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| The big idea | ||||
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Should Netflix sell ads? |
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Raise your hand if you subscribed to Netflix for DVD rentals. Anyone? Netflix’s infamous subscription model differentiated it from Blockbuster — may it rest in peace — and the company’s leap of faith to streaming differentiated it among media firms. Now, amid slowing growth and ruthless competition, analysts believe Netflix may need to un-differentiate itself, and that a world with ads on Netflix might make sense. Let’s step backNetflix’s historically massive YoY subscriber growth has slowed, and hasn’t eclipsed the 20% mark since Q4 2020. Why? Per Stratechery:
Despite this, Netflix has a strong business. “We were about a $20B revenue business 2 years ago… we’re $30B revenue now,” the company’s CFO, Spencer Neumann, said last month. So why the need for ads?True, there are other ways Netflix can grow revenue, including:
But these options have downsides. Raising prices can drive churn, it’s unclear if Netflix and gaming are a fit, and password policing will piss off half of America. Or, there are ads…… which Netflix is not entirely opposed to. “It’s not like we have religion against advertising,” Neumann said recently. Many other streaming services offer ad-supported plans at lower price points, and they’re growing fast. Analysts have also said that an adless Netflix is missing out on $9B in potential revenue. An ad-supported Netflix tier would offer price-sensitive subscribers a low-cost alternative, and if done right, the user experience wouldn’t take much of a hit. Take TikTok, for example, where ads themselves are TikToks, and sometimes go viral as a result. Of course, hiring and building for an ad network would be a big shift — but Netflix is no stranger to pivots. Remember, once upon a time the company mailed out DVDs. |
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| Feature Story |
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Zachary Crockett |
The guy who quit med school to become an NBA ref |
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One day in 2013, Suyash Mehta was approached by a mysterious man. Mehta, then a 22-year-old pre-med student, had just finished refereeing a high school basketball game in Maryland. It was a part-time gig to help pay for college — a step on the path to becoming a doctor. But he was about to hear 3 words that would change his life. “He came up to me and said, ‘You’ve been identified,’” recalls Mehta. “It was like something out of The Matrix.” Mehta later learned that this mysterious man was an NBA referee scout. The encounter would set him off on a bizarre, 7-year career pivot. Although NBA refs enjoy financial upsides — full-time salaries start at ~$200k — the job can be thankless and extremely high-pressure. Why would anyone, nonetheless an aspiring doctor, want to pursue this career path? What does it take to make the cut as a pro? And what does the lifestyle entail? This is the unlikely journey of one newly minted NBA ref. |
| Read the full story → |
| Free Resource |
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New Podcast: $9k Tech Giveaway |
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We’ve got twelve A+ prizes up for grabs. Here’s how to potentially win one:Step 1: Enter the giveaway below Step 2: Follow Marketing Against The Grain wherever you listen to fine podcasts + send your referral link to friends & family to earn more points. Step 3: Keep an eye on your inbox. On Fri., April 15th we’ll be notifying the 12 lucky winners via email. 👀️ |
| Enter to Win → |
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For official Marketing Against the Grain Contest rules, click here. |
| Funders & Dragons | ||||
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How fantasy novels blew away Kickstarter’s record |
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A fantasy author just smashed Kickstarter’s record for most-funded project at $41.7m+ from 185k+ backers. For reference, the previous record was $20.3m for a smartwatch in 2015, per CNBC. Meet Brandon Sanderson…… an accomplished sci-fi/fantasy author who wrote 4 new novels during the pandemic. He told fans he’d completed the manuscripts via his Kickstarter, which essentially served as a pre-order. Depending on donation level, backers get them as e-books, audio books, and/or printed novels quarterly through 2023. Margot Atwell, Kickstarter’s former head of publishing, attributes Sanderson’s success to:
Plus, fandoms are moneymakersSeveral of Kickstarter’s top projects are for genre work:
Kickstarter told The Hustle that, in 2021, sci-fi/fantasy projects represented ~30% of all publishing projects on the platform, bringing in ~$9m. Of course, Sanderson’s project will blow that figure out of the water for 2022. |
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| AROUND THE WEB |
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🏋️ On this day: In 1896, the 1st modern Olympic Games were held in Athens, 1.5k years after Roman Emperor Theodosius I banned them. 🥱 How to: It’s hard to establish a routine when you’re struggling to get out of bed. Here are some tips for building healthy habits, even if you’re exhausted. 📷 That’s cool: Check out the winners of Smithsonian magazine’s 19th annual photo contest. 🏝️ That’s interesting: Researchers share new insights into what the Marquesas Islands, one of the world’s most remote archipelagos, were like before humans discovered them. 🦆 Aww: For 30+ years, Sydney has hosted the Pied Piper Duck Show, a fashion show for ducks. |
| Meme of the day |
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Truly the only kind of marathon I’m interested in. (Source: Screen Rant) |
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How did you like today’s email?
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Today’s email was brought to you by Jacob Cohen, Juliet Bennett Rylah, Rob Litterst.
Editing by: Jennifer “C’mon, Netflix, ads are not chill” Wang.
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