabbage in this story.