TheWrap has learned that Netflix is abandoning its plans for an in-person presentation next week and switching to a virtual-only event.
A message sent to advertisers on Wednesday evening said, “We want to let you know that we have made the decision to move our Upfront event at the Paris Theater from in-person to virtual on Wednesday, May 17 at 5 p.m. ET Is.” “We look forward to sharing with you our progress on the commercials and upcoming slate. We’ll share more details next week.”
The streamer didn’t reveal the reason behind the sudden change of plans.
The move comes as the Writers Guild of America is on strike for the first time since November 2007, when the group was unable to reach an agreement in contract talks with the Alliance of Motion Picture and Television Producers. The strike includes a long list of concerns writers want Hollywood studios to address, from the low pay involved in writing streaming series to addressing the use of artificial intelligence used to skirt contract pay practices. Restraint “mini-room”.
WGA members have already picketed outside Peacock’s Newfront presentation in New York City, Netflix’s headquarters in both New York City and Los Angeles, and Disney, Fox, Warner Bros., Paramount and Universal in Burbank, Los Angeles and Universal City.
“We respect writers and we respect the WGA and we couldn’t be here without them. We don’t want a strike. The last time there was a strike, it was devastating for creators. It was really tough in the industry.” . It was painful for the local economies that supported the production and it was very, very, very bad for the fans,” Netflix co-CEO Ted Sarandos said during the company’s first-quarter earnings call in April. So if there is a strike and we want to work really hard to make sure that we can get a fair and equitable deal so that we can avoid one. But if there is one, we have upcoming shows around the world and Movies have a huge base, we can probably serve our members the best we can. And we really don’t want that, but we had to plan for the worst and so we have a list of releases to last us a long time. There’s a very strong slate. But to be clear, we’re at the table and we’re going to try to find an equitable solution so there’s no strike.”
Netflix launched the $6.99 per month Basic With Ads tier in November as it looked to reinvigorate revenue growth. The company said in its quarterly shareholder letter that engagement at the level of ads has been above initial expectations and that it has seen “very little switching” from its standard and premium plans. It also emphasized that the average revenue per ad tier paid subscription in the US is higher than its standard plan.
In January, CFO Spencer Newman Said The company expected that one day advertising could account for 10% of Netflix’s revenue, or about $3 billion. The company didn’t break out figures for ad revenue or ad-based tier subscribers, though it has reportedly reached 1 million users.
“Given the trajectory of current healthy performance and our per-member advertising economics,
Especially in the US, we’re upgrading our ads experience with more streams and better
video quality to attract a wider range of consumers,” the company said. “We are confident that these enhancements will make our offering even more attractive to a wider set of consumers and will attract existing and new customers to the advertising plan strengthen the bond further.”
All 12 markets where the AD tier is available will provide 1080p versus 720p video quality and two concurrent streams.
The changes to Netflix’s plans come as NBC Universal, Fox, Disney and Warner Bros. Discovery prepare to hold upfront presentations in New York City next week. The companies are currently planning to host both in-person and virtual presentations.
For all of TheWrap’s WGA strike coverage, click here.
