Netflix Inc. NFLX 2.25%▲ hasn’t said much about the advertising-supported service it is developing. But advertisers are already plotting how to take advantage of it.
Peloton Interactive Inc. PTON 2.49%▲ hopes the streaming giant, which is known for its sophisticated show-recommendation engine, will offer precision targeting so it can reach the audience most likely to buy fitness equipment. Hyundai Motor Co. HYMLY 0.00%▲ wants to have its cars appear in some Netflix shows, while other marketers are mostly looking for the chance to reach younger viewers who have abandoned traditional television.
Advertisers and Wall Street are expecting to get an update on plans for the ad-supported service when the company reports earnings on Tuesday. Netflix is coming off a quarter in which it recorded its first subscriber decline in more than a decade. Offering a less expensive, ad-supported option is expected to help boost subscriber growth.
For years, advertisers were locked out of most of the biggest streaming services, where consumers were increasingly migrating as interest in traditional TV eroded. That is beginning to change: Warner Bros. Discovery Inc.’s HBO Max is now offering a plan with commercials and Walt Disney Co.’s Disney+ is moving to do the same.
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