iWorld
Netflix to launch cheaper ad-supported plan for early 2023
Mumbai: The streaming giant Netflix on Tuesday announced that it is targeting the launch of its ad-supported tier in the early part of 2023, in its letter to shareholders. The lower price advertising-supported offering will complement their existing plans that remain ad-free.
The global streamer recently announced its deal with Microsoft as a technology & sales partner. “They are investing heavily to expand their multi-billion advertising business into premium television video, and we are thrilled to be working with such a strong global partner,” it said.
The video-on-demand service is planning to launch its ad-supported tier in a handful of markets where advertising spend is significant. It expects to attract premium cost-per-mile (CPM) from brand advertisers.
“Our advertising business in a few years will likely look quite different from what it looks like on day one,” it said. “Over time, it is to create a better-than-linear-TV advertisement model that’s more seamless and relevant for consumers, and more effective for our advertising partners. While it will take some time to grow our member base for the ad tier and the associated ad revenues, over the long run, we think advertising can enable substantial incremental membership (through lower prices) and profit growth (through ad revenues).”
Netflix’s average revenue per member has grown at a five per cent compound annual rate from 2013 to 2021, hence the streamer feels it is the right time to give consumers more choice by offering a lower-priced subscription powered by advertisements.
The service lost 0.97 million subscribers in April-June quarter less than it had forecasted (-2.0 million), bringing its total members to 220.67 million. Notably, Netflix lost subscribers in the United States-Canada (UCAN), Europe, Middle East and Africa (EMEA) and Latin America (LATAM), however, continued to add paid net additions of 1.1 million subscribers from Asia-Pacific and China (APAC).
It reported APAC revenues over $900 million up by 23 per cent (excluding foreign exchange) year-on-year. It currently has 33.72 million subscribers in the region. Netflix forecasts paid net additions of 1.0 million in the next quarter.
The company reported quarterly revenue of Rs 7970 million up by 8.6 per cent YoY. Its operating income stood at Rs 1578 million and net income at Rs 1441 million.
iWorld
Meta introduces new AI tools to boost discovery-to-purchase journey
From shoppable Reels to generative video, platforms get smarter at turning attention into sales.
MUMBAI: Meta is turning “scroll and stop” into “scroll, stop, and shop” and it’s using AI to make the whole journey feel almost effortless. The company has announced several new tools and enhancements designed to help brands guide people from discovery to purchase more effectively, while delivering more relevant and personalised experiences across its platforms.
Creators can now add product links more broadly on Instagram Reels, turning their content into shoppable moments. Businesses in 22 countries, including India, will soon be able to share their product catalogues with creators, opening up a new sales channel for brands and fresh monetisation opportunities for creators.
The Creator Marketplace has also been upgraded with enhanced target audience filtering, integrated with Ads Manager. This helps businesses quickly find creators who are a strong match for their goals. Campaigns using Partnership Ads deliver, on average, 19 per cent lower CPAs, 13 per cent higher click-through rates, and 71 per cent higher median brand lift.
Meta is expanding Reels Trending Ads inventory with new content categories including TV & Movies, Travel, Business, Finance & Investments. According to Meta’s analysis of 59 studies, Reels Trending Ads delivered an incremental 6.6 percentage point Ad Recall lift compared to control groups.
AI-Powered Shopping Enhancements
- Product Set Optimisation is now in testing, allowing retail media networks to promote specific products with detailed reporting. Early results show 17 per cent lower median seller cost per purchase.
- Product Showcase is being expanded so marketers can upload one image or video and let Meta’s AI automatically add relevant products as a carousel when it improves performance.
Meta is expanding its generative AI capabilities with:
- UGC-style videos featuring avatars and voiceovers
- Easier voiceover translation and text overlay translation in a single streamlined flow
- New tools to automatically turn product catalogues into dynamic video ads for Reels
Early testing of the Advantage+ creative video generation tool showed a 10 per cent increase in CTR and 8 per cent increase in CVR on average. Campaigns using catalog product video saw 20 per cent more conversions per dollar, while Reels placements with catalog product video delivered 33 per cent higher incremental conversions.
Industry voices welcomed the updates. Vikas Chawla of Social Beat called Partnership Ads a “flywheel” for authentic content that converts. Niti Kumar of Spark Foundry and Sadhvi Dhawan of Blink Digital highlighted the power of Reels Trending Ads for cultural relevance and guaranteed share of voice. Ramasish Bhowmik of Adbuffs noted that Meta’s GenAI tools are giving teams a clear competitive edge.
In a world where attention is fleeting but shopping intent can spark in seconds, Meta is betting that smarter AI will help brands turn discovery into decisions faster than ever. The message is clear: the future of advertising isn’t just about reaching people, it’s about reaching them at exactly the right moment, with exactly the right product.
