Making Tech Headlines · Page 6
Streaming Discovers the Revenue Potential of Your Other Plans
· New York time
Netflix is making monetization a top priority amid reports of declining viewing time. Its third-quarter earnings report lists improving monetization among its main focuses, alongside efforts to increase entertainment value and leverage new technology. That creates a useful business distinction. Time spent watching and money earned are related measures, but they are not the same measure. A company can emphasize how effectively it earns revenue even while questions persist about how much attention its service receives. For subscribers, the relevant assessment is less abstract: does the service deliver enough enjoyment to justify its place in the household budget? The answer cannot be settled by a corporate preference for one metric over another. The premise is that the couch now has a productivity target. If viewers spend less time on it, the remaining minutes may need to arrive wearing business attire and carrying a monetization plan. Entertainment value remains an important part of Netflix's stated agenda, and understandably so. A streaming service cannot permanently substitute an earnings presentation for something people want to watch. The financial challenge is to earn more effectively without making the customer feel that a relaxing evening has become an appointment with an increasingly ambitious cash register.
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