Apparently the “basic plan with ads” for Netflix. According to a report from digidaythe platform of streaming returned money to its advertisers after failing to meet audience targets.
In this sense, the shares of the entertainment company fell 9% after implementing this plan in several countries including Mexico.
According to the report, five agency executives testified to digiday that Netflix has only delivered 80% of the expected audience.
“They can’t deliver. They do not have enough inventory to deliver. So they are literally paying the money back,” one of them said. Although no company spokesperson commented on it.
Why did Netflix return the money to its advertisers?
The company, founded by Reed Hastings, agreed to “cash on delivery” so that its advertisers only pay for the viewers the ads actually reach, so Netflix would return any unspent money at the end of the quarter.
However, not all advertisers claimed their money, according to the report, only those who had marketing campaigns running during this season did and made this decision with the aim of reallocating it before the end of the year.
Likewise, others decided to move the remainder of their investment to the first quarter of 2023, having the vision that the market for the basic plan without ads will grow in the following periods.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.