Aldo's Notes #8
Aldo's Notes #8
The One with Creators and web3; Netflix ads; Snap cuts; WhatsApp shopping and NBA League Pass.
1. Fans are the New Creators
Li Jin has published a very interesting take on the new relationship between creators and fans enabled by web3.
This evolution revolves around infrastructure and alignment of incentives.
Up until now, the roles of creators and fans were very separate.
Web3 allows fans to build on creators’ ideas whilst being officially rewarded for their work.
Smart contracts and tokens can provide the governance to enlist the creativity of the ‘creators previously known as fans’.
Why is it important? A more equitable reward of creativity is likely to lead to a content explosion.
Read more here.
2. Netflix plans to charge top dollar for ads
Netflix is looking to charge premium prices on its upcoming ad-supported platform.
A $65 CPM has been mentioned by ad buyers according to the WSJ.
Why it matters: Netflix is launching an ad-supported offering in Q3 2022. This will open up fresh opportunities for advertisers and for $$$ to migrate from other platforms.
Netflix has partnered with Microsoft to build what is a drastic move away from its ‘free from advertising’ policy.
Other details:
November 1 expected launch
$20M maximum annual spend by any brand
4 minutes of ads for each hour of programming
brands to commit to annual spend upfront
3. Snap cuts staff and costs
Snap, the company behind Snapchat, is cutting staff and costs to address a slowdown in advertising revenue growth.
Evan Spiegel, CEO and founder, said “our financial results for Q2 do not reflect our ambition.”
Snap is not providing guidance for revenue or adjusted EBITDA for the third quarter of 2022 due to “uncertainties related to the operating environment”.
Bottom line: competition for advertising dollars is getting fiercer and whoever falls short of expectations has to achieve profitability by sacrificing people and projects. Will this be enough for Snap?
4. Shopping with WhatsApp in India
Mark Zuckerberg has announced that WhatsApp is partnering with JioMart in India to offer grocery shopping.
Why it is important: after years of talk, WhatsApp seems to be delivering on its promise of connecting shoppers and businesses. Enabling shopping on one of the most popular messaging platforms might transform many industries.
5. NBA reduces cost of League Pass
The NBA is lowering the cost of League Pass, according to Sportico.
The war for streaming eyeballs and dollars is pushing the cost of watching NBA down.
According to renewal notices sent to existing customers, the League Pass standard package will now cost $100.
The premium version will cost $130. This is a dramatic drop from last year.
Why it matters: the ability of streamers to extract revenue from viewers will impact their ability to grow, their evolving business model and the ultimate success of each company.